DETERMINANTS OF AGENCY BANKING UTILIZATION IN ETHIOPIAN COMMERCIAL BANKS

This study investigates the factors that affect utilization of agency banking in Ethiopian
commercial banks. Descriptive research design and quantitative research approach are adopted.
Primary data are collected using questionnaire from four purposively selected commercial banks
in Ethiopia; Commercial Bank of Ethiopia, Dashen Bank, United Bank and Lion International
Bank. Thus the researcher takes all 78 staffs working in agency banking department of four
banks via purposive sampling technique. Multiple regression analysis is used to analysis the
data. The study found that all independent variables (Regulation, Telecom, Security and
Training) have positive and significant impact on Agency Banking Utilization at 5% level of
confidence. The researcher recommended banks to consider the four dimensions (regulation,
telecom, security and training) are the major factors that affecting agency banking utilization and
should take vital measures in order to exploit the benefit of agency banking. Government also
should support banks by assist sufficient telecom infrastructure and issue feasible legal
frameworks to facilitate the operation and utilization of agency banking