Ethiopian banking industry analysis. Addis Ababa, Ethiopia .
Ethiopian banking industry analysis However, the pandemic has started disturbing the way our Ethiopia market analysis on Fitch Solutions. Nine years audited financial data (i. However, the pandemic has started disturbing the way our analysis to understand and interpret the effect of COVID-19 on banking service in Ethiopian Context. and a commitment to inclusive growth will be key to ensuring that the reforms translate into tangible In Ethiopian banking industry, Zahoor (2011) SERPERF Analysis in the Banking . Ethiopian banking system is one of the most underdeveloped compared to the rest of the world. Intense Competition in the Banking Industry: The banking industry in Ethiopia is highly competitive, with numerous banks vying for market share. The study adopted quantitative research approach and the statistical cost accounting model was used to estimate the profitability, which was measured by return on asset as a function of balance sheet, industry specific and macroeconomic explanatory variables. Services, Unpublished Master theses, Karachi Institute . Share. , 2017). S. The [currentlayername] in Ethiopia is projected to grow by 2. To investigate such effect, most commonly used dimensions of internal marketing which was communication, motivation; The application used to analyze and examine the hypotheses is the SPSS V20. The main purpose of this study was to examine the effect of Electronic-Banking service quality on customer satisfaction in case of Commercial bank of Ethiopia Afar region branches. Islamic banking is a phenomenon of the finance and banking world in the recent decades. Overview of Banking in Ethiopia Financial sector of Ethiopia has been registering nearly 15% annual growth for the past ten years (MoFED, 2014). In Ethiopia, mobilizing savings through intense deposit collection has been regarded as the major task of banking. Bank of Ethiopia (NBE) in preparing the Ethiopia Financial Sector Modernization Roadmap (Roadmap). The This research project aims to explore factors that affect the adoption of e- banking in Ethiopian banking industry. The Bank of Ethiopia offered the nation’s commercial and central banks services. Ethiopia adopted Islamic banking through interest-free banking window scheme in 2011 and Full-fledged interest-free The objective of this study was to analyze determinants of banks' profitability of commercial bank of Ethiopia in south Addis Ababa district over the period of 2014-2018. Banking industry play significant role for the development of nations economic and of under developed countries like Ethiopia in particular, where the financial system as a whole is bank dependent due to poor development or even absence of the stock market. B. This study investigates the bank-specific, industry-specific, regulatory and macro-economic determinants of Net Interest Margin (NIM) for a total of eight commercial banks in Ethiopia, using panel country under one regulatory body, the National Bank of Ethiopia (NBE, 2014). What keeps the e-banking customer loyal? A multigroup analysis of the moderating role of On the other front, unlike the traditional SCP which claims an inverse relationship between bank concentration and competitiveness, this study finds a growing competition in the Ethiopian banking The main objective of this study is to assess credit risk management system in Ethiopian banking industry of some private and government commercial banks. 60bn in 2029. Discover Fitch Solutions . 79 billion, which comes close to 15 percent of GDP (Government of Ethiopia & World Bank Citation The study aims to investigate the factors that contribute to credit risk in Ethiopian commercial banks, considering both macroeconomic and bank-specific factors. More specifically, the study uses twelve years (2002 - 2013) data for eight banks in Ethiopia. The General objective of the study was to analyze the Structure, Conduct and Performance of Banking Sector in Ethiopia by using balanced panel data for 10 years (2009-2018) annual audited financial statements of 12 banks and macroeconomic data. This study focuses on improving risk management of banking in Ethiopia by Challenge & prospects of mobile and agent banking Adoption in Ethiopia banking industry 2018 AAU, MBA (Finance), Yikeber Zigale Page i Statement of declaration I, the undersigned, declare that this thesis entitled “Challenge and prospects of mobile and agent banking adoption in Ethiopia banking industry” is my original work prepared under The effect of bank concentration and competition on banks performance can have significant policy insinuation. Despite these changes, currently the banking industry in Ethiopia is characterized by operational inefficiency little & insufficient competition & perhaps can be distinguished by its Risk management practice and Credit risk analysis. (2010). A modern empirical analysis based on the non-structural method developed by Panzar and Rosse (1987) regressions with fixed effects were used to calculate the H statistic. The Data The main data sources related to macroeconomic variables are obtained from World Economic Indicator issued by IMF, World Bank, the national bank of Ethiopia (NBE), Ethiopian statistical agency. Subsequently, the researcher employed Random Effect Model to investigate the extent of relationship between independent variables and dependent variables. 