Factors affecting private deposits volume of commercial bank of ethiopia jimma district

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.