The Role of Bank Automation on the Financial Performance of Commercial Banks in Ethiopia
| dc.contributor.advisor | Berhanu, Habtamu (PhD) | |
| dc.contributor.author | Melaku, Eskender | |
| dc.date.accessioned | 2021-07-19T06:56:02Z | |
| dc.date.accessioned | 2023-11-04T07:58:30Z | |
| dc.date.available | 2021-07-19T06:56:02Z | |
| dc.date.available | 2023-11-04T07:58:30Z | |
| dc.date.issued | 2021-03 | |
| dc.description.abstract | This study examines the Roles of bank automation on financial performance of commercial Banks in Ethiopia using return on equity as a financial performance indicator. The study employed secondary data and purposive sampling technique to select ten commercial banks operating in Ethiopia covering the periods from 2014 to 2019 considering the availability of data. After reviewing previous theoretical and empirical literatures, variables were identified as bank specific and macroeconomic so as to disclose their correlation and role on financial performance of commercial banks in Ethiopia. Bank specific variables were number of ATM terminals (NATM), number of debit cards (NDC), value of mobile banking transactions (VMOBTnx), number of POS (NPOS), value of real time gross settlement (VRTGS) and GDP. Random effect regression technique and correlation analysis were used to analyze the data using econometric data analysis software package STATA version 14.2. The finding of the study revealed that from bank specific variables, number of point of sale terminals (NPOS) and value of real time gross settlement (VRTGS) had positive and significant roles on commercial bank’s profitability as measured by return on equity. It indicated that increasing the number of point of sale terminals (NPOS) and value of interbank transfer conducted by RTGS had a positive roles on the financial performance of commercial banks as these automated financial services are more convenient for bank customers in marketplaces and banks in transferring large amount of money. In addition, number of ATM had negative and significant role on the commercial bank’s profitability as measured by return on equity which showed that increasing number of ATM had negative roles on the financial performance of commercial banks as the initial cost of investment had negative impact on financial performance. On the other hand number of debit card (NDC) and Value of mobile bank transaction (VMOBTnx) had positive and insignificant role on financial performance of commercial banks in Ethiopia during the study period. In this study, one macroeconomic variable were tested which were GDP as it determines the overall economic performance. In this regard, GDP had positive and significant (at 10% level) role on the performance of commercial banks in Ethiopia during the study period. The study recommended that special attention on those variables with positive and significant role on financial performance together with awareness creation for customers collaborating with NBE could enhance the financial performance of commercial banks in Ethiopia. | en_US |
| dc.identifier.uri | http://etd.aau.edu.et/handle/123456789/27247 | |
| dc.language.iso | en | en_US |
| dc.publisher | A.A.U | en_US |
| dc.subject | Bank Automation | en_US |
| dc.subject | Commercial banks | en_US |
| dc.title | The Role of Bank Automation on the Financial Performance of Commercial Banks in Ethiopia | en_US |
| dc.type | Thesis | en_US |