Abstract:
Currently, banking industry is failed under a series challenges that adversely affects deposit
mobilization and retain the existing potential customers in one of commercial banks for the
reality of difficult competitive increased in banking industry. The study intended to assess the
factors affecting the deposit mobilization of the commercial banks in Ethiopia, the case of
Cooperative Bank of Oromia S.C through emphasized on objectives to assess the challenges
affecting resource mobilization of the cooperative Bank of Oromia S.C, to assess the impact
of awareness of the society, convenience of bank’s office, branch expansion and service
quality on resource mobilization or total deposits of CBO. The study area of the research
has concentrated only on business unit of head office, four districts and under those districts
60 branches has selected purposively through considered low level status of deposit
mobilization to further assess the challenges besides of those low performance of resource
mobilization. The total population of study area were 672 and the researcher used Yamane
(1967) sampling size determination, from total population size, sample size of 251 was
determined to conduct research questionnaire and the respondents was conducted with using
non-probability of convenience sampling methods
rely
on give priority to seniority
position and long duration in the bank’s industry. Accordingly, the research questionnaires
were distributed for 251 respondents but only 210 responded at meaning time. The research
study used both primary and secondary source of data. In the same way, quantitative and
qualitative data were used. Primary data was collected from each sample of office
managers, directors, Customer relation Manages, Customer service Officers and employees
using questionnaires Descriptive data analysis has been used to describe the behavior of
individual variables. The analysis indicates that awareness creation, institutional factors,
and economic conditions were the common variable that in critical influencing deposit
mobilization. The study result showed that explanatory variables were articulated about
83.10% of deposit mobilization influenced while approximately 16.99% is explained by other
factors.
