Abstract:
The study aimed to examines the factors affecting deposit mobilization of Hibret Bank
specifically on branches of Addis Ababa. Both primary and secondary data were used in the
research to provide better solution through analysis. The Primary data was collected by using
closed ended questionnaires. While the secondary sources of data were extracted from annual
reports of Hibret Bank, data from National Bank of Ethiopia, from Central Statistical Authority,
publicized thesis papers, journals, peer reviews, websites, manuals and bulletins. The targeted
population of this study was selected from Hibret Bank S.C branches found in Addis Ababa.
From those selected branches the questionnaires were distributed to senior clerical staffs such
as branch managers, customer service managers, senior customer service officers and customer
service officers. Quantitative and qualitative research approach is adopted in this research. The
method of data analysis in the study was descriptive statistics, correlation and linear regression
methods. As a result, the five years deposit performance of the bank indicates that total deposits
of each year increased because the bank worked hard on branch expansion which is identified in
this study as one of the independent variables that contributed for deposit mobilization. Five key
independent variables, namely: Inflation, Number of bank branch, Interest Rate, Government
policies, and saving culture was identified as factor of deposit mobilization for Hibret Bank. The
results revealed that, different diagnostic like R-squared and adjusted R- squared values are
tested and shown as the bank’s deposits performance moves in line with the independent
variables. Also, the P value indicates P < 0.05 that is significance and the error is zero. Hence,
there is a relationship between the dependent variable (deposit) and independent variables. The
correlation test results reveal that independent variables such as Inflation, Number of bank
branch, Interest Rate, Government policies, and saving culture are positively and statistically
significant on the bank deposit growth. Finally the study concluded that, deposit mobilization is
very crucial for banking business; Hence, Hibret bank should be vigilant in applying the
aforementioned independent variables to attract and retain more deposits and deposit customers
