Determinants of Non-Interest Income in Ethiopian Commercial Banks

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Addis Ababa University


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



Determinants of Non-interest Income in Ethiopian Commercial Banks