Factors Determining Commercial Bank Deposit: An Empirical Study on Commercial Bank of Ethiopia

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Addis Ababa University


The study had looked at the potential of the country regarding deposit mobilization by taking CBE as an evidence. The study had used both primary and secondary data. The primary data is collected by a means of interview and questionnaire. The secondary data for the study were the values of dependent and independent variables. The study had found variables that can affect the total deposit of commercial banks. Three variables are regressed with the dependent variable, i.e. total deposit, these variables include deposit rate, inflation rate and bank branches. The data for these variables was collected from commercial bank of Ethiopia, national bank of Ethiopia and central statistics authority of the sample year from 2000GC up to 2011GC. The multiple regression model is constructed for the dependent variable and the three independent variables. Different diagnostic tests are tested to know whether the model is valid or not, having the model is valid the regression analysis and hypothesis testing is performed using EViews software. As a result of the hypothesis testing it was found that all the three variables can affect total deposit. Branch expansion had positive and significant effect on total deposit whereas deposit rate and inflation rate had positive and insignificant effect on total deposit. Finally the study had recommend what should be done to mobilize more deposits.



commercial bank deposit in Ethiopia