Determinants of Commercial Bank Deposits in Ethiopia: The Case of Commercial Bank of Ethiopia
| dc.contributor.advisor | Dr. Salehu A. | |
| dc.contributor.author | Habtamu Abrham | |
| dc.date.accessioned | 2023-12-11T05:32:33Z | |
| dc.date.available | 2023-12-11T05:32:33Z | |
| dc.date.issued | 2023-05-05 | |
| dc.description.abstract | The study focuses on deposit mobilization in commercial banks in Ethiopia and aims to identify the factors that influence this process. Deposit mobilization is crucial for banks to increase liquidity, meet credit demands, and promote economic growth. However, there is a limited understanding of deposit mobilization in Ethiopia, creating a gap in empirical evidence and hindering policymaking. The study utilizes an explanatory research design and a quantitative approach. It analyzes twenty-two (22) years of secondary data from audited financial statements of the Commercial Bank of Ethiopia, obtained from the NBE database. The factors examined include return on assets (ROA), capital adequacy ratio (CAR), gross domestic production (GDP), liquidity ratio (LR), loan to deposit (LD), political stability (PS), and inflation rate (IR). The findings reveal important relationships between these factors and deposit mobilization. GDP growth shows a positive association with deposits, indicating that factors beyond economic growth influence deposit decisions. Inflation has a negative impact on deposits mobilization, while political stability exhibits a negative influence, emphasizing the importance of a stable political environment for depositor confidence. Financial performance metrics, particularly ROA and CAR, significantly affect deposit levels, with higher profitability and capital adequacy ratios attracting more deposits. Additionally, a positive relationship exists between the loan to deposit ratio and deposits, indicating that higher loan demand can lead to increased deposits. Based on the findings, several recommendations are provided. Enhancing political stability is crucial to instill confidence among depositors. Strengthening financial performance, particularly ROA and CAR, can attract more deposits. Customer education and outreach initiatives are suggested to increase awareness and trust in deposit products. Diversifying deposit offerings can cater to diverse customer needs and preferences. | |
| dc.identifier.uri | http://etd.aau.edu.et/handle/123456789/541 | |
| dc.language.iso | en | |
| dc.publisher | A.A.U | |
| dc.subject | Return on Asset, Political Stability, Loan To Deposit, Inflation Rate, Commercial Bank of Ethiopia (CBE) | |
| dc.title | Determinants of Commercial Bank Deposits in Ethiopia: The Case of Commercial Bank of Ethiopia | |
| dc.type | Thesis |