7. The high-profile corporate collapses and failures in early 2000s changed the image of accounting, auditing, and regulatory environments. C, owned by Ethiopian investors 60% and National and Grindlays Bank of London 40%; while Banco di Rome (Ethiopia) S. Hence, this study measure of CSR activities of the Ethiopian banking industry based on internal stakeholder (employee) perception was used. The Ethiopian banking sector is currently comprised of a central bank (The National Bank of Ethiopia or NBE), one state owned development bank, a government owned commercial bank and sixteen private banks. While studies quoted the Accounting data are useful in assessing the economic prospects of a firm. This study utilized both descriptive and econometric analysis based on a panel data to examine the determinants of non-performing Correlation and regression analysis were carried out to investigate the relationship and the magnitude of variation explained by transactional and transformational leadership styles on satisfaction and performance respectively. Beyond providing a range of important financial services, the banking industry is a major contributor to gross domestic However, there is no adequate study here in the Ethiopia banking industry which could be relevantly guides bank strategists to develop loyalty programs. The sample comprises 17 banks from the 26 banks operating in the Ethiopian banking industry (National Bank of Ethiopia, 2022/23). (NBE, 2014/15) 2. The article T he new Bank, Bank of Ethiopia, was a purely Ethiopian institution, was the first in digenous ban k i n Af rica, a nd established by an official de cree o n August 29, 1931 with cap ital o f £ 2. The study was conducted based on the data gathered from five banks in Ethiopia; four private banks (Dashen bank, Awash bank , United bank, and Abay bank) and one state owned bank (commercial bank of Ethiopia). 4. We take a deep-dive into Ethiopia’s banking sector and cover—across the following 70 pages—its macroeconomic contribution, recent performance, service offerings, regulatory environment, income sources, market structure, profitability rankings, bank-by-bank valuations, cross-country standing, and future outlook. of Economics and Techn ology . Amare, B. The study used ordinary least square Abstract: The main objective of this study is to assess credit risk management system in Ethiopian banking industry of some private and government commercial banks. The findings depicted as the Economic factors like unemployment, inflation, source of customers income and saving This study aims to assess and identify the determinants of NIM in the Ethiopian banking industry. However, multiple factors can impact the expansion of the banking industry. 1. Bank leaders will need to make some tough choices to achieve this goal. To the researcher’s knowledge, the present study is the first to analyse the effect of political stability on the profitability of banks in Ethiopia. This competition can potentially impact Awash Bank’s customer acquisition and retention efforts, as well as its ability to attract deposits and loan customers Awash Bank SWOT Analysis . This study comes with A modern empirical analysis based on the non-structural method developed by Panzar and Rosse (1987) regressions with fixed effects were used to calculate the H statistic. The viability of the banking industry. To this end, the study adopts a quantitative method of research approach and 9 sample commercial banks were purposively selected from 18 banks operating in Ethiopia. Data related to bank and industry specific variables are gleaned from the national bank of Ethiopia and each bank’s audited annual reports. Bank’s competitive position in the banking industry and ensure its survival. They have been continually growing, showing only a slight reduction in profits, but has been able to collect a huge 1. In the country, one bank branch serves about 17 2019). 2. Secondary data were also collected from different books and websites. Hence, the aim of the study is to analyze the financial performance of commercial banks in Ethiopia for the period between 2009 and 2012. Ethiopia's banking industry, headed by the Commercial Bank of Ethiopia, is likely to continue consolidating, but higher liquidity from IMF support could improve financial stability. Scribd is the world's largest social reading and publishing site. A sample While the findings from the latest stress tests suggest that the Ethiopian banking sector is generally stable, there are vulnerabilities. 4 Regulation The banking industry is among one of the most heavily regulated industries in the world and Ethiopian banking Earlier studies on Ethiopian banking industry Most literatures are used banks specific, industry specific, and macro economic factors as a determinant of banks profitability. The theoretical and empirical debate on the role of capital structure on firms’ value began after the “irrelevance propositions” of Modigliani and Miller The purpose of this paper is to explore the effect of internal marketing on service quality in the Ethiopian banking industry. Seven commercial The results contribute to the existing literature by providing empirical evidence on the specific dynamics of the Ethiopian banking sector and offer valuable insights for policymakers and industry The collected data was analyzed in descriptive and inferential analysis. 6 million contract awarded to Indian tech company 10 Oct 2012 Thus, this study is conducted to fill this gap and find evidence on the determinants of bank lending in Ethiopia by considering bank-specific, industry-specific and macroeconomic variables such as; volumes of deposit, capital adequacy, profitability, bank size, cash required to reserve, liquidity, bank concentration, average bank lending rate The aim of this study was to examine factors that affecting the adoption of mobile banking in Ethiopian Banking industry. All the independent variables are positively and directly related to customer loyalty particularly in viability of the banking industry. Established in 2011, EthSwitch announced during the recent fiscal With provisional 2019-20 results for Ethiopia’s banks recently becoming available, this note reviews the sector’s latest performance, notable trends, and near-term outlook. Deribie E (2012) Evaluation of customer satisfaction on bank services: An empirical analysis (Jimma commercial bank of Ephrem. Read the Research. Ethiopian banking system is one of the most underdeveloped compared to the rest of the world This study tried to assess factors affecting the efficiency and performance of Ethiopian commercial banks. Interdisciplinary Journal of Contemp orary. 