WOLDIA UNIVERSITY

FACULTY OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

DETERMINANTS OF DEPOSIT MOBILIZATION IN CASE OF COMMERCIAL

BANKS IN ETHIOPIA .

A Thesis Submitted to Woldia University, Faculty of Business and Economics,

Department of Management for the partial Fulfillment of Requirement for
the award of Master’s Degree in Business Administration

BY: YAREGAL BELAY

ID NO GSE13066

ADVISOR: TADESSE G. (ASS, PRO)

FEBRUARY /2023

WOLDIA ETHIOPIA
DETERMINANTS OF DEPOSIT MOBILIZATION OF COMMERCIAL BANKS IN
ETHIOPIA SELECTED BRANCHS

YAREGAL BELAY
ID NO: GSE1366

ADVISOR: TADESSE G. (Assistant Professor)

MARCH, 2023
WOLDIA, ET

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 CERTIFICATION
This is to certify that Yaregal belay has carried out this thesis work entitled “Determinants Of
deposit mobilization of commercial banks in Ethiopian ”for the partial fulfillment of Degree of
Masters of Business Administration in Woldia University Faculty of Business and Economics.
This study is original and is not submitted for any degree in this university or any other
institutions and it is suitable for submission of Masters of Business Administration.

Approved by:

Name: Tadesse G (Ass.Prof)

Signature: ____________________________
Date: _________________________________

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APPROVAL SHEET
As thesis research advisor, I hereby certify that I have read and evaluated this thesis prepared
under my guidance by Yaregal Belay entitled DETERMINANTS OF deposit performance of
commercial banks in Ethiopia. I recommend that it can be submitted as fulfilling the thesis
requirement.

___________________ ___________________ _______________

Major Advisor Signature Date
As members of the Board of Examiners of the MBA thesis open defense examination, we certify
that we have read and evaluated the thesis prepared by Yaregal Belay and examined the
candidate. We recommend that the thesis to be accepted as fulfilling the thesis requirements for
the degree of Masters of Business Administration.
________________________ ____________________ _________________
Chairperson Signature Date
________________________ ____________________ _________________
Internal Examiner Signature Date
________________________ ____________________ _________________
External Examiner Signature Date

Final approval and acceptance of the thesis is contingent upon the submission of final copy of the thesis
to council of graduate studies (CGS) through the departmental or school graduate committee (DGC or
SGC) of the candidate.

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 DECLARATION
By my signature below, I declare and affirm that this thesis is my work. I have followed all
ethical principles of scholarship in the preparation, data collection, data analysis, and completion
of this thesis. All scholarly matter that is included in the thesis has been given recognition
through citation. I affirm that I have cited and referenced all sources used in this document.
Every serious effort has been made to avoid any plagiarism in the preparation of this
thesis/dissertation.

This thesis is submitted in partial fulfillment of the requirement for a degree from the Graduate
Studies at Woldia University. I solemnly declare that this thesis has not been submitted to any
other institution anywhere for the award of any academic degree, diploma or certificate.

Name: Yaregal Belay Signature: ______________________

Date: February 2023
Department: Management

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 ACKNOWLEDGEMENT
First of all I would like to say thank you for almighty GOD and his holy mom saint virgin
Maria , for helping me in every step of my life.

I would like to extend my sincere gratitude to my advisor TadesseGetachew (Ass.prof)) for his
insightful counsel and helpful suggestions, they have made a significant contribution toward
finishing this study.

I would you like to express my heart fullgratitudefor my family and my kids for their unlimited
support. And the last but not the list of my gratitude will be for woldia university, business and
economics faculty and all teachers in the department.

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vi
 Table of contents

Contents page
.............................................................................................................................................................................. i
CERTIFICATION......................................................................................................................................................i
APPROVAL SHEET.................................................................................................................................................ii
DECLARATION.....................................................................................................................................................iii
ACKNOWLEDGEMENT.........................................................................................................................................iv
Acronym and abbreviation..................................................................................................................................8
Abstract...............................................................................................................................................................9
CHAPTER ONE....................................................................................................................................................10
Introduction.......................................................................................................................................................10
1.1 Background of the study..........................................................................................................................10
1.2 STATEMENT OF THE PROBLEM.......................................................................................................13
1.3 Research questions.............................................................................................................................15
1.4 Objective of the study........................................................................................................................15
1.4.1General objective...............................................................................................................................15
1.4.2Specific objectives.............................................................................................................................15
1.5. Significance of the study.........................................................................................................................15
1.6Scope of the research................................................................................................................................15
1.7. Organization of the study...................................................................................................................16
. Chapter Two: Review of Related Literature.....................................................................................................16
2.1. Introduction................................................................................................................................................16
2.2 Theoretical review...................................................................................................................................17
2.3. Purpose of deposit......................................................................................................................................17
2.4. The function of banks in financial systems.................................................................................................17
2.4.1. Commercial bank deposits..............................................................................................................19
2.5. The determinants commercial banks deposits- theory.......................................................................22
2.6. Factors affecting Deposit mobilization of commercial Banks.................................................................31
2.4 Summary and knowledge gap..............................................................................................................39
2.5. Conceptual framework............................................................................................................................40
2.6. Hypothesis of the study..............................................................................................................................41

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CHAPTER THREE...........................................................................................................................................42
3.0. RESEARCH METHODOLOGY...........................................................................................................42
3.1. Research approach and design...........................................................................................................42
3.2. Target Population, sample determination method and sample size.............................................................42
3.3. Type, Sources and method of Data collection.........................................................................................42
3.4 Variables Measurement and model of the study.....................................................................................43
3.4.1 Variable Measurement......................................................................................................................43
3.4.2. Econometrics model of the study..................................................................................................44
3.5. Diagnostics Test Analysis.......................................................................................................................44
3.5.1. Heteroscedasticity............................................................................................................................44
3.5.4. Multicollinearity..............................................................................................................................46
CHAPTER FOUR.............................................................................................................................................47
ANALYSIS AND INTERPRETATION OF THE STUDY...............................................................................47
4.1. Introduction................................................................................................................................................47
4.2. Trend analysis of deposit performance of bank industry in Ethiopian........................................................47
4.3. Descriptive analysis test..............................................................................................................................47
4.4. Correlation Analysis among Variables.......................................................................................................49
4.5. Classical Linear Regression Model (CLRMA) Assumptions.....................................................................51
4.5.1. Normality test (ut n (0, Σ2)).................................................................................................................51
4.5.2. Multicollinearity test............................................................................................................................52
4.5.3. Heteroscedasticity test.........................................................................................................................54
4.5.4. Serial Correlation Test (Autocorrelation Assumption Test).................................................................55
4.4.5. Ramsey RESET test for variable omission of liquidity risk.................................................................56
4.6. Model Selection Test of the study...............................................................................................................56
4.6.1. Testing for random effects against pooled OLS: Breusch-Pagan Lagrange multiplier (LM)...............56
4.6.2. Housman test result....................................................................................................................57
4.6.3. Fixed effect vs pooled OLS test......................................................................................................58
2.7. The Result of pooled OLS regression model..............................................................................................59
CHAPTER FIVE....................................................................................................................................................64
MAJOR FINDINGS, CONCLUSION AND RECOMMENDATIONS OF THE STUDY....................................................64
5.1. Introduction...........................................................................................................................................64
5.2. Summary of Major findings and conclusions of the study.....................................................................64
5.3. Major findings of the study....................................................................................................................65
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5.4. Recommendation of the study...............................................................................................................65
5.4.1. Recommendation to banks and regulatory bodies..........................................................................65
5.4.2. Recommendation for future researches..........................................................................................66
REFERENCES..................................................................................................................................................68
Appendix............................................................................................................................................................73

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List of Acronym and abbreviation

CBE commercial banks in Ethiopia

CBE= commercial bank of Ethiopia

CLRM= classical linear regression model

CSA= central statistical agency

ESA= Ethiopian statistical agency

FE= fixed effect

NBE= national bank of Ethiopia

OLS= ordinary list square

RE= random effect

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 Abstract
Deposit is the main sources of capital for financial institution. Increasing in the amount of deposit
required by banks which is declared by national bank of Ethiopia had increased the struggle of banks
to raise a deposit. Deposit is not only the source of capital but also the means of creating a credit.
However, banks performance in the mobilizing of these essential resources varies from bank to bank.
Therefore the main objective of this research was to examine factors affecting deposit mobilization
performance of banks in Ethiopia. For achieving the objective of the research, descriptive and
explanatory research design followed by quantitative research was used. The required data was
extracted from annual financial statement of banks for the period of 2012-2020, Ethiopian economic
association report and Ethiopian statistical agency report. Only those banks which have a full
financial report for the specified period (I.E 2012-2020) were purposively selected and incorporated
in the study. So 15 commercial banks out of 26commercial banks operating in the country was
selected.The study was a balanced panel data type and an explanatory research design. The study
had tested all necessary classical liner regression model test for panel data and all of them were
satisfied. In addition to this, for selecting of the best fitted model for the study, a researcher made a
model comparison like LMtest, Houseman test and F test. Finally the test had recommended as
pooled OLS is the best fitted model for this study than random effect and fixed effect model. The trend
analysis ofthe study indicates, deposit performance of banks in Ethiopia is increasing tremendously
even if it does not equalize with NBE requirement. The 92% of the dependent variable of the study is
explained by the explanatory variables included in the study significantly. Finally the study had found

x
that all profitability, liquidity, efficiency, age and size has significant positive effect on banks deposit
mobilization performance and the effect of GDP, inflation, deposit interest rate and political
instability had negative significant effect. Therefore the researcher recommend banks in Ethiopia
should make more promotion about their size, profitability and other their performance in order
toincrease the confidence and trust of the depositors.

