Regional Bank Establishment And Deposit Mobilization In Ethiopia

The objective of the study was to assess Regional Bank Establishment and Deposit Mobilizationrnin Ethiopia. More specifically, to find out the role of government policy on deposit mobilizationrnin Ethiopian banking industry, to identify the effects of political instability, and ethnic basedrnbank establishment on deposit mobilization in Ethiopian banking industry. Descriptive researchrndesign was employed. The sample size of this study was 370. This study used a statisticalrnanalysis program called Statistical Package for the Social Sciences (SPSS – Version 23). Thisrnstudy found that the government policy and financial system of Ethiopia is not facilitating depositrnmobilization in the private bank of the country. Establishing, and naming of private banks inrnEthiopia with the name of a specific ethnic group, the result showed that these kinds of trendrnhave adverse consequences. This study recommended that when private banks are established,rnthey should consider non ethnic based establishment to mobilize deposits as much as possible.

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