Abstract:
The banks, as intermediaries of funds, should try to raise the resources through a
complete understanding of the factors influencing the volume of customer deposits. The
purpose of this research is to study the factors affecting the volume of private deposits of
Commercial Bank of Ethiopia Jimma District. For this purpose, the determinant factors
have been divided into five general groups including: service factors, financial factors,
communication and human factors, physical factors and organizational dependency
factors. This research is applied research and its method of conduct is descriptive-survey.
The research population includes all the customers of Commercial Bank of Ethiopia
Jimma district and research sample has been selected with the use of Krejcie & Morgan
table and simple and randomly, which is determined to be equal to 384 individuals. The
measurement instrument in this research is a questionnaire consisting of 18 questions
regarding the factors affecting the volume of private deposits of CBE-jimma District.
Based on the results of multiple regression analysis, all the independent variables have
been entered into the model and those variables which are effective have remained and
they have explained the determinant factors of volume of private deposits in a good way
with determining factor of 0.904. The results of the research are as follows: Service and
physical factors have a significant and positive effect and organizational dependency has
a significant and negative effect. However, communication and human factors and
financial factors have insignificant effect in determining the volume of private deposits of
Commercial Bank of Ethiopia Jimma District.
