Impact of Online Banking on Financial Performance of Commercial Banks in Afghanistan

This study's primary objective was to examine the effects of online banking on Kabul commercial banks' financial performance. While addressing financial performance and online banking, the following question can be pondered. What is the impact of online banking on the financial performance of commercial banks in Afghanistan? Furthermore, the primary data were examined by using SPSSv.24's descriptive and regression methods. In addition, different regression assumptions, estimating methods, specification checks, and other tests were performed on econometric models. According to the findings of random effect regression analysis, capital sufficiency and cost-effect were closely related to banks' financial performance. The study finds that online banking boosts the financial performance of commercial banks in Afghanistan. Inversely, there is no statistically significant correlation between the financial success of banks in Afghanistan and online banking or bank size. Additionally, there is a plethora of literature and studies on contemporary online banking and financial performance in different countries, However, there is no study on the implication of online banking on the financial performance of financial banks in Afghanistan. Furthermore, the present study found no banking law in Afghanistan to deal with financial technology, digital currency, and online banking. Hence, the present study is expected to enrich the knowledge of online banking and financial performance in the commercial bank of Afghanistan.