Factors Affecting Deposit Mobilization The Case Of Private Commercial Banks In Ethiopia The Case Of Awash Bank

Abstract

The main purpose of this study was to identify Factors affecting deposit mobilization of private commercial banks in Ethiopia the case of Awash bank. the researcher used both descriptive and explanatory research design. The target population was 252 respondents including all employees of the managing bodies. The researcher used probability sampling specifically stratified sampling method to collect data from respondents for the number of the population was huge and difficult to manage. Data were collected using five Point Likert-Scale close ended questionnaires, 235(93%) questionnaires were properly filled and returned on time. Descriptive statistics like mean, frequency, aggregative mean and inferential statistics like regression and other statistical assumptions were used to analyze the collected data from respondents and SPSS version 24 was used to analyze collected data. The finding results indicated that the mean value for Institutional factors, competency, technology, expansion of branches and deposit mobilization strategy were below average which indicate that there was limitation in implementing these variables in implementing these factors. The correlation result indicated that there were positive relationship between all of independent variables and the dependent variable. Therefore researcher rejects all null hypotheses as well as accepted alternate one based on the coefficient of regression/correlation. This implies that any increase or decrease on the independent variable will bring corresponding change on deposit mobilization and vice versa. And it’s found that the the coefficient of determination indicates that independent variables has a 70.3 % influence on the dependent variable while the remaining 29.7% is influenced by factors which are not covered in this study. Finally, the researcher recommended that Awash bank should focus on all selected independent variables limiting the implementation of these selected variables for they have contributing factor to increase or decrease implementation of deposit mobilization