Challenges of Deposit Mobilization for Private Commercial Banks in Ethiopia (The Case of Awash International Bank S.C.)

No Thumbnail Available



Journal Title

Journal ISSN

Volume Title


Addis Ababa University


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.



of Deposit Mobilization for Private Commercial Banks