83 Zahoor (2011) SERPERF Analysis in structural changes in the banking sector of the country & have encouraged Private Banks to enter & expand their operations in the industry (Lelissa, 2007). Convenient sampling technique was employed in the study with Statistical Package for Social Scientist (SPSS) used in the analysis. Target populations of this study are customers and branch managers of the commercial banks in Gondar city. one is from the banking industry and the other is from the electronic payment processing. Rejecting interest policy as an instrument for any business activity, Islamic banking is based on the substitutions for interest that are profit, rental, commission, and wage, all of which are regarded as legitimate earnings of trade, its Ethiopia’s formal (regulated and controlled) financial sector comprises banks, insurers, microfinance institutions, and capital goods finance companies. Thus, this study examined the bank-specific The study examines the determinants of Ethiopian commercial banks" profitability by employing bank-specific variables (capital adequacy, operational cost efficiency, employee efficiency, customer deposit, non-interest income, credit risk, liquidity risk, overhead, net interest margin and non-performing loans), industry-specific variables (bank A TRANSACTION COST ANALYSIS OF COMMERCIAL BANK OF ETHIOPIA: An Empirical Analysis A Thesis Submitted to the School of Graduate Studies of Jimma University in Partial Fulfillment of the Requirements for the Award of the Degree of Master of The Ethiopian banking industry is a century old industry. With provisional 2019-20 results for Ethiopia’s banks recently becoming available, this note reviews the sector’s latest performance, notable trends, and near-term outlook. IT Infrastructure and Security Department . Does the Corporate Governance Practice Support the Corporate Financial Performance of Banking Industries in Ethiopia? Panel Data Analysis. The paper examines the practices, opportunities and challenges of E-banking services in Ethiopia. The market is expecting that short-term rates will remain low or hold constant in future if See more of fundamental changes, Ethiopia’s banking sector generates much interest from investors and raises as many questions—which this research note attempts to address by covering its past, This research paper aims to provide insight into the origin and development of the banking sector in Ethiopia, as well as its current structure, regulatory framework, performance, and status Bank of Ethiopia (DBE) is the specialized bank because unlike other commercial banks, DBE doesn’t mobilize deposits and its source of funding is long term government bonds. However, according to the recent empirical evidence banking industry in Ethiopia is growing fast (Geda et al. 04 lakh crore (US$ 2,452. Deposit mobilization is the most important service and an integral part of banking operations. Providing expert analysis, independent forecasts and competitive intelligence on the banking and financial services industry. The remaining shares are bought by Ethiopians living in different parts of the country 2014. Richard E. Data for this study were gathered from Reports, Books, web Data from 17 commercial banks, the National Bank of Ethiopia, and the senior management of the bank were collected to analyze the data using descriptive statistics such as graphical representation The paper examines the practices, opportunities and challenges of E-banking services in Ethiopia. Zairi As per the knowledge of the researchers, there is no study which is conducted on information security incident management current practice of Ethiopian Banking Industries. (Zerayehu et al. (2015), “ Assessment of insider threat in Ethiopian banking industry ”, MSc. To meet the purpose of the study, Explanatory, cross sectional, quantitative survey method is used. 2. 03206 The study also concludes the performance of banks in terms of liquidity as one component of CAMEL, based on the analysis Abay bank outperforms the remaining banks. A detail analysis was undertaken to investigate the relationship between banking structure and performance. Analyzing Financial Performance of Commercial Banks in Ethiopia: CAMEL Approach Mulualem Getahun A Thesis Submitted to (Lelissa 2007). Hence, the According to the Nationainal Bank of Ethiopia, (2017/2018), Currently the Ethiopian bank industry comprises of total Eighteen (18) banks, sixteen (16) private commercial banks and Two(2 ) PDF | On Jan 1, 2015, Shimels Diriba published Modeling and Analysis of Ethiopian Banking Sector Performance using BSC and AHP Approaches | Find, read and cite all the research you need on With provisional 2019-20 results for Ethiopia’s banks recently becoming available, this note reviews the sector’s latest performance, notable trends, and near-term outlook. F. The NBE conducted these tests using data from June 2023, examining credit and liquidity risks across three different scenarios: a baseline reflecting IMF economic growth projections, a moderately adverse scenario with a 10% After the Bank of Abyssinia’s liquidation, its management, personnel, and assets were taken over by the newly founded Bank of Ethiopia, which the government owns. The findings show that relationship marketing dimensions have an effect on customer loyalty. The Beyond the bank industry-specific and macroeconomic determinants, the article aims to understand the relationship between political stability and credit risk. This makes a significant contribution to the existing literature Journal of Industrial Policy and Technology Management, 3(1), 2020, 71-82 Analyzing the Risk Management Framework of Ethiopian Banking System: A Case Study for Commercial Bank of Ethiopia paper of Nwanne (2015) provides material source for Banking System in Ethiopia. For detailed analysis of credit risk management practices, the research performance of Ethiopian banking industry. But it will not continue to be so. (2014). Nevertheless, the leading banks are owned The model results of the study revealed that firm size, liquidity ratio, asset tangibility, capital adequacy, leverage and real GDP growth rate have a positive and Drawing insights from the National Bank of Ethiopia's Quarterly Bulletin for the third quarter of 2022/23, this article delves deep into the developments within the banking sector, shedding Studies by Lelissa (2014), Tesfay (2016), Zenebe Lema (2017), and Dinberu and Wang (2018) have tried to measure the efficiency of commercial banks in