Factors Determining Commercial Bank Deposit An Empirical Study On Commercial Bank Of Ethiopia

The study had looked at the potential of the country regarding deposit mobilization byrntaking CBE as evidence. The study had used both primary and secondary data. Thernprimary data is collected by a means of interview and questionnaire. The secondary datarnfor the study were the values of dependent and independent variables. The study hadrnfound variables that can affect the total deposit of commercial banks. Three variables arernregressed with the dependent variable, i.e. total deposit, these variables include depositrnrule, inflation rate and bank branches. The data for these variables was collected fromrncommercial bank of Ethiopia, national bank of Ethiopia and central statistics authority ofrnthe sample year from 2000GC up to 20llGC. The multiple regression model isrnconstructed for the dependent variable and the three independent variables. Differentrndiagnostic tests are tested to know whether the model is valid or not, having the model isrnvalid the regression analysis and hypothesis testing is performed using Views software.rnAs a result of the hypothesis testing it was found that all the three variables can affectrntotal deposit. Branch expansion had positive and significant effect on total depositrnwhereas deposit rate and inflation rate had positive and insignificant effect on totalrndeposit. Finally the study had recommended what should be done to mobilize morerndeposits.

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