Key Words: Deposit Mobilization, Internal Factors, Macro Economic Variables, Commercial
Banks

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 CHAPTOR ONE :INTRODUCTION

1.1 Background of the study

Strong, well-developed and efficient financial system is the key driven factor in economic
development of countries and it has positive impact on economic growth. The financial system
in every economy is dominated by the banking sector, since without banks, financial system
cannot undertake the development of economy. According to Hartley, the modern banking
system was founded by the goldsmiths who existed during the 17th century in London and
accepted deposits and granted loans with respect to the available excess gold standard. Adam
Smith stated that, the trade of the city of the Glasgow, doubled in about 15 years after the first
erection of the banks and the trade of Scotland has more than quadrupled since the first erection
of the banks. These two statements of Adam Smith clearly define the much vital role of banks
play in an economy (Helani and Prasansha, 2018).
The economic development of any country is dependent on its financial system which includes
its banks, stock markets, insurance sector, pension funds and government – run central bank with
authority. Usually, banks are the cornerstone of a national financial system through play an
intermediary role of mobilizing funds from savers and subsequently lending them to investors
(Misrak, 2019; Shemsu, 2015; Tagel, 2015; Kibebe, 2016; SM Nahidul, et al, 2019).
Banks are the most capable institutions because of their capabilities in their widespread branch
networks, which gather unutilized funds in the form of savings. Fry (1997) emphasized that, banks
as financial intermediaries bring savers and investors, and/or lenders and borrowers together.
According to him, they create money and administer the payment system.

One major problem of developing countries seems to be the form rather than the amount of
savings that can be mobilized. One way, banks can solve this challenge is to encourage capital
formationinitiativessuchasworkingcapitalfinancingandfinancialsavings.Inordertocontinuesaving a
sustainable economic growth, the emphasis should be on the mobilization of domestic savings
(Aryeetey and Udry, 2000).

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According to GTP II (Ethiopian Growth and Transformation Plan Two), it is planned to financeat
least two-third of gross domestic investment from domestic saving. During GTP II period(2014/15-
2019/20), the Commercial Bank in Ethiopia is expected to provide credit forpublic investment
projects in infrastructure and working capital for industrial sector. The total
credit allocated for the service sector is to be obtained from CBE in Ethiopia and private CBs.
Investmentfinancing through banks, microfinance institutions, bond sales and contractual saving is
projectedat ETB 1.9 trillion (93.7 percent) from banks and microfinance institutions through deposits
andloan repayment and ETB 120 billion (6.3percent) from bond sale, contractual saving and from
other finance sources during GTP II period. To finance the GTP II, banks‘deposit is expected togrow
at an annual average rate of 30.9 percent.(GTP II, 2016). However the growth rate of the deposit
performance of commercial bank in Ethiopia was not as expected as indicated in the annual reportof
banks in Ethiopia.

Thus, in order to finance the country‘s investment needs CBs are expected to mobilized adequatefund
in the first place. However, mobilizing sufficient deposit is not a simple undertaking form commercial
banks rather it needs to know what factors can affect their deposit growth firstly.Jaber and Manasrah
(2017), Boadi, Li and Lartey (2015), Ostadi and Sarlak (2014), Sanayei,Shahin and Amirosadt
(2012), Ngula (2012) and Katalai (2008) are researchers who conductedstudies on factors affecting
deposit growth of CBs in foreign countries.

What basically fuel customers of banks to deposit money in CBs in Ethiopia is the center of
thisresearch. The objective of this study is to determine factors affecting deposit growth of CBs
inEthiopia by taking CBE and five purposively selected private CBs as a sample. Differentresearchers
including Mamo; Fisseha and Ketema (2017), Behredin; Kibebe; Andinet;Yannet;Nafkot and Ephrem
(2016), Shemsu and Hibret (2015), Getahun (2014), Sisay (2013) and
Wubitu (2012) carried out researches to determine factors affecting CBs‘ deposit growth inEthiopia.
Their results were inconsistent (as indicated in the empirical review of the study) towards the effect
of inflation, loan and advances and money supply. Therefore, this study was focused on finding the
basic determinants which affects the performance of bans in Ethiopia in mobilizing deposit.

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1.2 STATEMENT OF THE PROBLEM

One of the main reasons for the existence of commercial banks in Ethiopia is for supporting of the
economy thorough transfer of funds form those who have a surplus to those who have shortage of funds
which is required to be invested in more profitable areas.

Deposit is not only source of fund but it is also credit multiplier which implies it is the basic determinant
which affects the amount of credit to be provided by commercial banks which is called credit creation or
credit multiplier role of deposit (Robenas, 2020). Therefore, if banks want to provide more loans they are
expected to increase their deposit. In addition to this increasing in capital requirement sated by national
bank of Ethiopia had also increase deposit requirement of commercial banks to raise a new fund and the
main source of this fund is deposit raised form customers. NBE had declared that, banks in Ethiopia
should have to have a minimum of 5 billion birr and those which are existing in operation and which does
not have such amount are expected to fulfill it by 2026 (SBB/78/2021). So for fulfilling of this fund or
capital required, banks in Ethiopia are aggressively working on mobilizing of resources (fund). So, the
main sources of fund for banks is deposit made by the customers.

Determinant variablescommonly explained as a factor affecting deposit are gross domestic product (GDP),
positive andsignificant influence in deposit mobilization (Misrak, 2019); (Tenaye, 2019); (Andinet, 2016);
(Ashenafi, 2016) while (SM Nahidul et al ,2019); (Giragn, 2015) have insignificant power to influencethe
dependent variable.

Other studies showed that, inflation rate was insignificantly negatively correlatedwith bank deposit
(Andinet, 2016); (Ketema, 2016). While (Robenas, 2020) while inflation hadinsignificant positive
influence on bank deposit growth (Misrak 2019); (Ashenafi, 2016) and inflationrate has no significant
impact on the banks deposit growth rate of the private commercial banks inBangladesh (SM Nahidul et
al ,2019).

Exchange rate Exchange rate is negatively and statistically insignificant on bank deposit growth) (Belay,
2019; (Misrak, 2019); while (Ashenafi, 2016); (Ketema,2016); Giragn, 2015) conclude that, exchange rate
has positively and statistically insignificant on bankdeposit growth.

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In fact, some studies have been conducted regarding determinant of deposit mobilization in
commercialbank of Ethiopia. However, these studies have some difficulties to generalize about which
explanatoryvariable is positively and negatively determines deposit mobilization in commercial bank of
Ethiopia(Robenas, 2020; SM Nahidul, et al, 2019; Aberham, 2019; Belay, 2019; Misrak, 2019; Tenaye,
2019;Mamo, 2017; Kibebe, 2016 and Giragn, 2015) and others conducted a research on factors
affectingdeposit mobilization on commercial bank of Ethiopia (Fikadu, 2019; Andinet, 2016; Ashenafi,
2016 andSisay, 2013) But, the result was inconsistent to determine deposit mobilization in commercial
bank ofEthiopia.

Thus, have seen additional variable and check for existing variable with current situation onDeposit
mobilization, estimated cause variable such as Branch Expansions, Inflation rate, GDP, Bank profitability,
liquidity and Bank credit risk effects of deposit mobilization on bothpublic and private commercial banks
in Ethiopia.

All the above discussions clearly show that, the issue ishighly researchable and needs empirical research
to identify Determinants of Deposit Mobilization inCommercial Banks of Ethiopia.When we move to
Ethiopia, as far as the researcher concerned, the following are researchers whoconducted researches on
factors affecting deposit growth of CBs in Ethiopia;

Mamo; FissehaandKetema (2017), Behredin; Kibebe; Andinet; Yannet; Nafkot and Ephrem (2016),
ShemsuandHibret (2015), Getahun (2014), Sisay (2013) and Wubitu (2012), in their researches they
testedthe effect of numerous independent variables on deposit growth.

According to the researchesconduct by Kibebe and Behredin (2016), money supply has insignificant
negative effect on CBs‘depositgrowth. Whereas, the research conducted by Ketema (2017) revealed that
money supplyhas significant negative effect on CBs‘ deposit growth. Again, Mamo (2017) and Yannet
(2016)studied to determine the effect of loan and advances on CBs‘ deposit growth. Mamo (2017)found
that loan and advances has positive significant effect on CBs‘ deposit growth. Conversely,
Yannet (2016) found that loan and advances has insignificant positive effect on CBs‘ deposit
growth. Finally, Ketema and Fiseha (2017) and Behredin (2016) tried to determine the effect of
inflation on CBs‘ deposit growth. Their findings revealed that inflation has negative significant
effect, positive significant effect and positive insignificant effect respectively on CBs‘ deposit
growth. These different findings on the same variables need additional research to be conductedin order to
mitigate the vagueness with such independent variables‘ effect on CBs‘ deposit
growth.
Moreover, according to the studies done by Jaber and Manasrah and Fisseha (2017), Ephrem
4
(2016), Sisay; Sanayei, Shahin and Amirosadt (2013) advertising was found to have positive
effect on CBs‘ deposit growth. Advertising helped in attracting people towards bank and helped
them in understanding how banks work especially those people who were afraid to go to banks
with of loss or fraud. Through advertising people become aware of bank's offers and keep on
availing those offers, which result in large revenues for banks. Advertising helps in establishing
goodwill of banks and thus making a bank who advertises most, popular over others which
results in people first choice and their trust (business-finance.blurtit.com).

However, this research had tried to explore how both internal and macro-economic factors including
political instability affect banks deposit performance.

1.3 Research questions

1. What the various factors of deposit mobilization performance of commercial banks in
2. What is the effect of bank specific variables on banks deposit mobilization performance?
3. Does a macroeconomic variable have an effect on bank deposit mobilization performance?

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 1.3 Objective of the study
1.4.1General objective
The general objective of this study was to determine of various variables on deposit mobilization of
commercial bank in Ethiopia. Like bank specific variables and macroeconomic variables.

1.4.2 Specific objectives

1. To assess the deposit mobilization performance of commercial banks in Ethiopia for the periods
2. To examine the effect of bank specific variables like bank size, capital ratio, capital adequate, liquidity
loans. on banks deposit performance
3. To evaluate the effect of macro-economic variables like GDP, interest rate, inflation, on banks deposit
performance.

