Factors Affecting Deposit Mobilization of Commercial Banks in Ethiopia in Case of Bank of Abyssinia S.C

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Deposit is one of the resources financial institutions highly motivated to mobilize the liquid asset that is found in the treasury of the bank and which is ready to be dispensed to whom in need. The deposit mobilization of the banks can be affected by lots of different factors. This study tried to fill the gap that considering there are more factors that are as significant as the major commonly known factors; interest rate, inflation rate, exchange rate which affect deposit mobilization such as; emerging banks which are ethnic based, permit of foreign well-organized banks in order to be established and the impacts which result from new NBE proclamations. The general objective of the study is to examine the factors affecting deposit mobilization in commercial banks of Ethiopia in the case of BoA S.C. A mixed methods research approach underpinned by a pragmatist research philosophy, using predominantly quantitative methods with some qualitative elements added after analysis of the quantitative data to further explain key findings of the research. This study has been conducted through all the four grade branches of BOA (from Grade 1-3 and corporate branch) by selecting four branches (one from each) and district and head office staffs. As branches with same grade are homogenous in all aspects because of the bank’s standard, and since they all possess a same organizational structure, behaviour and culture plus working environment four branches will be selected randomly. Descriptive and inferential techniques have been adopted for analysis of data collected from questionnaire respondents. The study shows that the factors that effect of deposit movement were the human capital, deposit mobilization strategy, interest rate, product and services, and government roles and political conditions. as a result, adopting strong strategic plan which is measurable and feasible aligned with continual review of the dynamic market could help the bank to mobilize the resources which the bank highly in need of it and helps them to deal with the dynamic business environment.



Commercial Banks, Ethiopia, Bank of Abyssinia S.C