Factors That Affect Deposit Mobilization in Bank of Abyssinia
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Date
2024-03-23
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Publisher
AAU
Abstract
Deposit mobilization is the collection of cash or funds by a financial institution from the public
through its current, savings, fixed, recurring accounts and other specialized schemes. Bank
Deposit is affected by both exogenous and endogenous factors. Exogenous can be country
specific and bank specific factors. Endogenous factors can be controlled by the banking system.
The objective of this study was on factors affecting deposit Mobilization in Bank of Abyssinia
using primary data. Purposive sampling technique was used. The study included all grade two,
grade three and corporate branches of Abyssinia Bank. Primary data source was used to collect
data from Bank of Abyssinia senior management staff. The collected data was entered, coded,
and interpreted by using Stastical Package for Social science software 25. Linear regression
analysis has been used with 95%CI with p value <0.05.In this study the dependent variable
was bank's deposit and independent variables were deposit mobilization strategy, Gross
domestic product, Bank profitability and number of branch opened. Different diagnostic tests
were used to know whether the model was valid or not