1.5. Significance of the study

To put in place adequate bank deposit management tools, understanding factors that determine
commercial bank’s deposit play a crucial role. The study has great contribution to the existing knowledge
in the area of factors determining Commercial Banks deposit in the case of Commercial Banks of
Ethiopia. This in turn contributes to the well-being of the financial sector of the economy and the society
as a whole. Therefore, the major beneficiaries from this study are: Commercial Bank of Ethiopia,
regulatory bodies and the academic staff of the country. Furthermore, it will serve as stepping stone for
further research in similar area. And lastly this study will give good idea to the researcher about this
specific topic and general knowledge about any research

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1.6Scope of the research
In Ethiopia there are more than 26 commercial banks under operation. From the number of the banks
under operation the study uses15 Commercial Bank of Ethiopia as case study. In order to make the scope
of the study manageable, this research focus on some major factors that determine bank deposit and the
study is restricted to identify some of the bank specific and macroeconomic factors affecting deposit of
CBE. The research is also limited in its scope since it doesn’t consider all primary data and information
from external government organs, banking regulators, other banks and the public at large. The study uses
secondary data for the period of 2012- 2020 and the primary data is used as a supplementary to strengthen
the finding drown from secondary data.

1.7Organization of the study

This research paper was organized in five chapters. Chapter one provides the general introduction about
the whole study which includes background of the study, statement of the problem, objectives questions
and hypothesis of the study, significance of the study and cope of the study. Chapter two describes the
review of related literatures which includes concept review, theoretical and empirical reviews. Chapter
three provide detail description of the methodology like research design and approach, type of data, source
and method of data collection, population, sample size, sampling method and sample size determination
method, data analysis and interpretation method and econometrics model of the study. Chapter four
contains data presentation, analysis and interpretation. Finally, the last chapter concludes the total work of
the research and gives relevant recommendations based on the findings.

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 Chapter Two

REVIEW OF RELATED LITERATUR

2.1 Theoretical Review(Concepts,theories,Definitions)

There are articles, journals and different information on the issue of the commercial banks deposits and
the factors which controls the commercial banks deposits. Some authors had classified the factors and
explain their relationship with commercial banks deposits. Commercial Banks deposits are dependent on
depositor’s money as a source of funds. According to the Keynesian theory of demand for money, there
are three main motives why people hold money: transactions, precautionary and investment motives. In
order to cater for these motives, commercial banks offer three categories of deposit facilities that are
demand, savings and time deposits. Demand deposit facility is most commonly referred to as current
account and is designed for those who need money for transaction purposes. This motive can be looked at
from the point of view of consumers who want income to meet their household expenditure and from the
viewpoint of businessmen who require money and want to hold it in order to carry out their business
activities. Hence, the purpose of deposit facility is for convenience or for making daily commitments.
Bank deposits represent the most significant components of the money supply used by the public, and
changes in money growth are highly correlated with changes in the prices of goods and services in the
economy (Sergeant, 2001). Bank deposits are made to deposit accounts at a banking institution, such as
savings accounts, checking accounts, time deposit accounts and money market accounts. The account
holder has the right to withdraw any deposited funds, as set forth in the terms and conditions of the
account. The "deposit" itself is a liability owed by the bank to the depositor (the person or entity that made
the deposit), and refers to this liability rather than to the actual funds that are deposited.

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2.1.1 Purpose of deposit
From depositors’ point of view, the key purposes to use deposit in bank are safety of their money,
easy access and a possible real return. In general depositors keep their money in banks for a motive
to undertake some activities in the future. According to Bhatt(\1970), there are motives to save
money, the followings are the example of some motives:-
> to own house
> to provide for children’s education and marriage
> to provide for old age
>to bequeath property to children
> to provide for emergency expenditure

2.1.2 The function of banks in financial systems

Understanding the many roles that banks play in the financial system is one of the fundamental issues in
theoretical economics and finance. The efficiency of the process through which savings are channeled into
productive activities is crucial for growth and general welfare. Banks are one part of this process. Lenders
of funds are primarily households and firms. These lenders can supply funds to the ultimate borrowers,
who are mainly firms, governments and households,
Financial sector is broad which consists of the banking sector and other financial institution (such as
insurance corporations and pension funds, brokers, public exchange and securities markets etc.),
however, in the context of African continent the banking industry carries the greater share of the financial
system (Sheku, 2005). Most of the business relies on banking sector as a source of financing (Medhat,
2004). Banks have historically been viewed as playing role in financial markets for two reasons. One is
that they perform a critical role in facilitating payments. Commercial banks, as well as other
intermediaries, provide services in screening and monitoring borrowers; and by developing expertise as
well as diversifying across many borrowers, banks reduce the costs of supplying credit (Samolyk, 2004).
Thus in their role as lenders, banks are often not merely buying someone’s debt, rather they are providing
significant financial services associated with extending credit to their customers and to the extent that
investors want to hold banks liabilities, banks can fund borrowers directly. The main providers of
additional financing are domestic commercial banks (Herald &Heiko, 2008). Banks perform various roles
in the economy (Franklin & Elena, 2008) :-

 They improve the information problem between investors and borrowers by monitoring the latter and
ensuring a proper use of the depositors’ fund.
9
 They provide inter temporal smoothing of risk that cannot be diversified at a given point in time as well
as insurance to depositors against unexpected consumption shocks. Because of the maturity mismatch
between their assets and liabilities, however banks are subject to the possibility of runs and systematic
risk.
 Banks contribute to the growth of the economy. Commercial banks are institutions that engage in two
distinct types of activities, one on each side of the balance sheet deposit-taking and lending. So that banks
are playing mainly intermediation function, this is supported by (Russell &Bamindele, 2009). (Mahindra,
2005) Also states bank as the backbones of the trade and commerce playing the intermediary role of
capital formation and supply. Even if other financial institutions are available banks play a major role in
facilitating the way the financial sector operates. Therefore, banks are important of all other financial
institutions. Banks influence macroeconomic environment, as to (Adam, 2005), bank failures involve
significant macroeconomic costs. (Adam, 2005), has developed evidence that bank failures have
significant and apparently permanent effects on real economic activity. Therefore, banks are also
important influencers in macroeconomic environment. Banks mobilize, allocate and invest much of
society’s savings. Households and businesses are mainly using banks to save their money to get loan for
their project undertakings. (Kelvin, 2001), said that commercial banks are important financial
intermediaries serving the general public in any society. In most cases commercial banks hold more assets
than any other financial institutions. Apart from their many functions, commercial banks facilitate growth
and development. Banks lend in many areas or sectors of the economy. Moreover, commercial banks will
affect the overall economy of the specific country both in a good way or bad way. Commercial banks
represent a vital link in the transmission of government economic policies (particularly monetary policy)
to the rest of the economy. For example, when banks credit is scarce and expensive, spending in the
economy tends to slow Determinants of Commercial Bank deposit a case of Commercial Bank of Ethiopia
and unemployment usually an increase as (Kelvin, 2001) explains. So the event in the commercial banks
will affect the country’s economy in general. Bank deposits represent the most significant components of
the money supply used by the public, and changes in money growth are highly correlated with changes in
the prices of goods and services in the economy (Kelvin, 2001). Commercial banks are critical to the
development process. By granting loans in areas such as agriculture, manufacturing, services, construction
and energy sectors, banks contribute to the development of the country Not only commercial banks are
affecting the economy but also the economy affects the function of commercial banks. Bank loan portfolio
including volume, tenor and structure may be generally influenced by their expectations of the
performance of economy both in terms of stability and level of performance. As cited by banks make out

10
more loans during periods of boom and reduced level of macroeconomic uncertainty and curtail lending
when the economy is in recession.
2.1.3 Commercial bank deposits
Commercial Bank deposits are major liabilities for commercial banks. (Kelvin, 2001), said that deposits of
commercial banks account for about 75% of commercial bank liabilities. Due to the fact that commercial
banks are using this liability to lend it and gain return on it their deposits are using them do their business.
Therefore, banks will be better if they are mobilizing more deposits. However, as (N. Desinga, 1975)
indicates deposit mobilization is a very difficult task. The cost of intermediation for mobilizing deposits is
also very important part of overall intermediation cost of the banking system. Deposits provide limits to
the working capital of the bank concerned. The higher the deposits, the higher will be the funds at the
disposal of a bank to lend and earn profits (N. Desinga, 1975). Therefore, to maximize its profit the bank
should increase its deposit. (Mahendra, 2005) had also mentioned deposits as a foundation up on which
banks thrive and grow and unique items on a bank’s balance sheet that distinguish them from other type of
business organizations. Commercial banking is a service industry with a high degree of built in profit
potential. The number one expense item for a bank is interest paid. Commercial banks mainly depend on
the funds deposited with them by the public to lend it out to others in order to earn interest income (N.
Desinga, 1975). (Hamid, 2011), said that if banks lose their deposit base they rely on nondeposit based
funding which is expensive. Determinants of Commercial Bank deposit a case of Commercial Bank of
Ethiopia. Deposits are of three kinds (N. Desinga, 1975), namely:
1. Current or demand deposits
2. Fixed or Time deposits / Term deposits.
3. Savings deposits Hence, the competition for deposits is really a competition for profits.
Commercial banks compete for deposits in order to become profitable and thus to be able to supply more
funds to the public. However, such financial growth is profitable only if the commercial bank does not
incur additional expenses to obtain and retain cash (Devinaga, 2010). Commercial banks earn a return on
their deposits and capital by investing deposit funds and capital funds in assets (Richard, 1971). That is for
commercial banks to attain profit deposits are one of the most important sources of capital. Moreover,
according to (Richard, 1971), capital structure in commercial banks are made up of shareholders’ funds,
borrowing and deposits. Therefore, deposits are one of the sources of capital for commercial banks.

11
2.1.3.1 The importance of deposits for banks
Deposits are the foundation upon which Banks thrive and grow. They are a unique item on banks’ balance
sheet that distinguishes it from other types of business firms.

