Challenges of Deposit Mobilization for Private Commercial Banks in Ethiopia (The Case of Awash International Bank S.C.)
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Date
2015-10
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Addis Ababa University
Abstract
This study intends to identify the challenges in deposit mobilization for private banks in
Ethiopia by concentrating the case on Awash International Bank s.c, Descriptive method
particularly survey design approach was adopted for the study. The survey was conducted
with staff individuals working in Awash International Bank s.c at different positions
using questionnaire. In addition, the study used unstructured review of documents and
records held by other commercial banks and NBE. The study identifies that AIB is
registering a continuous deposit growth for the last few years. Individuals, business
organizations and NGOs are the major source of deposit for AIB. The findings of the
study show that AIB and other private banks are operating in a dynamic and highly
competitive environment and there is high possibility of catch-up and by-pass among
these banks. Also, private commercial banks should prepare for the inevitable stiff
competition that will arise from local and with the eminent future entrant of foreign
banks. By doing so, they can solve the paradox of the liquidity problem and the unbanked
resources.
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of Deposit Mobilization for Private Commercial Banks