Abebaw Kassie (PhD)Getawey Gashawbeza2025-04-082025-04-082024-06-11https://etd.aau.edu.et/handle/123456789/5327This study aims to identify and analyse the determinants of non-interest income (NII) in Ethiopian commercial banks. Specifically, it examines the impact of bank-specific factors, macroeconomic variables, and technological advancements on non-interest income. An explanatory research design with a quantitative approach was employed, utilizing panel data from ten commercial banks in Ethiopia, spanning from 2010 to 2021. Secondary data was collected from internal and external sources, including the National Bank of Ethiopia, the Ministry of Finance, and annual financial reports of the sampled banks. The results indicate that certain bank-specific factors positively and significantly impact non-interest income. Conversely, macroeconomic variables such as GDP growth and inflation rate negatively impact non-interest income. This study provides a comprehensive analysis of the determinants of non-interest income for Ethiopian commercial banks. It highlights the importance of stable funding sources, foreign currency holdings, and macroeconomic conditions. Banks should focus on increasing core deposits, leveraging foreign currency services, and diversifying income streams to mitigate the impacts of economic cycles and inflation. Inflation-adjusted fee structures can help mitigate the erosion of non-interest income. Investments in digital banking services can further enhance non-interest income. Effective risk management remains crucial for maintaining overall financial stability.enThesis