Factors Determining Commercial Bank Deposit: An Empirical Study on Commercial Bank of Ethiopia
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Date
2012-06
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A.A.U
Abstract
The study had looked at the potential of the country regarding deposit mobilization by
taking CBE as 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
rule, 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 20llGC. 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 Views 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 recommended what should be done to mobilize more
deposits.
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Keywords
Commercial Bank, Factors Determining