Abstract:
This study investigates the factors influencing deposit growth in Ethiopian
commercial banks between 2010 and 2022. Ten senior banks were selected from a
pool of 31 active commercial banks. Secondary data was gathered from bank
annual reports and the National Bank of Ethiopia (NBE). Employing a quantitative
research approach and a balanced panel fixed-effects regression model, the study
analyzes both bank-specific and macroeconomic variables.
The findings highlight the positive and statistically significant impacts of branch
expansion, total loans and advances, net interest margin, bank liquidity, and bank
size on deposit growth. Conversely, bank profitability demonstrated a negative and
significant influence. While GDP, money supply, and inflation exhibited
insignificant positive effects.
Lastly depending on result of finding all commercial banks can always paying
their attention on bank specific factors rather than macro-economic factors
because deposit is highly affected by bank specific factors. From the macro
economic factors money supply have significant impact on deposit during issuing
of new notes government should a complain strong policy and procedure unless
money laundry(ML) ,financial terrorism(FT) and forged note(FN) may also
established they totally affect deposit of the banks.
