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Research Article
Effect of E-Banking Service on Financial Performance of Commercial Banks: A Case of Selected Private Commercial Banks in Ethiopia
Abebe Tilahun Kassaye*,
Anteneh Mengist Alamirew
Issue:
Volume 14, Issue 2, June 2025
Pages:
45-57
Received:
18 April 2025
Accepted:
4 May 2025
Published:
6 June 2025
DOI:
10.11648/j.jbed.20251002.11
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Views:
Abstract: This study examines the impact of e-banking services on the financial performance of selected private commercial banks in Ethiopia. It focuses on the roles of ATM, POS, Internet Banking (IB), Debit Card (DC), and Mobile Banking (MB) services. Financial performance is evaluated using Return on Assets (ROA) and Return on Equity (ROE) as key indicators. A panel dataset was collected from six purposely selected private commercial banks: Awash Bank S.C., Bank of Abyssinia, Dashen Bank, Cooperative Bank of Oromia, United Bank, and Zemen Bank S.C., covering the period from 2018 to 2023. Utilizing a quantitative approach and employing both descriptive and explanatory research designs, the study applies fixed and random effects regression models estimated with E-Views 13. The findings indicate that POS terminals have a significant negative effect on both ROA and ROE, suggesting that investments in POS infrastructure may not be generating the expected financial returns. In contrast, ATMs, debit cards, and internet banking services exhibit a significant positive impact on both profitability measures, highlighting their effectiveness in enhancing bank performance. Interestingly, mobile banking shows a mixed effect; it positively influences ROA but negatively and significantly affects ROE, indicating potential inefficiencies or cost challenges in mobile banking deployment. This study contributes original insights to the existing literature by providing context-specific findings from Ethiopia, particularly regarding the differing effects of mobile and POS banking services compared to previous research. It enriches the discussion on the strategic role of digital banking technologies in shaping the financial outcomes of banks operating in emerging markets.
Abstract: This study examines the impact of e-banking services on the financial performance of selected private commercial banks in Ethiopia. It focuses on the roles of ATM, POS, Internet Banking (IB), Debit Card (DC), and Mobile Banking (MB) services. Financial performance is evaluated using Return on Assets (ROA) and Return on Equity (ROE) as key indicator...
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Research Article
Reform of the Global Monetary System: Supranational Currency GES
Volodymyr Ognevyi*
Issue:
Volume 14, Issue 2, June 2025
Pages:
22-33
Received:
25 February 2025
Accepted:
1 April 2025
Published:
14 April 2025
DOI:
10.11648/j.eco.20251402.11
Downloads:
Views:
Abstract: The current crisis of the global monetary system forces the world community to search for ways of its reform. The focus is, first of all, on the issue of a qualitatively new international currency. In the context of this problem, a project is presented for the reincarnation of the Keynesian idea of an "objective standard of the value of a composite commodity", which in this case is the combined grain of the International Grains Council (IGC), with the aim of creating on its basis a supranational monetary unit GES (Grain Equivalent Standard) as an exchange rate benchmark /measure of value/ of national currencies plus for practical use as an international payment and reserve instrument. Since the movement of the market value of IGC grain is in the trend of the long-term movement of the value of the prevailing mass of commodity products, the new monetary architecture assumes, in essence, the binding of the GES currency to the general price trend of the world economy, which guarantees the stability of this currency in terms of purchasing power in the long term. – Guarantee of stability of global finances. Two options for reforming the global monetary system are proposed. The first option involves the creation of a global currency GES based on the weighted average value (in US dollars) on the world market of the IGC grain standard. – A symbolic currency, devoid of its own monetary base, is used as a measure of value and an international unit of account, an analogue of the SDR. The second option involves the creation of a global GES currency on its own monetary base, value-formatted by the global economy and attached to the weight of the IGC grain standard similar to the gold-dollar standard. – The currency is quite real, autonomous (independent of national currencies), used as a measure of value, a full-fledged means of monetary circulation, with the exception of bank lending. The first option involves linking the world currency to the market value of the IGC grain standard, the second – its direct value link to the weight of the IGC standard. Reforming the monetary system is designed to "anchor" national currencies (including the US dollar) on a solid material-value basis of the global economy, calm the emission-monetary bacchanalia in the world, stabilize the system of international settlements and payments, normalize equivalent commodity exchange in world trade, clearing pricing from pseudo-value falsity.
Abstract: The current crisis of the global monetary system forces the world community to search for ways of its reform. The focus is, first of all, on the issue of a qualitatively new international currency. In the context of this problem, a project is presented for the reincarnation of the Keynesian idea of an "objective standard of the value of a composite...
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Research Article
Impact of Credit Access on Household Poverty: A Case of Smallholder Farmers in Malawi
Richard Zimani*,
Regson Chaweza,
Jacob Mazalale
Issue:
Volume 14, Issue 2, June 2025
Pages:
34-44
Received:
17 March 2025
Accepted:
2 April 2025
Published:
27 April 2025
Abstract: This study evaluates the impact that access to credit has on welfare of smallholder farmers in Malawi in order to address the gap left in previous studies concerning smallholder farmer’s access to credit. The study employed data from Malawi’s Integrated Household Survey 2019/2020 and used the Heckman Selection model to examine the impact of credit access on welfare of smallholder farmers in Malawi. It employed the Heckman Selection Model, which was deemed applicable since the selection to participate in credit programmes is typically non-random. Natural log of daily households’ consumption from the 2020 poverty report data by the National Statistics Office was used as a proxy for household welfare. The results of the study indicate that financial institutions, residential area, employment, distance to town and social cash transfers received per household of every smallholder farmers had an impact on the selection into the credit Programme. It also established that household size, household head education and household head sex contribute to the state of household welfare poverty. In light of this, the study recommends that policymakers expedite the operationalization of credit programmes with the intent to increase participation by improving policies such as the agricultural credit Policy and Action Plans. There should also be an increase in adult literacy programmes and development of credit institutions that target smallholder farmers in general.
Abstract: This study evaluates the impact that access to credit has on welfare of smallholder farmers in Malawi in order to address the gap left in previous studies concerning smallholder farmer’s access to credit. The study employed data from Malawi’s Integrated Household Survey 2019/2020 and used the Heckman Selection model to examine the impact of credit ...
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