Browsing by Author "Mekdes, Dawit Tadele"

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    Affecting Deposit Mobilization; The Case Of Private Commercial Banks In Ethiopia Factors
    (A.A.U, 2020-12) Mekdes, Dawit Tadele; Dr. Degefa, Duressa
    The survival of every commercial bank is highly depends on the bank deposit because making of profits of these banks is determined by the strategies adopted by each bank to mobilize deposits from the public that is an input to earn income for most conventional banks. In order to make good strategies, yet, the banks should know what factors determine the deposit mobilization activity in the real world. As the result, the issue of banks deposit and its factors is crucial to the financial sector. Therefore, this study main objective is to identify and evaluate those factors affecting bank deposit in general by taking eight private commercial banks in Ethiopia as evidence the sampled private commercial Banks are Awash International Bank S.C, Bank of Abyssinia S.C, Wegagen Bank S.C, United Bank S.C, Nib International Bank S.C, Dashen Bank S.C, Cooperative Bank of Oromia and Oromia International Bank by using purposive sampling. Accordingly, the researcher adopts primary and secondary data similarly qualitative and quantitative (mixed) method of research approach was applied. Regarding to the qualitative data; questionnaire is used by using non probability sampling to gather information from the employees of selected private commercial banks particularly for those employees who actively participated in deposit mobilization tasks by using a census to study a population of 153 staff from this 127 was returned. Regarding to the secondary data; time series data covering 2014/15 – 2018/19, the data were assessed using explanatory method of analysis as well as the test for heteroskedasticity, autocorrelation and normality testing was done to know if the assumptions of CLRM violated or not. Second, developed model was a multiple linear regression equation with deposit as the dependent variable and explanatory variables are interest rate, inflation rate, number of bank branch, number of employee, gross domestic product, individual foreign remittance and exchange rate estimation was done using Ordinary Least Squares technique by using STATA 14 software The results from analysis showed that all the explanatory variables were correlated with the explained variable. Among these variables, interest rate is an important strategy for deposit mobilization; it is highly significant and has positive effect on deposit than others. Employees and Individual remittances from diasporas are also next to interest rate to significantly and positively affects deposit. The other variables have negative effects and can decrease private commercial banks deposit. And finally, the study had recommended what should be done to encouraging deposits growth by private commercial bank in Ethiopia for the benefit of the superior domestic deposit mobilization.