An Assessment of the Role of the Commercial Bank in Savings Mobilization and Utilization in Post Revolutionary Ethiopia
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Date
1989-06
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A.A.U
Abstract
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.
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Keywords
Commercial Bank, Savings Mobilization