The Effects of Financial Innovation on the Financial Performance of Commercial Banks in South Sudan

Abstract

The purpose of the study was to assess the effect of financial innovation on commercial bank’s financial performance as the key players in the banking sector over a period of 5 years. South Sudan’s financial system has been going through transformations from foreign commercial banks which come with advanced technology. The study used a casual research methodology and studied 16 commercial Banks registered with the central bank of South Sudan for January 2009- December 2013. The findings indicate that return on asset (ROA) recorded a mean of 3.2534 with standard deviation of 1.2548. The average number of daily transactions using ATM for the commercial banks during the study period was 156,547 with standard deviation of 20,51. It was clear that adoption of financial innovation resulted in strong financial results of commercial banks in South Sudan.