Factors Determining Commercial Bank Deposit: An Empirical Study on Commercial Bank of Ethiopia
No Thumbnail Available
Date
2014-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
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.
Description
Keywords
commercial bank deposit in Ethiopia