CHALLENGES OF DEPOSIT MOBILIZATION FOR PRIVATE COMMERCIAL BANKS IN ETHIOPIA: THE CASE OF EAST BALE AWASH BANK BRANCHS

This study intends to identify the challenges in deposit mobilization for private banks in Ethiopia by concentrating the case on Awash Bank S.C, Descriptive method particularly survey design approach was adopted for the study. The survey was conducted with staff individuals working in Awash Bank S.C at different positions using questionnaire. In addition, the study used unstructured review of documents. The study identifies that AB is registering a continuous deposit growth for the last few years. Individuals and business organizations are the major source of deposit for AB. The result of the study showed that saving habits, Inflation unstable, Competition among banks, Branch expansion, Profitability, Bank’s Liquidity ratio and Interest rate has significant effect of deposit mobilization in the study area. Based on the result it was recommended that saving policy which is favoring customers to make deposits, front line staff can confidently adapt their marketing message to saving mobilization, expand its branches in order to increase saving mobilization, consider the level of competition, increase the deposit, providing excellent service for its customers and should build good will to be acceptable for the society that promote deposit mobilization. 4