The effect of electronic banking on profitability of the banking system

Document Type : Review Article

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Abstract

The growth of information and its influence on trade has changed banking procedures. With the development of e-commerce transactions through the electronic banking, we need to transfer funds and resources more than before and implementation of e-commerce would be impossible without electronic banking. In these conditions, the banks can more quickly adapt to their internal structures, to gain the full benefit, Otherwise, they will lose. The importance of banking is so high that in all development programs has been paid. Considering the importance and impact of electronic banking in the development of banking system, this article surveys the impact of electronic banking on bank profitability indicators. Therefore, annual statistics relating to the banking system for the period 2005-2015 and 30 cases of Iranian banks will be used. The method used to estimate is panel data. The results indicate that Indicators that are used to evaluate electronic banking, there is A positive relationship with profitability indicators ROA and ROE. 

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References

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