| Abstract: | Deposit mobilization is a fundamental and critical part of banking activity. Understanding the nature of Deposit Mobilization behavior is critical in designing policies to promote savings and investment which in turn enhance economic growth through capital formation. Accordingly, this paper empirically examines the determinants of Private commercial banks deposit mobilization in Ethiopia for the periods 2009-2019. In order to achieve these objectives, the study adopts quantitative data from National Bank of Ethiopia (NBE), Ministry of Finance and Economic Cooperation (MOFEC), Central statistical Authority (CSA), World Bank website. The Target population was selected private commercial banks that engage in commercial activities and registered by National Bank of Ethiopia to act. Consequently, eleven banks, out of sixteen private commercial banks in existence as at June 2019, have purposively been selected for the finding. Different diagnostic test was performed to know whether the model is valid or not. All the tests were valid and eventually regression analysis was performed using SPSS version 20 software. The result from regression analysis showed that Deposit Interest rate, exchange rate, number of bank branches was significantly and positively correlated with total deposit, Money supply, bank liquidity ratio was significantly and negatively correlated with the total deposit; Inflation rate was insignificantly and negatively correlated with the banks total deposit and per capital income was positively and insignificantly correlated with deposit. Finally result from the study. And finally, the study had recommended what should be done to encouraging deposits by Private Commercial bank of Ethiopia for the benefit of the domestic deposit mobilization. |
