Ameha Tefera Tessema
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An Interest Rate Commission Agent Banking System
Ameha Tefera Tessema , Jan Walters Kruger -
Testing performance of an interest rate commission agent banking system (AIRCABS)
Ameha Tefera Tessema , Jan Walters Kruger doi: http://dx.doi.org/10.21511/bbs.12(3).2017.09Banks and Bank Systems Volume 12, 2017 Issue #3 pp. 113-141
Views: 1055 Downloads: 198 TO CITE АНОТАЦІЯThis paper sought to analyze data and interpret statistical results in testing the performance of an interest rate commission agent banking system. Primary and secondary data were collected from banking industry in Ethiopia to test the research hypotheses, credit risk and liquidity crunch have no impact on AIRCABS, investor loan funding has a positive impact on profitability and sustainability of AIRCABS and discrete market deposit interest rate incentive has a positive impact on stable deposit mobilization in a bank. To test the hypothesis, statistical tools such as Cronbach’s alpha, Kuder-Richardson (KR-20), canonical correlation and multinomial logistic regression were used. The result showed that credit risk and liquidity crunch have no effect on an interest rate commission agent banking system, investor loan funding has a significant strong relationship with profitability and sustainability of AIRCABS and discrete market deposit interest rate incentive has also a significant strong relationship with stable deposit mobilization. This led to a conclusion that an interest rate commission agent banking system (AIRCABS) model is viable and reliable.
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