Ethiopia. haile@gmail. Data Source and Method of Collection Secondary sources of data that deals with the financial performance of bankswere considered in order to analyze the relationship between the variables. For instance, a World Bank analysis of the impact of conflict on productivity losses estimates the total damage and loss sustained by the agriculture sector in Afar, Amhara, Oromia, Benishangul Gumuz, Tigray, and Konso in SNNPR regions at USD 16. As per his word, the banking industry has been protected for decades. Purposive sampling method was employed to draw the sample from the population. The theoretical and empirical debate on the role of capital structure on firms’ value began after the “irrelevance propositions” of Modigliani and Miller (Citation 1958). al (2008) conduct research on the Credit risk management system of Tanzanian . Analyzing Determinant of deposit mobilization in Ethiopia Bachelor's thesis 71 pages, appendices 11 pages November 2023 The oversight of this project falls under Tsehay Bank SC, established on July 23, 2022. and Chiu, T. All the independent variables are positively and directly related to customer loyalty particularly in Commercial bank of Ethiopia and Dashen Bank S. This The researcher starts this study to find a solution on the country’s banking industry credit risk management. pdf), Text File (. com. The Adoption of Electronic Banking System in Ethiopian Banking Industry: Barriers and Drivers The study used both quantitative and qualitative (mixed) research approach with a Survey design to collect and analyze the data. ⮚ To see benefits of adoptiong new technology in the Ethiopia banking industry. Hence, the bank does not compete with commercial banks in mobilizing deposits. C and Banco di Napoli (Ethiopia) S. Development Bank of Ethiopia (DBE) is the specialized bank because unlike other commercial banks, DBE doesn’t mobilize deposits and its source of funding is long term government bonds. It mainly used unbalanced panel data collected from annual reports On the other front, unlike the traditional SCP which claims an inverse relationship between bank concentration and competitiveness, this study finds a growing competition in the Ethiopian 2. ⮚ To analyze (African development bank, 2011), the Ethiopian banking system is dominated by a single public commercial bank in terms of national coverage, capital loans and deposits (National bank of Ethiopia (NBE), 2018; Geda et al. LITERATURE REVIEW Historical background of the banking industry in Ethiopia The commercial Bank of Ethiopia (CBE) was legally established as a Share Company in 1963 to take over the commercial banking activities of the State Bank of Ethiopia, which was founded in 1942 with twin objectives of performing the duties of both commercial and central The Ethiopian banking industry also entering in to this ICT based service to customer in order to bring efficiency in operation by minimizing operating cost thereby increasing customer satisfaction and profitability. Beyond providing a range of important financial services, the banking industry is a major contributor to gross The banking industry in Ethiopia has been experiencing an unprecedented period of growth and prosperity before COVID-19. C. The study evaluates the adoption and development of E-banking technology in the Ethiopian banking industry. The revenue in the Investment Banking market is projected to In Ethiopian banking industry, customers perceive very little difference in the banking products offered by banks dealing in services as any new offering is quickly matched by competitors. The researcher evaluates this banks credit risk management practice by the credit factors inuencing the nancial performance of banks within the Ethiopian banking industry. G (2015) who tried to analyze the Determinants of Financial Distress Conditions on selected private commercial banks by considering non performing loan ratio, Capital adequacy, Section two is discussed the background of Ethiopia banking industry followed by literature review, research methodology, framework, analysis, and finding and Ethiopian financial sector, especially banking industries and the overall economy, were assessed. The work was funded by the Department for International Development (DFID) Ethiopia's banking system dominates the country's financial sector. Keywords: Ratio analysis, financial performance, Bank performance, Ethiopia _____ 1 College of Business and Economics, Mekelle University, Download Citation | Determinants of interest free financial products in Ethiopian banking industry | This study is undertaken to identify the determinants of the use and The banking industry plays a vital role in the Ethiopia economy. We find that the banking sector has so far come out of the COVID pandemic in relatively good shape (as has the broader macroeconomy) and that private banks have done The CAMEL analysis reveals that Demerara Bank Limited (DBL) is the best-performing bank, and the Guyana Bank for Trade and Industry (GBTI) is the worst-performing bank. A research undertaken by Ayana(2014) on factors affecting adoption of E-banking system in Page 28 Ethiopian banking industry, focused on factors that affect adoption of E-banking in Ethiopian banking industry. Population of the study consist all 19 commercial banks that have operated in 2015. The paper shows how financial ratios can be used to explore the sources of a firm’s profitability and evaluate the “quality” of its earnings in a systematic fashion. The collected data was analyzed using descriptive statistics, correlation and regression analysis. org Ethiopian financial sector, esp ecially banking industries and t he overall economy, were assessed. download Download free PDF View PDF chevron_right. It has begun during the reign of Menilik II A strong banking industry is important in every country and can have a significant effect in supporting economic development through efficient financial services. The CAMEL analysis reveals that Demerara Bank Limited (DBL) is the best-performing bank, and the Guyana Bank for Trade and Industry (GBTI) is the worst-performing bank. Based on The collected data was analyzed in descriptive and inferential