An Assessment of the Role of the Commercial Bank in Savings Mobilization and Utilization in Post Revolutionary Ethiopia

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The main concern of this thesis has been to assess the role of the Commercial Bank of Ethiopia in savings mobilization and utilization. The necessary information was mainly obtained from secondary sources. Simple techniques of analysis such as percent ages, graphical representations, ratios, etc., are used to analyze the data. The results indicate that the performance of the Bank in savings mobilization and utilization has, generally, been inadequate. The in adequacy of the Bank's savings mobilization effort is exhibited by the low levels of the banking ratio, changes in to t a l bank liabilities as percentage of GNP, and by the ratio of bank deposits to money supply. The inadequacy of the utilization of savings is indicated by the absence of clear credit policy, excess liquidity reserve , the declining trend of loan-deposit ratio, and by the high security requirements. The paper suggests some changes in the existing policy of the Bank. Thus, both lending and deposit interest rates, credit and branch expansion policy, and security requirements have to be changed in order for the Bank to play the maximum role in the growth of the Ethiopian economy.



Commercial Bank, Savings Mobilization