Determinants of Non-Interest Income in Ethiopian Commercial Banks
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Date
2014-06
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Addis Ababa University
Abstract
This study focused on the determinants of non-interest income in the case of Ethiopian
commercial banks. The trend of non-interest income of commercial banks in Ethiopia is
varying from time to time. The data for this study were collected from financial
statements of the sample commercial banks and annual reports of National Bank of
Ethiopian, Minstry of Finance and Economic Development (MoFED) and Central
Statistics Agency (CSA). Eight commercial banks were used as the sample for this study
which was established before 2003 G.C. After the data collected, it was analyzed using
multiple linear regression and ordinary least square estimation method. The finding of the
study is that bank relative performance and loan quality from bank-specific factors and
exchange rate volatility from macro-economic factors are the most influential factors on
non-interest income of Ethiopian commercial banks. The researcher recommends that,
banks should keep their efficiency up, participate on different innovative, marketing and
focusing on foreign exchange trade so as to enhance their level of non-interest income
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Keywords
Determinants of Non-interest Income in Ethiopian Commercial Banks