analysis. This study comes with new variables that were not tested before by other researchers in the country. Box:1888, Addis Ababa, Ethiopia industry experts and hence, arguably experts in banking and finance and related areas would offer rich model regression analysis par t it is must to make sure that the . Literature Review . Results are presented using tables, figures, graphs and charts to show the extent of influence of identified factors on the country under one regulatory body, the National Bank of Ethiopia (NBE, 2014). However, little work has been done to identify these factors in electronic Ethiopian Digital banking and the effect of Generative AI on the industry Scaling gen AI in banking: Choosing the best operating model. There are eighteen banks in the Ethiopian banking industry which Structure Conduct and Performance Analaysis in Ethiopian Banking Industry. The first bank in Ethiopia was Bank of Abyssinia. Theoretical reviews. Descriptive research This study used a statistical analysis program called Statistical Package for the Social Sciences Capital Adequacy Ratio: an Empirical Study on Ethiopian Banking Industry and submitted in partial fulfilment of the requirements for the Degree of Master of Science (Accounting and by using documentary analysis. The central bank of Ethiopia plans to introduce a new system to centralise payments and communication in the country within a year; $3. In For example, real returns after accounting for the high inflation of the past five years are only in the range of 5-10 percent per annum, as annual inflation averaged 19 percent in the last five years (Habtamu, 2012). 51% (2024-2029) resulting in a market volume of US$0. Indian Banking Industry Analysis According to RBI’s Scheduled Banks’ Statement, deposits of all scheduled banks collectively surged by a whopping Rs 2. During a parliamentary session on November 4, 2023, Prime Minister Abiy Ahmed (PhD) delivered a speech emphasizing the state of Ethiopia’s banking and financial industries. The analysis of this study was made based on a case study on Correlation and regression analysis were carried out to investigate the relationship and the magnitude of variation explained by transactional and transformational leadership styles on Capital Adequacy Ratio: an Empirical Study on Ethiopian Banking Industry and submitted in partial fulfilment of the requirements for the Degree of Master of Science (Accounting and by efficiency level of the Ethiopian banking system are scanty. The result of the data are organized and analyzed by using descriptive through cross tabulation and percentage to analyze the possible solution. Although Ethiopia’s banking sector is sound, key risks remain that should be considered. The banking industry plays a vital role in the Ethiopia economy. Thus, the number of people choosing to take banking services is also increasing, ensuring industry growth. Daniel Gebrehawariat . The study uses census survey and sampling technique. Hence, policies to encourage further We take a deep-dive into Ethiopia’s banking sector and cover—across the following 70 pages—its macroeconomic contribution, recent performance, service offerings, regulatory environment, The empirical results using CRk and HHI show that Ethiopian banking is a highly concentrated market and show stagnated trends during the study period. This implies the two successive years rate is higher than the single-year rate so that the rate should rise. Generative AI is transforming financial services, offering operating in Ethiopia. 2010-2018) was used to analyze the effect of Factors Affecting Adoption of Electronic Banking: An Analysis of the Perspectives of Banks' Customers. This analysis should provide standardized path coefficients Amare, B. The findings of this With over 6 billion Birr paid-up capital Amhara Bank, the new entrant to the banking sector of Ethiopia, today held its inaugural meeting. danihawari@gmail. C and in general in measure the most important determinants of the brand loyalty in Ethiopian banking industry. panel d ata and model fit with classical linear r egression . Lee, C. Ethiopia market analysis on Fitch Solutions. 00 billion) as on FY24. 4 Bank resources in Ethiopia Total resources mobilized by the banking system in the form of deposit, loan collection and Download Citation | The Impact of Electronic Banking on Customers ’ Satisfaction in Ethiopian Banking Industry (The Case of Customers of Dashen and Wogagen Banks in Gondar City) | This study This study thus seeks to measure the existing maturity level and examine the security gaps in order to propose possible changes in Ethiopian private banking industry's information system security Effect of Service Quality on Customer Satisfaction in Ethiopian Banking Industry - A study conducted in Wolaita Sodo February 2017 DOI: 10. In addition, it restructured the two development banks as commercial banks, and Earlier studies on Ethiopian banking industry Most literatures are used banks specific, industry specific, and macro economic factors as a determinant of banks profitability. The results contribute to the existing literature by providing empirical evidence on the specific dynamics of the Ethiopian banking sector and offer valuable insights for policymakers and industry The banking sector in Ethiopia has economic significance through its contribution of about 3. We find that the banking sector has so far come out of the COVID pandemic in relatively good shape (as has the broader macroeconomy) and that private banks have done The banking industry in Ethiopia has been experiencing an unprecedented period of growth and prosperity before COVID-19. Therefore, this The findings show that relationship marketing dimensions have an effect on customer loyalty. iiste. Selection of banks for the study was done based on two criteria; it involves only government and private commercial banks and two those banks that operate during the period 1999-2014 Ethiopia, the second-most populous country in Africa with 110 million inhabitants, has one of the oldest public telecommunication operators established in 1894. e. There are eighteen banks in the Ethiopian banking industry which 2. The examination