Ethiopian Commercial Banks Branch Expansion And efficiency

Banks are a vital parts of a nation's economy that catalyzed Economic growth through facilitate spending and investment in the economy.Bank institution is one and the top from the major financial institutions in Ethiopia.The number of all branches of the industry including public banks increased from year to year aggressively.Thus, the overall objective of this study was to investigate effect of branch expansion on cot efficiency Ethiopian commercial banks.Accordingly, from the population, Commercial banks operating in the country a total of 18, among these, 2 public and 16 private commercial banks (a total of 14 commercial banks) were included in the study period 2010/11-2018/19 based on non-probability, purposefully sampling method. The research used the price of labor, prices of capital,Number of branches, annual inflation rate, real GDP growth, Total loan output, management performances, market share, capital adequacy ratio,liquidity risk, prices of deposit and total securities variables to measure cost efficiency.To this end, the study used secondary data from the NBE, balance sheets and income statements of individual commercial banks nine year data obtained .