Effects of Agency Banking on Bank Performance in Ethiopia Commercial Banks

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Addis Ababa University


The paper investigates the effects of agency banking on ban k performance in Ethiopia commercial banks. The study sought to explain the significance of security, telecom infrastructure, knowledge and bank agent distance. Descriptive research and explanatory research design is conducted in order to identify the extent at which the independent variables affect the dependent variables. The study used primary data collected from nine purposively selected commercial banks in Ethiopia. Multiple regression analysis was used in establishing the significance of the relationship. The paper finds that knowledge has statistically significant contributor for bank performance at 5% level of confidence and followed by bank agent distance is also the next highest statistically significant contributor for bank performance at 5% level of confidence whereas security and telecom infrastructure increase bank performance which is statistically insignificant at 5% level of confidence. Based on the research findings, the researcher provided recommendations. In terms of contribution the four dimension of agency banking such as (security, telecom infrastructure, knowledge, and bank agent distance). However, Ethiopian Commercial banks has to give proper attention to security since in terms of contribution it is contributing positive and insignificant which very weak. So that it will affect the degree of whole contribution to bank performance.


A thesis submitted to the School of Graduate Studies of Addis Ababa University in partial fulfillment of the requirements for the Award of the Degree of Executive Masters of Business Administration (EMBA)


Agency banking, Bank Performance., Financial Inclusion, Financial Innovation