of time series data was combined with a multivariate regression analysis Article, Economical Herald of Donbas Quarterly , 2010. The PESTEL analysis of the Banking Industry can show the potential for growth in the banking industry and how the macro factors can contribute to it. be profitable i n the banking industry in Ethio pia. Addis Ababa, Ethiopia . Bunna International Bank . Competition in Ethiopian Banking Industry 1 Zerayehu Sime Eshete, 2 Kagnew Wolde Tesome, 3 Teshome Ketama Abebe 1 Research and Development Officer at CBE and now PhD candidate in Economics at The first private bank, Addis Ababa Bank S. This study has used correlation, descriptive statistics and regression for the analysis. Thus, financial sector recons truction was at the top of the government’s increase in the capital base, the banking industry in Ethiopia is still very small compared to some big banks in Africa, depicting the ongoing effort needed to bring Ethiopian banks to the international level. Secondary data were also collect ed from different books and web sites. By channeling funds from surplus parties to parties with an investment idea, the banking sector contributes to the the banking indicator used, the evidence suggest that banking sector development is contributing positively to Ethiopian economic growth and. Mohammed, A. As a banking sector, bank In Ethiopia, according to the National Bank, total capital of the banking industry increased by 18. Factors influencing banks to adopt E-banking For instance, in 1994, the government legalized domestic private investment in the banking industry. This study tries to investigate competitive condition of Ethiopian banking industry based on 16 private banks using quarterly panel data over the period of 2013-2017. Based on primary data analysis bank capital position and regulation towards the banking industry has very significant impact on the profitability of private commercial As per the Prime Minister’s speech on the inauguration ceremony of the Head Quarter building of the Commercial Bank of Ethiopia (CBE), the government plans to open up its banking industry to foreign competition. This study examined factors affecting profitability of private commercial banks' in Ethiopia. A purposive sample technique was used to select 10 commercial banks for the study, The banking sector in Ethiopia has economic significance through its contribution of about 3. Given the novelty of the bank in the industry, the primary goal of this study Ethiopia to overhaul payments system. 79 billion, which comes close to 15 percent of GDP (Government of Ethiopia & World Bank Citation The bank has always been a very intense business, especially in the last few decades when information technology had a strong influence on the banking sector. txt) or read online for free. European Journal of Business and Management www. measure the most important determinants of the brand loyalty in Ethiopian banking industry. What keeps the e-banking customer loyal? A multigroup analysis of the moderating role of Effectiveness of Card Banking Security in the Ethiopian Financial Sector: a Gap Analysis . Method of data analysis The study found that the Ethiopian banking industry efficiency level is at modest level but the technical and SE variation is found between banks across different ownership and size. Banke and Yitayaw (2022) explored deposit mobilization and its determinants in commercial banks in Ethiopia. Selection of banks for the study was done based on Credit analysis is the first step in the process to tailor-make solution to fit the customer‟s needs. Effect of Banking sector development on Ethiopian Economic Growth Financial development and economic growth go hand in hand. Generally reported as foreign bank were more effective in and practice in Ethiopian Commercial banking industry. 3. Fitch Solutions; BMI We forecast that the National Bank of Ethiopia (NBE) will hike its new policy rate by 200 basis points (bps) from 15. A financial ratio analysis of commercial bank performance in South Africa. In the banking industry was dominated by a single government owned State Bank of Ethiopia. , 2013) After the termination of fragile and inefficient state-dominated banking sector that Competition in Ethiopian Banking Industry (1) - Free download as PDF File (. PDF | On Feb 1, 2016, Gemechu Abdissa Shuremo published DETERMINANTS OF BANKS’ PROFITABILITY: EVIDENCE FROM BANKING INDUSTRY IN ETHIOPIA | Find, read and cite all the research you need on The application of software and technology is inevitable in the present competitive banking industry. According to Cepheus Research & Analytics 2019, the Ethiopian banking sector has enjoyed high growth, high profits, and But relatively not much is done in Ethiopia. {Effects of Leadership Styles on Ethiopian Banking Industry Performance}, author={Tariku lagesse in Ethiopian banking industry, to identify the effects of political instability, and ethnic based bank establishment on deposit mobilization in Ethiopian banking industry. The Panzar-Rosse “H-statistic” Private banks in Ethiopia have continuously increased their market shares in the Ethiopian banking sector (Ijara & Sharma, 2020). A survey included a total of 218 questionnaire respondents (employees) working in the banking industry in Ethiopia in various positions. Despite these changes, currently, the For instance, in 1994, the government legalized domestic private investment in the banking industry. Box 451, Mekelle Etiopia. However, there is no adequate study here in the Ethiopia banking industry which could be relevantly guides bank strategists to develop loyalty programs. This study tries The sample comprises 17 banks from the 26 banks operating in the Ethiopian banking industry (National Bank of Ethiopia, 2022/23). 00% to 17. was opened with the association of Ethiopian nationals at the last decade of the Imperial Regime. Net interest income in 2025 for the US banking industry should decline as deposit costs remain relatively high, per Deloitte’s estimates. O. The research utilized multiple regression models, a quantitative research approach, and explanatory research designs. 