A. Deposits as a source of fund for loan

States deposits are the main source of banks to provide loan (Herald &Heiko, 2008). This deposit is
mainly provided by people as (Salehi, 2010). However, deposits can also be provided by business
organizations, NGOs, government and so on. Therefore, whether deposits are from individuals, businesses
and government they are important financial source of banks.
B. Focusing on deposit is cheaper than raising equity

Banks as any other business organizations can collect funds from debt and/or equity. In the banks context,
raising equity is more expensive or costly than attracting deposits. (Lorenzo et al 2010) states that, if the
lending channel plays a role, the deposit growth should lead to an increase in the supply of loans due to
the additional source of financing for banks. As demand for loan increases because of the development
work done by individuals, businesses and government, banks should extend their deposit base. When a
commercial bank creates a deposit by lending to a business man, it is clearly performing a function for
which it is entitled to a return in the form of interest payments (Harold, 1946).
C. Banks make profit using their deposits
Deposits provide most of the raw materials for bank loans and thus represent the ultimate source of the
bank’s profits and growth (Mahendra, 2005). Banks make profit by using their deposits, therefore it is said
that depositors can disciple banks. (Maria & Sergio, 2001), found that depositors discipline banks by
withdrawing deposits and by requiring higher interest rates. For depository corporations mainly deposit
money banks, their principal objectives is undertaking financial intermediation to make profit and increase
their shareholders value (Sheku, 2005). They achieve their objectives mainly by attracting deposits and
investing the money on profitable investment portfolio.
D. Fund investment and/or development projects
Debt is largely held by domestic commercial banks which are funded mainly from deposits, the
government demand for bank assets enabled banks to continue to expand their deposit base rapidly
(Herald &Heiko, 2008). Individual1 investors and government are mainly depending on the deposits of
banks to fund their investments and/or development projects. Generally, the banking system can be viable

12
only if it can mobilize deposits at the required rate. And this can be done only by making a bank deposit
more attractive (Bhatt, 1970). The ability of a bank’s management and staff to attract checking and
savings accounts from business and individuals is an important measure of the bank’s acceptance by the
public (Mahendra, 2005). Banks’ management major concern is the variability of deposits for several
reasons. (Kaufman, 1972), mentioned the reasons why the variability of banks’ deposit is important as
follows: -
 Deposit variability is frequently included as an important determinant of portfolio strategy. The more
volatile a bank’s deposits are the more liquid its mix of assets will be.
 To the extent deposit variability affects bank holdings of cash and excess reserves, variability affects the
distribution of total member bank reserves within the banking system and thereby the path and speed of
monetary policy actions.
 To the extent deposit variability affects the mix of banks assets; it affects the availability of funds for
loans and consequently the loan rate. Determinants of Commercial Bank deposit a case of Commercial
Bank of Ethiopia .
 To the extent deposit variability affects both the mix of earnings assets and the frequency of engaging in
costly reserve adjustments, variability affects the profitability of individual banks.
 Deposit variability is an important factor influencing bank use of the Federal Reserve discount window
and thereby affects discount administration.

2.1.4. The determinants commercial banks deposits- theory

An important indicator of the success and efficiency of any credit agency, which is also a banking
institution is, the extent to which it is able to mobilize the savings of the community in the form of
deposit. But deposit mobilization is very difficult task. It depends up on various factors exogenous as well
as endogenous, to the banking system ( Desinga, 1975). Exogenous factors are the general economic
environment of the region, the volume of business transaction of the region, the confidence of the people
on the banking system, the banking habit of the people and the saving potential of the region. Even when
exogenous factors are more conducive for deposit mobilization, banks may fail because of unfavorable
endogenous factors such as location, type of building and window dressing(furniture, cheque books,
vouchers, pay slips etc), which assure the customers about the physical fitness of a bank (N. Desinga,
1975). As (N. Desinga, 1975), did the researcher classify the variables which are claimed to have effect on
the commercial banks deposits into two, namely exogenous and endogenous factors? Exogenous has
further divided into country specific and bank specific factors for clarification purpose. Endogenous
factors can be controlled by the banking system; however, the exogenous factors cannot be controlled by

13
the banking system. The bank specific factors are factors that are specific to the banking system and the
country specific factors are factors that are beyond the banking system.

2.1.5 External factors

These are factors that are from country and banks that can affect the growth of commercial banks deposits.
There are discussed as follows: -
A) Country specific factors
The country’s economic, social and political factors can affect the commercial banks deposit. According
to (Herald &Heiko, 2008), country specific risks such as political, economic and financial risks may affect
the propensity for depositors to place funds in the banking system. Any single bank operates under the
rule and regulation of the country where it belongs, also different problems and shocks that has happened
in the country has its own concern in the banks operation. Generally, a bank success in their operation is
mainly depends on the environment where the business is undertaken. The researcher has identified ten
country specific factors that have affected the commercial banks deposits from the literature. They are
saving interest rate or deposit rate, inflation, real interest rate, number of commercial banks available in
the country, population growth, per capita income of the society, economic growth, consumer price index,
gross domestic product (GDP) and shocks.
1. Saving interest rate
One of the most effective factors for deciding to deposit in banking system is the interest rate (Mohammad
& Mahdi, 2010). Moreover, this article shows the impact of interest rate on the performance of the
banking system to achieve the goals that are expected from the banking system. (Herald &Heiko, 2008),
also mentioned interest as one of the determining factor for commercial banks deposits. (Philip, 1968),
also states that the offering of attractive interest rate on bank deposits may be considered to have had a
beneficial effect. Moreover, (Mustafa &Sayera, 2009) said that low deposit rates are discouraging saving
mobilization. (Bhatt, 1970), said that the banking system is unlikely to be in a position to meet the demand
for bank credit unless concerted policy is pursued to raise the rate of saving generally and the rate of
saving in the form of deposits in particular. Interest rate in the banking system is held as investment cost
from the investor’s point of view and opportunity cost from the depositor’s point of view (Mohammad &
Mahdi, 2010).Thus, capital market forces balance interest rates. In other words, the just and correct
interest rate should be determined through market mechanism, that is, interest rate is balanced in supply
and demand conditions in proportion with the inflation rate. (Eustacius& David, 1995), states that deposits
are more interest rate sensitive and banks may choose to increase investments in interest rate sensitive

14
assets and to decrease investments in loans. That is commercial bank deposits are interest rate sensitive,
therefore as the interest rate changes the deposit of the commercial banks will change. It is known that
depositors bring money to the bank which the banks in turn lend it to the borrowers. The gross earnings of
the bank are determined by the volume and composition of loanable funds and the rates at which they are
loaned. After losses and expenses of operation are deducted, the net earnings provide a margin out of
which interest on deposits can be paid. Because of the competition for these funds among bankers who
desire to loan them at a profit, a bank must pay interest or lose deposits to a competitor. The payment of
interest on deposits is explained in this wise, like any other interest rate. As to (Erna &Ekki, 2004),
Economists, mainly conventional ones, believe that depositors are attracted to deposit their money in
banks because of the opportunity cost of holding cash in hand is high when the interest rate is also high.
This can easily be explained by the utility maximization (cost minimization) premise, as a depositor will
choose an action that will maximize their welfare or satisfaction. As to (Richard, 1971), regulation of the
commercial banking industry affects the returns which commercial banks realize on their deposits and
capital. That is although deposits are the source for profit of banks it is influenced by regulation of the
country. Accordingly, the higher profit rate on demand deposits is to a large extent the result of the
prohibition against the payment of interest on these deposits. Therefore, depositors are motivated by
returns. Using an Adaptive Expectation Model (AEM), it is founded that depositors are indeed motivated
by returns in Malaysia (Erna &Ekki, 2004). On the other hand, (Erna &Ekki, 2004) states that the rate of
interest does not have influence on the volume of the deposits. However, (Rose, 2001), said that banks
increase their deposits by offering higher deposit rate. These are the articles that contradict to each other in
identifying the relationship between the commercial banks deposits and saving interest rates or deposit
rate.

2. Inflation
As to (Herald &Heiko, 2008), inflation is one of the factors that determine commercial banks deposits.
Fischer showed that in Latin America the effect of inflation on savings and time deposit to GDP was
significantly negative (Mohammad & Mahdi, 2010). The classical belief is that, because bank assets and
liabilities are expressed in monetary terms and because these assets will normally grow in line with
growth in money supply, banks are relatively immune from the effects of inflation (Devinaga, 2010). In
brief, monetary policy works by controlling the cost and availability of credit. During inflation, the
Central bank can raise the cost of borrowing and reduce the credit creating capacity of commercial banks.
According to (Devinaga, 2010), this will make borrowing more costly than before and thereby the
demand for funds will be reduced. Similarly, with a reduction in their credit creating capacity, the banks

15
will be more cautious in their lending policies. Since the banks demand for fund decreases obviously the
deposits will decrease. Banking system was affected by inflation Determinants of Commercial Bank
deposit a case of Commercial Bank of Ethiopia in terms of deposit absorption and facilities grant
(Mohammad & Mahdi, 2010). As to (Mohammad & Mahdi, 2010), in developed countries negative
correlation between inflation and absorbed deposits and granted facilities has been documented. However,
in developing countries the opposite is true. Inflation is seen as an economic problem in developed
countries in the second half of 20th century. Inflation with effect in economic growth, employment,
income distribution and wealth as well as social and political conditions of a country can influence its
entire dignity (Mohammad & Mahdi, 2010). Banking system as an important effective factor in economic
performance has also been under the influence of inflation. As far as the effect of inflation on financial
sector conceived the literature demonstrates that inflation affects the capacity of financial sector for
optimal allocating of resources. That is as inflation rate increases, true yield rate of money and assets
decreases; therefore, deposits are no longer attractive. Also the increase of inflation rate has a negative
effect on the performance of financial sector through the market credits and in turn, on the performances
of banks and capital markets and finally on the long term economic growth (Mohammad & Mahdi, 2010).
With respect to the effect of inflation on savings, it can be mentioned that in general, all individuals who
save a part of their incomes in banks are directly damaged by the inflation and their assets decrease in
proportion with money value decrease (Mohammad & Mahdi, 2010). In that case as (Mohammad &
Mahdi, 2010) describes people try to change their cashes and savings to more reliable and stable forms
such as land, jewelry, antiques, art collections, foreign currencies that causes to definite decrease in
commercial bank’s total deposit. High inflation rates reduce the real value of deposits (M. A. Baqui&
Richard L. Meyer, 1987). According to (M. A. Baqui& Richard L. Meyer, 1987), inflation technically did
not decrease deposit; however, it decreases the value of deposits.
3. Real interest rate
Real interest rate is nominal interest rate minus inflation rate. (Mohammad & Mahdi, 2010), said that in
negative real interest rate condition, people withdraw their resources from banking system. According to
this author some research supposed that decrease in real interest rate could decrease true demands for
money (in its extensive definition including savings and time deposits). Therefore, it states that the interest
rate and deposit of the banks have positive relationship. Determinants of Commercial Bank deposit a case
of Commercial Bank of Ethiopia.

