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.<b>Variables</b><b><i>Bank Stability (ZS):</i></b> Computed using the Z-score to measure stability.<b><i>Financial Inclusion Index (IFI):</i></b> Developed using two-stage Principal Component Analysis (PCA) with 10 conventional and 5 digital indicators.<b><i>Loan to Deposit Ratio (LDR):</i></b> Computed based on the loan to deposit ratio.<b><i>Provision to Loan (PL):</i></b> Computes the loan loss provision ratio.<b><i>Natural Logarithm of Total Assets (lnTA):</i></b> Logarithmic form of total assets.<b><i>Capital Adequacy Ratio (CAR):</i></b> Computed by Tier-1 capital and Tier-2 capital divided by risk-weighted assets.<b><i>Income Diversification (IND):</i></b> Computed based on the non-interest income to total income ratio.<b><i>Operational Efficiency Management (EF):</i></b> 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).<b><i>Real Lending Interest Rate (RLIR):</i></b> Inflation-adjusted interest rate.<b><i>GDP Growth Rate (GDP):</i></b> 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.<br><br>