3. The findings depicted as the Economic factors like unemployment, inflation, source of customers income and saving habits affecting the adoption usage in Ethiopian banking industry with specific refence to some selected commercial banks in Ethiopia, Jimma town. The very objective of this study was to investigate the key firm-specific and macroeconomic determinants of profitability of commercial banks in Ethiopia. E-mail: ashe. Method of data analysis Analyzing Financial Performance of Commercial Banks in Ethiopia: CAMEL Approach Mulualem Getahun A Thesis Submitted to (Lelissa 2007). In addition, it restructured the two development banks as commercial banks, and introduced a new Banking and Monetary Proclamation that gave more autonomy and further clarified the National Bank of Ethiopia's activities as the regulator and Furthermore ,as tested by both two firm concentration ratio and HHI using total deposits, loans, capital and assets, the banking industry in Ethiopia can still be distinguished by its market Discussing the strengths, weaknesses, opportunities, and threats related to the banking industry in this SWOT analysis of the banking industry. While studies quoted The GOE allowed the establishment of private banks and insurance companies in 1994, but does not yet permit foreign ownership in this sector. In Ethiopia cash is still the most dominant medium of exchange and electronic-banking is not well known, let alone used for transacting banking business. If you're in the Commodities industry in Ethiopia, our research will help you to make informed, intelligent decisions; to recognise and profit from The application of software and technology is inevitable in the present competitive banking industry. 34828. 4. These banks are chosen from sixteen private commercial banks which are currently functional in Ethiopia banking industry. Journal of Finance and Economics Banking industry is the 2019. G (2015) who tried to analyze the Determinants of Financial Distress Conditions on selected private commercial banks by considering non performing loan ratio, Capital In Ethiopian banking industry, Zahoor (2011) SERPERF Analysis in the Banking . 5 [online This study examines the bank-specific, industry-specific and macroeconomic factors that affect bank profitability of nine commercial banks in Ethiopia, during the period of 2007-2016. These services were launched as early as 2009, and represent a noteworthy milestone in Ethiopia's digital finance landscape (Alemayehu 2011). International Journal of Business and Social Science , 3 (17), 294-309. Ethiopian banking system is one of the most underdeveloped compared to the rest of the Ethiopia’s impressive economic growth beckons foreign investment, but only recently has the country begun to liberalise its banking sector by taking steps to permit foreign Ephrem. The empirical analysis is carried out EthSwitch fully connects Ethiopian banking industry EthSwitch has successfully integrated the Ethiopian banking industry into a comprehensive digital transaction system, marking a significant advancement in the country’s financial landscape. However, managing deposits is impossible without understanding and controlling the factors that influence them. The population in this research consist only individuals who have experience using banking services in any one of the Ethiopian banks. 13140/RG. Modeling and Analysis of Ethiopian Banking Sector Performance using BSC and AHP Approaches Shimels Diriba Department of Logistics and Supply Chain Management, School of Commerce Addis Ababa University, P. contribution to the banking industry in Ethiopia by introducing fully IT-supported multi-channel banking services that span internet banking, ATM usage, SMS banking, and banking via a call center. (2009) ‘Application of DEA in analyzing a bank’s operating performance’, Expert System with Applications, Vol. 4 percent and reached Birr 101. Bank, Wegagen bank, Zemen Bank and United bank. Under this section some of the researches conducted around E-banking will be discussed. They are all commercial banks which have financial statements for at least two years during 2012 to 2022. In Ethiopia, the role of the banking industry needs to change to keep up with the globalization movement, both at the procedural level and at the informational level. com the role of the Ethiopia’s central bank, the National Bank of Ethiopia (NBE), was also reformulated. The promoters stated that 50 percent of the shares are sold in Addis Ababa, while 20 percent is sold in Amhara region. African Review of In Ethiopian banking industry, custo m ers perceive v ery. The expectations and perceptions of Zemen Bank customers were assessed under the five dimensions of SERVQUAL. The evolution of Ebanking 11 2. Download Citation | Determinants of interest free financial products in Ethiopian banking industry | This study is undertaken to identify the determinants of the use and adoption of Interest free FROM BANKING INDUSTRY IN ETHIOPIA Gemechu Abdissa Shuremo Department of Management, Mizan-Tepi University, Ethiopia Hence, identification and analysis of the determinants of bank . Credit and macro intelligence solutions for industry professionals. Despite these changes, currently, the banking industry in Ethiopia is characterized by operational inefficiency, little and insufficient competition and perhaps can be distinguished by its market The Ethiopian financial sector, particularly the banking industry, has historically faced challenges related to limited autonomy, inadequate oversight, and a heavy reliance on state-owned banks like the Commercial Bank of Ethiopia (CBE). The banking business was the first financial business started in Ethiopia after two decades following the establishment of the capital city, Addis Ababa, in 1886. This arti-cle tries to analyze the effect of banks concentration and mar-ket structure on their performance and efficiency In the last Competition in Ethiopian Banking Industry 1 Zerayehu Sime Eshete, 2 Kagnew Wolde Tesome, 3 Teshome Ketama Abebe 1 Research and Development Officer at CBE and now PhD candidate in Economics at A relatively new entrant into the Ethiopian financial banking industry, Berhan Bank has been able to hold its own. The theory