16
4. Population growth of the country
The twin objectives of commercial banks, i.e. acquiring deposits and advancing credit cannot be attained
without good banking habits of the people (Mahendra, 2005). Moreover (Mahendra, 2005) states that, the
number of deposit accounts is more important because it ensures that the probability of account is more
important because it ensures that the probability of account holders withdrawing cash at a time decreases
as the number of deposit account increase, thereby creating advantage for banks in terms of increasing the
size of the loanable fund. So the higher number of deposit accounts the greater is the advantage to banks.
The number of deposit accounts depends on the number of deposit account holders.

5. Per capital income of the society

According to (Jim, 2008), per capita is the level of GDP divided by the population of a country or region.
Changes in real GDP per capita over time are often interpreted as a measure of changes in the average
standard of living of a country. If households and firms desire to hold more money, deposits will increase.
So the relationship between income and deposits is positive that is as the income of the society increases
the same happens for the commercial bank’ deposits. Income is expected to have a positive effect on
deposits (M. A. Baqui& Richard L. Meyer, 1987). Therefore, as society’s per capita income increases the
same will happen for commercial banks deposits. (Mahendra, 2005), also indicates that income of the
society matters for banks’ deposit growth.

6. Economic growth
Economic performance is generally being measured through GDP (Gross Domestic Product), a variable
that has also become the de facto universal metric for 'standards of living. It is universally applied
according to common standards, and has some undeniable benefits mainly due to its simplicity. According
to (Herald &Heiko, 2008), growth is one of the determining factors for commercial banks deposits. GDP
is calculated by adding up the value-added at each stage of production (deducting the cost of produced
inputs and materials purchased from an industry’s suppliers. (Erna &Ekki, 2004), finds four variables,
GDP, number of Islamic bank’s branch offices, profit sharing rate, and interest rate that are thought to
have influence on the volume of deposits. So, GDP can influence the growth of commercial banks
deposits. Determinants of Commercial Bank deposit a case of Commercial Bank of Ethiopia

17
7. Shocks
Aggregate shocks affect deposits and interest rates during crises, regardless of bank fundamentals and
investors’ responsiveness to bank risk taking increases in the aftermath crises (Maria & Sergio, 2001).
Therefore, given all other variables the shocks happened in the economy can affect the banks’ deposits.
B) Bank specific factors
1. Liquidity of the banks
The concept of liquidity in finance principally lies in two areas: - a) Liquidity of financial instruments in
the financial market b) The liquidity related to solvency. The former related to liquid financial markets
and financial instruments, smooth transactions and no barriers. As to (ISMAL, 2010), the latter discusses
the obligation of banks to make payments to third parties. Some examples of this includes: setting up
liquidity management policies, reserve liquidity, balancing assets and liabilities and preparing liquid
financial instruments (ISMAL, 2010). An important measure of liquidity is loan to deposit ratio. The loans
to deposit ratio is inversely related to liquidity and consequently the higher the loans to deposit ratio the
lower the liquidity and vice versa (Devinaga, 2010). Key liquidity indicators such as central bank credit to
financial institutions, deposits as a share of monetary aggregates, loans to deposits ratios, are important for
open market operations and liquidity management (Sheku, 2005). The basic need for liquidity, asset,
liability, capital adequacy, credit and interest rates risks management are now more challenging than
before. The banks’ liquidity
management involves acquiring sufficient liquid asset to meet the bank’s obligation to depositors.
According to the theories of financial intermediation, the two most crucial reasons for the existence of
financial institutions, especially banks, are their provision of liquidity and financial services (ISMAL,
2010). According to (ISMAL, 2010), Regarding the provision of liquidity, banks accept funds from
depositors and extend such funds to the real sector while providing liquidity for any withdrawal of
deposits, however the banks’ role in transforming short term deposits into long term loans makes them
inherently vulnerable to liquidity risk (Bank for International Settlements, 2008b:1). Individual, business
and government will be willing to deposits their money in banks if they are certain that they are save to
withdraw the money whenever they want, this is the question of liquidity of banks. The more liquid banks
can attract the deposits. A higher degree of financial intermediation (proxied by the loan-to-assets ratios)
may signal a bank’s success in generating income as well as a need for it to attract more deposits to
support its increased lending activities (Herald &Heiko, 2008). A higher liquidity buffers (measured by
the ratio of liquid assets to deposits) tend factor favoring deposit demand (Herald &Heiko, 2008). Liquid
banks as well as banks with a higher loan exposure are associated with higher deposit growth. (Herald
&Heiko, 2008), states that the liquidity situation of the bank also plays a significant role in determining

18
banks deposit growth. According to (Nada, 2010), Banks perceived as risky should have had more
difficulty attracting deposits and making loans than banks perceived as safe. When banks fail to pay for its
depositors then it faces liquidity risk that makes other depositors not to deposit in that particular bank.
2. Profitability of the bank
(Erna &Ekki, 2004), finds that the long run relationship between commercial banks deposits and the
profitability of the banks. Higher bank profits would tend to signal increased bank soundness, which could
make it easier for these banks to attract deposits (Herald &Heiko, 2008). However, the effect of bank
profitability and bank size are found to be insignificant once controlling for the other variables. So, the
effect of profitability and banks size on commercial bank deposit is lower as compared with other
variables.

3. Security of the bank

Security of banks matters in mobilizing deposit. Riskier banks would be able to attract deposits only
paying higher Interest rates. The security of banks has its own impact on its attractiveness for
depositors. For example, in the existence of deposit insurance the depositors no longer are concerned
about the soundness of their banks because their deposits are insured in the event of bank failure. So the
bank should secure its system so as to mobilize more deposit than before and to attract new depositors and
maintain the exiting depositors.
4. Banking accessibility
There is a relationship between commercial banks deposits and commercial bank’s branch expansion. Not
only are deposits influenced by bank branches, but the expansion of bank branches is also influenced by
the level of deposits in any area (M. A. Baqui& Richard L. Meyer, 1987). It is expected that banks make
decisions on expanding their facilities by considering factors such as level of competition, deposit
potential, regional income and existence of road and vehicles. As deposit potential is one thing that banks
consider in expanding its branches, the deposit can also be a reason for branch expansion strategy that the
banking sector uses. According to (Erna &Ekki, 2004), there is a long run relationship between
commercial bank branch and commercial banks deposits. It is often argued that branching stabilizes
banking system by facilitating diversification of bank portfolios. (Mark & Kris, 2006), found from
theoretical literature on banking regulation that branch banking leads to more stable banking systems by
enabling banks to better diversify their assets and widen their deposit base. An argument commonly
articulated in the literature is that branch banking stabilizes banking systems by reducing their
vulnerability to local economic shocks; branching enables banks to diversify their loans and deposits over
a wider geographical area or customer base (Mark & Kris, 2006). Restrictions on branching have been

19
linked to the instability of banking systems. (Daniel, 2005), suggest that the lack of widespread branching
bank networks hindered the development of large-scale industrial firms. It is stated that unit banks become
increasingly incapable of receiving deposits from a widespread geographic area. The single office bank is
also not able to monitor geographically diffuse debtors as easily as could be done with multiple offices.
Moreover, it can be concluding that under branch banking the mobility of capital is almost perfect.

5. Bank size
Among the factors prominently identified as affecting deposit variability one is bank size. Evidence
indicates that the number and diversity of the ownership of individual deposit accounts as well as the
distribution of deposits by type vary with bank size (Kaufman, 1972). (Herald &Heiko, 2008),
founds that although insignificant once controlled by other variables bank size have an effect on deposits.
Smaller banks have to generate fewer deposits in absolute terms to achieve the same deposit growth than
large banks, thus possibly favoring smaller banks in achieving higher deposit growth. But a larger bank
with economies of scale as well as larger branch network might be able to better attract deposits (Herald
&Heiko, 2008).
6. Reserves
(Thorn & S., 1959), said that reserves that are fixed legally can influence the deposits that banks can hold.
According to them reserve requirements determine the maximum amount of loans and investments that
each commercial banks and the banking system as a whole may maintain in relation to deposits. Thus, if
the reserve requirement is 20 percent of deposits, loans and investment (of the bank’s own choosing) may
not exceed 80 percent of deposits. Therefore, reserve requirements limit the total expansion of bank
deposits that can occur on the basis of any primary increase in deposits. Reserve requirements also have
the effect of limiting the reduction in bank credit and deposits that is forced up on the banking system by a
primary decrease in deposits. The commercial banks can obtain currency to pay out to customers only by
drawing down their reserve deposits at the central bank or by using till money (Thorn & S., 1959). Till
money, according to (Thorn & S., 1959) is the currency that banks keep on hand to satisfy day to day
needs. They pointed out that bank deposits are a large part of the money supply in virtually all countries.
7. Transaction cost
Important indicator of management’s effectiveness in any bank are whether or not deposited funds have
been raised at the lowest possible cost and whether enough deposits are available to fund those loans the
bank wishes to make (Mahendra, 2005). This last point highlights the two key issues that every bank must
deal with in managing its deposits (Mahendra, 2005):-
 Where can the bank raise funds at the lowest possible cost?

20
 How can management ensure that every bank always has enough deposits to support the volume of
loans and other financial services demanded by the public?

