African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4180

Article in Press

Factors Determining Commercial Bank Deposit: An Empirical Study on Commercial Bank of Ethiopia.

Wogaso Woru and Abraham Woru

  •  Received: 28 May 2021
  •  Accepted: 14 February 2023
To make profits and satisfy the needs of the respective owners is the core objective of commercial banks in Ethiopia. In order to make good strategies, however, the banks should know what factors determine the deposit mobilization activity in the real world. Therefore, this study was interested to identify and evaluate those factors determining Commercial bank deposit by taking Commercial Bank of Ethiopia as evidence. The study was used both primary and secondary data. The primary data was collected by a means of questionnaire from the employees of sampled commercial bank of Ethiopia selected branches regarding the current social and political instability (shocks), technology and awareness of society. The Target populations are all selected districts under commercial bank of Ethiopia. Currently out of the fifteen districts exist under CBE, three districts have purposively selected for the study. Six variables are be regressed with the dependent variable, i.e. total deposit, these variables includes four non-bank specific variables (inflation rate, exchange rate and GDP) and three bank specific variables (deposit rate, bank branches and liquidity). The data for these variables are collected from commercial bank of Ethiopia, National Bank of Ethiopia and Central Statistics Authority of the sample year from 2000GC up to 2018GC. The multiple regression models were constructed for the one dependent variable and the six independent variables. Different diagnostic tests was test to know whether the model is valid or not, having the model is valid the regression analysis and hypothesis testing was performed using E-Views software.

Keywords: Bank Deposit, Commercial Banks, Commercial Bank of Ethiopia, Determinant of Bank Deposit