| Abstract: | The purpose of this study was to determine the factors affecting the growth of saving customers in Commercial Bank of Ethiopia; in the Case of Selected Districts Addis Ababa. In order to achieve this objective descriptive and regression analyses were performed. The target population wasemphasized on Commercial Bank of Ethiopia, specifically in selected four districts of Addis Ababa. Accordingly, six branches of Commercial Bank Ethiopia in Addis Ababa city were purposively selected for this study. Saving is a fundamental part of banking activity. Hence, it is critical to understand the nature of saving customers growth behavior in designing policies to promote savings and investment which in turn enhance economic growth through capital formation. This research empirically examines the determinants of customer saving in Commercial Bank of Ethiopia, particularly districts in Addis Ababa. The researcher adopted quantitative research approach.The data were gathered through questionnaire. The explanatory variables used in this study were service quality, bank accessibility, customer satisfaction, and customer loyalty. The effects of these variables on customer saving wereanalyzed using multipleregression analysis. Different diagnostic tests (test for assumptions of normality, test for linearity and homoscedasticity, test for no multicollinearity, test of independent of residuals)were conducted to check theappropriateness of the model. The diagnostic results show that none of the classical linear regression model assumption is violated. Among the independent variables, service quality significantly affect saving customers. Customer loyalty was also next to service quality and significantly affects Commercial Bank Ethiopia’s customer saving. Generally, the results of regression analysis reveal that all explanatory variableswere positively and significantly affectthe growth of customerssaving. The researcher recommends that Commercial Bank of Ethiopia should add values and enhance service quality, bank accessibility, customer satisfaction and customer loyalty to achieve the growth in saving customers. It is an indispensable tool for gaining competitive advantage and builds long- lasting and profitable relationships with its customers. |
