“Factors Affecting Deposit Mobilization of the Bank in Ethiopia, the Case of Cooperative Bank of Oromia S.C”

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.