8. Financial technologies
Financial technologies such as card banking enable customers’ access to cash services 7-days24 hours by
making large cash carrying unnecessary (Mr Gunnar &Mr Zhao, 2013). It shifts out the traditional frontier
of access to banks. Deposit per capita of countries had grown well after the
introduction of card payment, ATM and mobile/internet banking technologies in their financial system. A
study in Georgia indicated that these technologies have reduced public preference to holding cash in
purse.
9. Foreign remittance
Remittance from Diasporas to families in home-country has become another significant determinant of
household saving and domestic private savings (Athukorala&Sen, 2001). Remittance is part of the
disposable income of recipient households, and as their combined income increases, saving is expected to
do so. It is, however, alleged that remittance makes households rather loose in their spending and
pressurize families to Western life-style. According to this pessimistic view, remittance is spent on
conspicuous consumption, and unproductive investment when viewed in terms of the economy. On the
optimistic side is that remittances allow poor households to invest on durable goods and human capital –
improving children’s education and health, and should therefore be encouraged and facilitated.
10. Awareness of the society
According to (M. A. Baqui& Richard L. Meyer, 1987), some analysts argue that demand for deposits is
influenced by education level which in turn increases the awareness of the rural people about banking
services. Since the study of (M. A. Baqui& Richard L. Meyer, 1987) conducted by taking rural area as its
base it is obvious that it considers the awareness as a factor of deposit mobilization. It was also found that
literacy as a proxy for awareness about banking, positively influence deposits.
11. Convenience of bank’s office
Road and vehicles directly influence interest bearing deposits because of the reduction in depositors’
transaction costs through reduced time spent in travelling to and from banks (M. A. Baqui& Richard L.
Meyer, 1987). Banks can mobilize more deposit when they make themselves closer to their customers
(depositors).

21
12. Services in the bank
Services can be defined as “any primary or complementary activity that does not directly produce a
physical product that is the non-goods part of the transaction between customers and providers. It is
known that banks are service giving organizations and the service delivery can affect their business
undertakings. (M. A. Baqui& Richard L. Meyer, 1987), stated that there is some empirical evidence
demonstrating the positive influence of services rendered to depositor. Further suggested two innovations
to be tested to provide incentives to depositors: -
 Additional benefit like prize bounds could be given to depositors for maintaining deposits for particular
period.
 One category of deposits might be specifically tied to future loans. Bank customers might be
encouraged to participate in a savings program that, for example, provides machinery or housing after a
predetermined amount of savings has been accumulated. Services in the bank should be attractive enough
for the depositors so as to mobilize deposits. If the banks could offer these services, the savers would be
inclined to keep a part of their saving in the form of deposits (Bhatt, 1970). The followings are services
that (Bhatt, 1970) claims to use to mobilize deposits: -
1. Door-to-door collection of small saving in the form of deposits. Determinants of Commercial Bank
deposit a case of Commercial Bank of Ethiopia 2
2. Offering land revenue or insurance premium: If the banks offer to pay land revenue or insurance
premium out of the interest earned on deposits, some persons may be inclined to put deposits of such
amounts as would earn enough interest to meet their land revenue or insurance premium liability. To
attract deposits these types of services are worth providing.
3. An investment service: Some savers have neither the inclination nor the time to select an appropriate
portfolio of financial investment. Banks can select the portfolio of investments on their behalf, keep
the securities in safe custody, collect Interest/dividend income and even fill income-tax forms; with
such services offered, some savers would be inclined to keep their liquid funds in the form of
deposits.
4. Some persons like farmers get their incomes say once or twice in a year, while their expenditure is
spread over the whole year. If banks could collect deposits from them at the harvesting season, and
assure them regular withdrawals during the year, farmers may be inclined to keep deposits with the
banks. This scheme would ensure safety of their funds, prudence in their management and certainty of
regular monthly means to meet their current liabilities. In addition, they would earn some interest.
With a sympathetic and persuasive approach, farmers could be attracted to such a scheme.

22
5. While giving loans to farmers and small sector, the banks could provide them with facility of
purchases from recognized dealers instead of giving those cash. In this case, the dealers could send the
bills to the banks, which would debit the accounts of the loan receivers. Some banks have introduced
agro-cards with such a purpose in mind. If such facilities are provided to others also, the customers
would use bank money rather than currency for making payment and once they form this habit, they
would be induced to keep their transaction balances in the form of deposits rather than in the form of
currency. According to (Bhatt, 1970), these are some of the new deposit schemes which, if introduced,
could raise the rate of saving as well as the rate of growth of bank deposits. To the extent to which the
rate of saving is raised, the growth rate of the economy would be higher. To the extent to which the
deposit growth rate is raised, the community would have more effective control over the allocation of
financial resources for plan purposes.Determinants of Commercial Bank deposit a case of
Commercial Bank of Ethiopia
2.3. Factors affecting Deposit mobilization of commercial Banks
There are several factors affecting deposit mobilization in commercial bank in various countries. Firms-
specific variables and macroeconomic variables have affected deposit mobilization in commercial bank.
The study of (SM Nahidul et al, (2019), indicate that number of banks branches, deposit interest rate,
loan-to-deposit ratio, Gross Domestic Products (GDP) growth rate, inflation rate has no significant
impact on the banks deposit growth rate of the private commercial banks in Bangladesh. Similarly, Sri
Lanka,), several demographic variables, such as, gender, occupation, education level and income
significantly affect for deposit mobilization and deposit interest rate, security, branch expansion,
services, technology and awareness have significant and positive relationship between deposit
mobilization (Prasansha, (2018).

In Ethiopia the study of Robena (2020); Aberham (2019);Belay, (2019); Fekadu (2019); Misrak (2019);
Tenaye (2019); Ketema (2017); Andenet (2016); Ashenafi (2016); Kebede (2016) and Sisay (20130
reveled that, branch expansion, deposit interest rate, government expenditure, money supply, inflation,
liquidity ratio and return on asset have the most determinant factors that affect deposit mobilization in
Commercial bank of Ethiopia wither private or public or both commercial banks in Ethiopian context.

A. Number of Bank Branches (BE): Banks with larger branch networks can also enjoy economies of
scale in operation, management, and advertising expenditures. These come from having access to a
large set of financial resources, and also a large employee base, which increase the efficiency of labor.
Also the costs of screening for loans are reduced if a bank can spread these costs over a larger

23
 potential customer base. Banks with wide branch networks also have the advantage of being able to
spread their risks geographically. To sum up, nowadays, due to the fierce competition among banks in
Ethiopia to mobilize deposit and in response to the problem of mobilizing enough savings, many
banks have developed various means of generating deposits. One of the mechanisms for savings
mobilization exploited by the banks trying to reach to the general public by increasing the number of
their branch. In Ethiopia banks‟ branch expansion has positive association with better- off economic
area and urban bias. A spatial analysis of financial access reveals that there are significant variations in
bank outreach across different regions of the country. Banking facilities are concentrated in the capital
city of the country (Jarso, Rao and Ravi 2015). The pervasive availability of banks with large branch
networks implies certain advantages to institutions that grow their networks. One source of the
advantage is the role of branches expansion are resource mobilization and increase consumer’s
basement satisfaction to a bank (Kuehn, 2014). Commercial banks use different strategies to strength
the level of deposits and number of customers. One of the strategies is branch expansion at different
location of home country as well as opening of multinational banks at host country. Branch expansion
is opening new branches or service outlets inside and outside the country. (Carlson and
Mitchener,2005), Commercial banks in Ethiopia expend huge investment budget for branch expansion
in and outside Addis Ababa yearly, because branch expansion play significant role for resource
mobilization and customer attraction. Opening bank branches at different locations facilitate for
proximity to customers, supports the bank mobilize deposit and attract more customers. However,
before opening branch at a certain location the marketing department of a bank conducts feasibility
study and identify the target market. Then assignment of employees and customer attraction endeavor
will take place. Therefore, branch expansion to banks is very crucial with regard to deposit
mobilization and customer attraction.
B. Bank profitability/ Return on asset /ROA

Profitability is the ability of any business to earn profit for its owners (Singh, 2015). The profitability of
banks is related to the transformation of inputs (deposits) to outputs (loans). Profitability is the bottom
line of efficiency of banks (Worede, 2016). One of the principal activities of commercial banks is to
grant loans to borrowers. Because loans are among the highest yielding assets a bank can add to its
balance sheet, and they provide the largest portion of operating revenue. The higher the volume of loans
extended the higher the interest income and hence the profit potentials for the commercial banks
(Abdissa, 2016). Profitability is crucial for a bank to maintain ongoing activity and for its shareholders to
obtain reasonable returns. The resources obtained by banks through deposits have to be deployed
properly in the form of loans and advances to get the maximum return out of it, in terms of profit

24
(Venkatesan,2012). Commercial Banks should maintain their competitive position by resource
mobilization and deployment of same to various shot, medium and long term financing. The more the
loans the banks disburse the more profit they could make. Banks do not have a lot of their own money to
give as a loan. They depend on customer deposits to generate funds for granting loans to other
customers. So a deposit mobilization scheme would encourage customers to deposit more cash into bank
and this money in turn will be used by bank to disburse more loans and generate additional revenue.
Kazi (2012) also confirmed that “Banks depend on customer deposits to generate funds for granting
loans to other customers”. Moreover, commercial banks play their pivotal role in the economy through
facilitating financial payment system, granting loans to existing and potential investors, facilitating
financial and economic integration between different nations through import & export and above
allsupport the economic growth in industrialization, unemployment reduction and inflation
regularization. (Richard Tuyishime, Dr. Florence, MEMBA and Dr. Zenon MBERA 2015).

