Dataset for financial inclusion and stability in Ethiopia case

This dataset examines financial inclusion and bank stability in Ethiopia, containing panel data from 17 commercial banks over the period 2015-2023. In 2015, there were 17 commercial banks in Ethiopia but to maintain confidentiality, the names of commercial banks have been anonymized and are referred to by generic labels: 1, 2, 3, 4..., and 17. This process allows the dataset to be analyzed and shared openly in support of reproducibility and transparency in research.

Variables

Bank Stability (ZS): Computed using the Z-score to measure stability.

Financial Inclusion Index (IFI): Developed using two-stage Principal Component Analysis (PCA) with 10 conventional and 5 digital indicators.

Loan to Deposit Ratio (LDR): Computed based on the loan to deposit ratio.

Provision to Loan (PL): Computes the loan loss provision ratio.

Natural Logarithm of Total Assets (lnTA): Logarithmic form of total assets.

Capital Adequacy Ratio (CAR): Computed by Tier-1 capital and Tier-2 capital divided by risk-weighted assets.

Income Diversification (IND): Computed based on the non-interest income to total income ratio.

Operational Efficiency Management (EF): Measured using Data Envelopment Analysis (DEA) with five input variables (salary and benefits, provisions, general expenses, branches, and deposits) and two output variables (net interest income and non-interest income).

Real Lending Interest Rate (RLIR): Inflation-adjusted interest rate.

GDP Growth Rate (GDP): Annual percentage change in GDP.

This dataset provides comprehensive insights into the relationships between financial inclusion and bank stability, supporting future research and policy formulation.