ASSESMENT OF THE DEPOSIT MOBILIZATION PRACTICES THE CASE OF BANK OF ABYSSINIA S.C

Abstract

This study intends to assessment the deposit mobilization practice the case of Bank of Abyssinia S.C. Descriptive analysis techniques approach was adopted for the study. Employees having more experience in city branches and head office were selected for data collection. The research has used 100 questionnaires for employees of BOA and structured interview discussion for the management of Bank of Abyssinia Share Company. The population size of the study is 504 clerical staffs of BOA those in Addis Ababa and Sampling method of the primary data is stratified random sampling, and reviewed five year annual report of Bank of Abyssinia S.C. Excel software was used to analyze the questionnaires and describe the result. The study identifies that BOA is registering a continuous deposit growth for the last few years. From three major types of deposit saving deposit accounts more than half of BOA's total deposit. The findings of the study show that BOA is operating in a dynamic and highly competitive environment, doesn’t offer different products to its customers, the bank tries to adopt quality customer service, aggressively promoting its service, sales officers are effective by increasing account number, government law and regulation is the challenge to mobilize deposit. Finally bank of Abyssinia were recommended to provide excellent customer service, evaluate the existing products and develop new product types which customized to the needs of different target groups, to make efforts and awareness creation campaigns to have well informed society, use advanced technology, increase its branch number, to arrange and apply incentive program for new depositors and the bank must be focused in doing with exporters and foreign banking agents to have enough foreign currencies which attracts potential depositors.