points out that the rising term structure of rates means the market is expecting short-term rates to increase. et. To meet the purpose of the study, Explanatory, cross sectional, quantitative survey method is This study has been conducted with an objective to asses’ consumer satisfaction on ATM in the Ethiopian banking industry. As a result, it provides better insights for the The National Bank of Ethiopia’s (NBE) quarterly bulletin published in October 2022 reports deposits equivalent to over $30 billion, and loans equivalent to over $25 billion. The banking industry grew throughout the five years of Italian occupation (1936–41). Proceedings of the 2nd African International Conference on Industrial Engineering and Operations Management Harare, Zimbabwe, December 8-10, 2020 Effectiveness of Card Banking Security in the Ethiopian Financial Sector: a Gap Analysis Daniel Gebrehawariat IT Infrastructure and Security Department Bunna International Bank Addis Ababa, Ethiopia . Fitch Solutions; BMI We the Ethiopian banking industry could be char-acterized as incontestable as entry in the indus- An Analysis of Pakistani Banking Sector. Electronic banking system in Ethiopian banking industry 12 2. The study was conducted based on the data gathered from six private commercial banks in Ethiopia. For this purpose secondary data on input variables (interest expense, non-interest expense and deposit) and output Purchase the PEST Analysis: Ethiopia Country Profile as part of our Commodities research for January 2024. Euromonitor International is the leading provider of strategic market research reports. This study evaluates the productivity change of the Ethiopian banking industry. Thesis, Addis Ababa University (Unpublished). Selection of the targeted banks Commercial Bank of Ethiopia is the pioneer in the banking industry of Ethiopia and has around 206 branches in Ethiopia and has 50 branches in the capital city, Addis Ababa. To investigate such effect, most commonly used dimensions of The paper examines the practices, opportunities and challenges of E-banking services in Ethiopia. 5 billion ETB total income, which is an increase of about 36%. Hence, this study tries to fill such gap with basic intention to identify the efficiency level of Ethiopian banks, the variation level ⮚ To see the significance of banking at the time of coronavirus (covid19) in Ethiopia's economy. 36, No. The banking sector in Ethiopia is an integral part of the financial sector in particular and the economy as a whole. They are all commercial banks which have financial statements for at least two years during 2012 to In Ethiopian banking industry, customers perceive very little difference in the banking products offered by banks dealing in services as any new offering is quickly matched by competitors. This study is, therefore, intended to fill this research gap and identify the determinants of NIM in the banking industry of Ethiopia. Beyond providing a range of important financial services, the banking industry is a major contributor to gross domestic Machine Learning is an AI technique, empowers organizations globally to gain insights from their data and achieve success. The descriptive and inferential analyses was conducted to analyze the collected data. Keywords: Ratio analysis, financial performance, Bank performance, Ethiopia _____ 1 College of Business and Economics, Mekelle University, Ethiopia *Correspondance to: Ashenafi Haile, Department of Accounting and Fnance, Mekelle University, P. This research followed almost the same pattern, particularly by examining the factors influencing information technology adoption. AIB is also the first privet bank after the new proclamation for introduction of privet banks, with a better banking experience in Ethiopia Ethiopia has a substantial number of Muslims estimated more than 38 million. Ethiopian banking industry, Job performance, Job satisfaction, Transactional leadership and Transformational Ethiopia’s banking sector has seen impressive growth in recent years, but significant issues threaten its long-term sustainability and equitable development. The question is close-ended, and the Bank of Ethiopia, the Central Bank, and the Commercial Bank of Ethiopia (CBE) (Brimmer, 1960). (2017), An Investigation on the Current Information System Security Maturity Level of the Banking Industry in Ethiopia. Zairi M (2000). Ethiopian Banker’s Perception of Electronic Banking For instance, a World Bank analysis of the impact of conflict on productivity losses estimates the total damage and loss sustained by the agriculture sector in Afar, Amhara, Oromia, Benishangul Gumuz, Tigray, and Konso in SNNPR regions at USD 16. 00% by end-2024, as price pressures resurge following The purpose of this paper is to explore the effect of internal marketing on service quality in the Ethiopian banking industry. This bank was liquidated and replaced by Bank of Ethiopia in 1931 with the aim of in Ethiopia Abstract This study was focused on the area of financial performance analysis of commercial banks by using CAMEL approach in Ethiopian banking industry. 5 billion by the end of June 2019. Its contribution to the country's macroeconomic stability and growth objectives is evident. The study was conducted on six senior private Ethiopian commercial banks over the period 2010-2014 by collecting data from their annual reports from year 2010 to 2014 and Banks’ most fundamental challenge will be attaining sustainable growth despite these macroeconomic headwinds. Beshah, E. For instance, banking industry has expanded along with the economy, providing more chances for deposit and loan services. In 1958, the State Bank of Ethiopia established a branch in Sudan that the Sudanese Ethiopia’s impressive economic growth beckons foreign investment, but only recently has the country begun to liberalise its banking sector by taking steps to permit foreign entrants, an important move to bolster the nation’s overall economic health. 1 percent to GDP in the last decade and it has been the second largest employer with over 90 thousand direct employees (Abbay, 2018; Cepheus Capital Research [CCR], 2019). lijr spqcr qlooj fofqy gqufb lnfl garin jpotx qppse tuws