C. Deposit interest rate (DIR): An interest rate is the amount of interest due per period, as a proportion
of the amount lent, deposited, or borrowed (called the principal sum). The total interest on an amount
lent or borrowed depends on the principal sum, the interest rate, the compounding frequency, and the
length of time over which it is lent, deposited, or borrowed. The interest rate is defined as the
proportion of an amount loaned which a lender charges as interest to the borrower, normally
expressed as an annual percentage and it is the rate a bank or other lender charges to borrow its
money, or the rate a bank pays its savers for keeping money in an account. The annual interest rate is
the rate over a period of one year.One of the deposit attraction techniques used by commercial banks
to get more deposits from the surplus sector is by providing attractive interest payment on savings,
and which is reasonable and acceptable to the owner of the money. The dynamic economic situation
and the shift of depositors to risky investment to earn higher profit derived Commercial banks to
device alternative strategies to improve their deposits. Because, the type of bank, type of interest-
bearing account and deposit balance can play a significant role in savings rates. Offering higher
interest rate on saving attract customers to return back to banks. Savings account deposits that earn a
higher savings interest rate will grow at a faster pace. . Savings rates can also differ by account
balance. More deposits may qualify for a higher savings rate. Khalayi, Ondiek, and Musiega (2014)
said “in order to mobilize savings on large scale, affirms that cooperatives must offer interest rate
that is attractive to savers.”
D. Gross Domestic Product (GDP): Economic growth is an economy that determines the increase or
development of production of goods and services from time to time. It is usually measured on the
basis Gross Domestic Product (GDP) as stated by Yanne et al. (2007). In the light of life-cycle

25
 analysis, GDP growth will result in an increase of aggregate savings, because saving increases the
life time earnings and savings of younger age groups relative to older age groups (Athukorala and
Sen, 2004). Thus, Countries with higher GDP growth rates are expected to have higher savings than
countries with lower growth rates. Hence, Gross Domestic Product (GDP) has significant positive
contribution to saving rate or deposit rate. However, the size of this effect is likely to decline as GDP
growth raises and even become negative for rich countries where high return on investment than
deposit interest income is available. ( Epaphera,2014).
E. Exchange Rate (EXR): Banks play their vital role in the development of national economy through
both local and foreign currency generation and deployment of same to those who need it. They
facilitate financial settlement through the payment system, and provide a means for international
payment. Foreign currency is another form of resource mobilization for which commercial banks
strongly strive to mobilize acceptable hard currency. Foreign currency can be generated in the form
of remittance or International Money Transfer, Export, Foreign Direct Investment, acquisition of
existing company by foreign company, borrowing in hard currency, and through gift from abroad.
Export policy of a country plays its role in attracting foreign companies as well as domestic
exporters. Adoption of good market system in the economy also boosts foreign currency generation.
However, commercial banks should devise way to attract foreign currency or the scarce resources.
Because, financial performance by use offoreign currency equally contribute to the profit of banks
mainly through L/C(Letter of Credit), CAD (Cash Against Document), and TT (Telegramming
Transfer), Kimberly Amadeo (2013). Commercial banks should facilitate international trade to
support countries with comparative advantage and in the meantime generate foreign currency which
part and parcel of deposit growth. According to Popper (1996) exchange rate fluctuations affect
banks both directly and indirectly. The direct effect comes from banks’ holdings of assets (or
liabilities) with net payment streams denominated in a foreign currency. Foreign exchange rate
fluctuations alter the domestic currency values of such assets. This explicit source of foreign
exchange risk is the easiest to identify, and it is the most easily hedged. Exchange rates are quoted as
foreign currency per unit of domestic currency or domestic currency per unit of foreign currency
(Bishop, 2006). Exchange rate allows denominating the cost or price of a good or service in a
common currency. As Thomas (2014) explanation, the term depreciation and appreciation is used to
show the decrease and increase in the value of currency. Depreciations a decrease in the value of
currency relative to another currency. Appreciations an increase in the value of a currency relative to
another currency. The main factors that influence exchange rate are: inflation, interest rate,

26
 speculation, and change in competitiveness, balance of payment, government debt, government
intervention and Economic growth / recession.
F. Inflation rate: Inflation refers to an overall increase in the Consumer Price Index (CPI), which is a
weighted average of prices for different goods. The set of goods that make up the index depends on
which are considered representative of a common consumption basket. Therefore, depending on the
country and the consumption habits of the majority of the population, the index will comprise
different goods. Some goods might record a drop in prices, whereas others may increase, thus the
overall value of the CPI will depend on the weight of each of the goods with respect to the whole
basket. Annual inflation, refers to the percent change of the CPI compared to the same month of the
previous year. Investors with surplus funds hold on to assets which can appreciate in value rather
than money whose value are frequently eroded away. Empirical evidence from Latin American
countries as stated in the World Development Reports indicates that inflation is an implicit tax on
depositors and has the capacity to reduce profits through low deposit rates. A strong correlation
exists between real interest rates and inflation as both can impact on deposits and savings. The
structuralism, however, argues from the effect of changes in the socio-political, economic and
institutional structures with the view to increasing growth in the economy of market failures”.
(Kirkpatrick and Nixon, Beim 2001) expresses the most popular view held by economists by
characterizing on int1ationary period as the period of uncertaint

27
According to SM Nahidul et al, (2019) investigates the impact of firms-specific variables and
macroeconomic variables on the deposit mobilization of private commercial banks in
Bangladesh using panel data regression methodology. The results of this study provide evidence
that total deposit (as measured by company size) has significant negative impact on the deposit
mobilization (as measured by banks deposit growth rate) and broad money supply growth rate
has significant positive impact on the banks deposit growth rate whereas the rest of the selected
variables i.e. number of banks branches, deposit interest rate, loan-to-deposit ratio, Gross
Domestic Products (GDP)growth rate, inflation rate have no significant impact on the banks
deposit growth rate of the private commercial banks in Bangladesh.

Helani and Prasansha (2018) investigate the most effective factors affecting deposit
mobilization, followed by a random sampling method, in which 120 deposit account holders
were selected as a sample from three different convenient sample areas. The Questionnaires are
equipped with questions to obtain primary data. The data has been analyzed using “descriptive
statistics” and “regression analysis”. The study reveals that, there is a significant and positive
*relationship between deposit mobilization and deposit interest rate, security, branch
expansion, services, technology and awareness. Moreover, there is a significant relationship
between living area and the number of deposits and the demographic variables, such as, gender,
occupation, education level and income significantly affect for deposit mobilization.

Robena (2020) investigates that determining factors deposit mobilization of private commercial
banks in Ethiopia by using a balanced panel data of 10 private commercial banks from 2009 to
2018. In preparing this research only secondary information has been used and explanatory
research approach, with a quantitative research method was used to establish the causal effect
relationship between determining factors (variables) and deposit mobilization of private
commercial banks.
Aberham (2019) investigates an assessment of determinants of mobilization of deposits in
CBE. The study used a cross-sectional design by collecting financial data of the years 1981-
2012 on the independent variables (Income, expense, asset, liability, reserve, loans and
advances and consumer price index). Descriptive and econometric analyses are done by using
E-views 5and Excel 2007. Belay (2019)investigate the determinants of deposit mobilization in
the case of Commercial Bank of Ethiopia. Explanatory type of research design, descriptive
statistics, correlation matrix and multiple regression technique were used based on time series
secondary data collected from Commercial Bank of Ethiopia, MOFED and National Bank of
Ethiopia for the sample year from 1995 to 2016GC.

Fekadu (2019) examines the factors affecting deposit mobilization of Dashen Bank specifically
on branches of Addis Ababa. Five years’ deposit performance of the bank indicates that total
deposits of each year increased because the bank worked hard on branch expansion which is
identified in this study as one of the independent variables that contributed for deposit
mobilization. Six key independent variables, namely: Service Quality, Branch Expansion,
Interest Rate, Technology, Disposable Income, and Market Strategy are identified as factor of
deposit mobilization for Dashen Bank.

Misrak (2019) studies determinants of commercial banks deposit mobilization in Ethiopia for
the periods 2003-2016. From total of eighteen Commercial Banks which are engaged in
commercial bank activities, seven selected based on the historical time formation of banks. The
researcher adopted Quantitative research approach. Bank specific and macroeconomic variables
were analyzed by using the balanced panel random effect regression model. Different
diagnostic tests (test for assumption of Homoscedasticity, Autocorrelation, Normality, average
value of the error is zero and independent variables are non-stochastic) were conducted to
check the appropriateness of the model.

Tenaye (2019) examine factors of Private commercial bank deposit growth in Ethiopia for the
overall context of private commercial banks in Ethiopia has less contribution for deposit
mobilization regarding with government owned bank and in order to achieve this objective, in
this study quantitative research approach has been used. Target population was eight Private
Banks in commercial activates, out of the sixteen Private commercial banks selected with 10
years back in the industry and registered by NBE under operation in Ethiopia, and selected
purposive sampling technique for the study. The panel data set for the study used secondary
source consisted of annual data spanning from 2008 to 2017 gathered from the National Bank
of Ethiopia. The dependent variable used to this study is deposit growth; explanatory variables
used in this study were number of bank branch, loan to deposit ratio, economic growth (GDP),
deposit interest rate, net interest margin, and age of company. Different diagnostic tests were
conducted to check the appropriateness of the model. Fixed effects technique has been applied
to find out the results of explanatory variables.

Andinet (2016) study is to examine factors influencing deposit mobilization in private

commercial banks in Ethiopia. In doing so, the study adopted quantitative methods research
approach using secondary data.The explanatory variables are number of bank branches, deposit
interest rate, liquid asset to deposit ratio, lagged value of bank deposits, net interest margin,
inflation rate and economic growth (GDP). The data for these variables were collected from the
respective private commercial banks‟ financial statements, national bank of Ethiopia, central
statistical authority and MOFEC of the sample year 2005/6 up to 2015/16.

Dereje (2017) investigates determinants of deposit mobilization in private commercial banks of

Ethiopia using panel data of six private commercial banks from year 2002/3 to 2012/13. The
study used both quantitative and qualitative research approach. Secondary financial data are
analyzed using multiple linear regressions models for the six bank’s deposit. Fixed or random
effect regression model was applied to investigate the impact of bank branches, exchange rate,
Real Gross domestic product, Capital Adequacy and Liquidity on private commercial banks
deposits.

The empirical results from regression analysis showed that bank branches, exchange rate, and
real gross domestic product affects deposit of the bank positively whereas, capital adequacy
and liquidity affect the deposit of the private banks negatively.
 Ketema (2017) investigates examines the determinants of commercial banks deposit
mobilization in Ethiopia for the periods 2000/1-2015/16. From total of seventeen Commercial
Banks which are engaged in commercial bank activities, seven selected based on the historical
time formation of banks. The researcher adopted Quantitative research approach. Bank specific
and macroeconomic variables were analyzed by using the balanced panel fixed effect
regression model. Different diagnostic tests (test for assumption of Homoscedasticity,
Autocorrelation, Normality, average value of the error is zero and independent variables are
non-stochastic) were conducted to check the appropriateness of the model.

