ASSESSING FACTORS INFLUENCING RESOURCE MOBILIZATION: THE CASE OF ABAY BANK S.CO

Abstract

The main objectives of commercial banks are collecting money/mobilizing resources) from the public and lend it back. This two mutual duties are interdependent, as the main income of commercial banks is generated from interest income. To survive in the industry the bank must mobilize more money than before. The bank’s management should formulate good strategies for this duty based on findings that influence their deposit. This paper tries to investigate factors influencing the deposit mobilization of Abay Bank S.co. Data were collected from primary and secondary sources to examinedeterminants of deposit mobilization. Data were analyzed using SPSS software. Results reveal that branch expansion and general inflation are the most significant factors of deposit volume. Deposit interest rate was found to have moderate influence on deposit volume, but real GDP growth did not have statistically significant influence. The researcher recommends the bank should keep on opening branches in potential areas of the country and improve service excellence.