Resource Mobilization through Customer Deposits with special reference to Commercial Bank of Ethiopia: A Study on Wolaita Sodo and Hossana Towns

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Teketel Agafari Ansebo, Dipak S Gaywala


This study with the overall goal of determining factors contributing for resource mobilization through customer deposit with special reference to CBE had used both secondary data. The secondary data for the study on different variables had been taken from 2000 GC to 2020 GC. For this study several variables as dependent and independent were extracted from CBE documents.Descriptive summary statistics and multiple linear regression models were used for analyzing the data with one dependent variable and the five independent variables. Different diagnostic tests were tested to know whether the model was valid or not. All the analysis was performed using STATA version 13. Four of the five explanatory variables are found to be statistically significantly associated with the total deposit at. Namely; loan, number of customers, number of branches and interest rate. Only number of competitors is found to be statistically insignificant at but it is negatively related to total deposit. Model assumption checks like Normality, Constant Variance test (Homoscedasticity), Multicollinearity etc… had been tested. Finally after thoroughly identifying what affects resource mobilization through deposit, we came up with the following recommendation. The managing bodies should take care of those factors like no of customers by facilitating good customer care scenarios; opening new branches accordingly where and whenever there is demand; working on effective.

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