2.4 Summary and knowledge gap

Based on the above theoretical as well as empirical review, deposit mobilization is the major
activities for all banks especially for commercial banks since their function is mobilizing deposit
to meet the required liquidity for credit customers of banks. But this too depends on the
availability of credit facilities which in turn depends on the level of bank deposit. It also revealed
that banks deposit can be affected by different factors such as bank specific and Determinants of
Commercial Bank deposit a case of Commercial Bank of Ethiopia macroeconomic factors.
While this study
focused on some of the bank specific and macroeconomic factors affecting bank deposits.
Theories on bank deposits are well available in various literatures. But the empirical studies on
bank deposit are rarely available especially in Ethiopia. According to the review, most of the
empirical studies done on the area of bank deposit and its determinants were done following
uprising of privatized economy system introduced in developing countries. As the result of this,
bank deposits become a challenge to commercial banks and investigating the factors influencing
it comes in practical. Based on socio economic factories of the individual countries, an important
gap still exists in the empirical literature about deposits and its determinants. All studies cited
above suggest that commercial banks deposit is determined both by bank specific factors and
macroeconomic factors. Some of the studies given more attentions to the macro determinants
rather than bank specific and the significance of the determinants identified by the studies are
completely different. Thus the researcher concludes that there is no perfect and generally
expected relationship between dependent in independent variables in all jurisdiction. To the
knowledge of the researcher there is no empirical studies done regarding to determinants of bank
deposit in the case of CBE. Although the research made by (Wubitu Elias, 2012) focused on only
branch expansion and deposit interest rate determinants by taking 10 years’ data to see the
impact on bank deposit. Since CBE is in the growth stage with opening of new branches
aggressively, using new technologies like e-banking, given attentions to public awareness
creation and investing huge amount of money for promotional activities were not analyzed well.
It is an essential of identifying the important determinants of bank deposits and its influence on
the growth of deposit by making empirical investigation. And finally, this study is different from
previous works done by others; specifically, it examines six determinants of bank deposit in CBE
and then assesses the quantitative and qualitative data for these determinants based on the
context Ethiopia. The focus is on bank deposits in CBE, and its determinants. The rationale for
this selection CBE as evidence was the larger proportion of bank deposits are on the hands CBE.
2.5. Conceptual framework
Figure 1conceptual framework

Bank specific variables Macroeconomic variables

bank number
profitability
of branches
efficiency of banks deposit interst rate
bank size inflation

bank age political instability

liquidity GDP
depndnet varibale
deposit
moblization

Source: adopted by researcher form different article rivews

2.6. Hypothesis of the study
 H01 Number of bank branch have significant positive effect on deposit mobilization of
banks in Ethiopia
 H02. profitability have significant positive effect on deposit mobilization of banks in
Ethiopia
 H03. Efficiency have significant positive effect on deposit mobilization of banks in
Ethiopia
 H04. Age have significant positive effect on deposit mobilization of banks in Ethiopia
 H05. Bank size have significant positive effect on deposit mobilization of banks in
Ethiopia
 Liquidity of banks has positive significant effect on banks deposit mobilization
 H06. Deposit interest rate have significant positive effect on deposit mobilization of
banks in Ethiopia
 H07. Inflation have significant negative effect on deposit mobilization of banks in
Ethiopia
 H08. GDP have significant positive effect on deposit mobilization of banks in Ethiopia
 H09: political instability has negative significant effect on deposit balance of banks in
Ethiopia
 CHAPTER THREE:RESEARCH METHODOLOGY

3.1Research Design
In research have a number of research designs but the most common are descriptive, correlation,
explanatory and exploratory designs (Creswell 2003). All of the designs to be selected depends
on objective of the research. Because the objective of this research is to assess the trend of
deposit in Ethiopian banks and to examine its determinants. The research had used both
descriptive and explanatory research design. Descriptive research design is used to assess the
trend of deposit in the countries bank and explanatory is used to determine the cause and effect
exist between dependent (deposit mobilization performance) and independent variables.
3.2 Research approach
A research approach can be divided in to three as quantitative, qualitative and mixed approaches.
An approach to be used depends on the nature of data to be used. Hence the data was collected
from financial statements of banks, it is numeric in nature. Therefore the research approach used
in the study was quantitative approach.
3.3 Target Population, Data Source and Sampling

In Ethiopia recently have one public and twenty five private commercial banks. The study
focuses on both public and private commercial bank of Ethiopia. The total population of the
study was the 26 listed and registered banks in national bank of Ethiopia.
Form a total of 26 banks the researcher has taken 15 commercial banks namely commercial bank
ofEthiopia, Awash International Bank, Dashen Bank, Bank of Abyssinia, Wegagen Bank, United
Bank, Nib International Bank, Lion International Bank, cooperative bank of ormia, Oromia
International Bank, Zemen bank, Buna International bank, Birhan International Bank, Abay bank
and Addis International Bank, which had a financial report for the period of 2012-2020. This
implies the researcher had applied a purposive sampling method.becuese purposive sampling
method is judgmental,selective or sudjective sampling it is a form of non-probabilty sampling in
which researchers rely on their own judgment when choosing members of the population to
participate in their survice,so my data collected and included so many banks and data by use
purposive sampling method,
3.4. Type, Sources and method of Data collection
In this study, secondary data was used to assess determinant factors that affect deposit
mobilization of both public and private commercials banks in Ethiopia. The data was extracted
from financial reports or statements of commercial banks in Ethiopia which is found form
national bank of Ethiopia, commercial banks annual report and Ethiopian statistical agency
reports. The researcher had used the annual report of commercial banks in Ethiopia for the period
of 2012- 2020.
3.5 Method of Data Analysis
The researcher analyzed the collected data by using both descriptive analysis and regression
analysis methods using Stata 16.
3.4.1. Descriptive Analysis
Descriptive statics is required to analysis the minimum, maximum and mean value of
variables of the study
3.4.2. Regression Analysis
A panel data models had been used in the study. Even if there are three most commonly
used models in panel data, the research had selected pooled OLS after the required
comparison is carried out. The inferential statics regression analysis is carried out to find out
the effect of all explanatory variables on the dependent variable.

3.6 Variables Measurement and model of the study

3.6.1 Variable Measurement
The main variables in the analysis for which data collected are dependent, independent.
Dependent variable in this case total bank deposit which is affected by independent variables.
Independent Variables in this case are factors that mostly affect the commercial banks deposits.
These are deposit rate, overall inflation rate, bank size, bank age, efficiency of the bank, bank
profitably, number of branches, liquidity, political instability, gross domestic product (GDP),
individual foreign remittance and using financial technologies.
Variable measurement
Name of variable Measurement Expected sign
Dependent variable
Deposit mobilization Deposit balance of banks
(DM)
Independent variables
Liquidity Liquid asset/ current +
liability
Efficiency Operating expense/ +
operating revenue
Bank age (AGE) Age +
Bank size(size) total asset +

Bank profitability(ROA) Net income/ total asset +

Branch Expansion(BE) Number of banks branch +

Deposit interest rate(DIR) interest rate +

Gross Domestic Product GDP +
growth rate(GDP)
Inflation (INF) INF -
Political instability PIS -
3.6.2 Econometrics model of the study
In a panel data there are three basic commonly used type of models. These includes pooled OLS,
random effect and fixed effect model. Unlike other types of data’s, in panel data’s the model is
selected based on result of model comparison test which includes LM test, F test and houseman
test. so the model used in the study will be selected after comparison test result and the general
model of the study is as follows:

DEP=B0+B1ROA+B2SIZE+B3EFF+B4AGE+ B5LIQ+B6BRA+B7GDP+B8INF+B9DIR+BPIS+ε
WERE:
DEP= deposit performance or mobilization
ROA= return on asset (profitability of banks)
SIZE= banks size
AGE= age of banks
EFF= operating efficiency of banks
LID= liquidity of banks
BRA= number of branches
GDP= gross domestic product
INF= inflation
DIR= deposit interest arte
PIS= political instability

3.7. Diagnostics Test Analysis

Diagnostic tests were performed to check for validity of the parameters. To test the validity of
the paper,the researcher has checked of the variables were heteroscedasticity, autocorrelation,
normality andmulticollinearity problem or not. To maintain the data validity and robustness of
the regressed result ofthe research, the basic classical liner regression model (CRLM)
assumptions must be tested for identifying any misspecifications and correcting them so as to
enhance the research quality (Brooks, 2008). There are different CLRM assumptions that needs
to be satisfied and that are tested in this study.

3.7.1. Heteroscedasticity
The condition of classic linear regression model implies that, there should be homoscedasticity
betweenvariables. This means that, the variance should be constant and same. Variance of
residuals should beconstant otherwise, the condition for existence of regression,
homoscedasticity, would be violated andthe data would be heteroscedasticity (Brooks,2008). To
check for this, White test were applied. Thewhite tests of the null hypothesis that, the error
variances are all equal versus the alternative that the errorvariance are a multiplicative function
of one or more variables. Hence, following the general nullhypothesis of white tests, the
researcher develops the following hypothesis to check the presence ofheteroscedasticity:

H0: homoscedastic error term

H1: heteroscedasticity error term

Decision Rule: RejectH0ifp-value greater than significance level. Otherwise, do not reject H0.
3.7.2. Autocorrelation

Another basic assumption of regression model says that, the covariance between error terms
should bezero. This means that error term should be random and it should not exhibit any kind of
patterns. If thereexists covariance between the residuals and it is non-zero, this phenomenon is
called autocorrelation (Brooks, 2008). To test for auto correlation, had used
wooldrigeautocoreelation test

Hypothesis of this test are: -

The following general null hypothesis of Breusch–Godfrey serial correlation LM test, the
researcherdevelops the following hypothesis to check the absence of autocorrelation:

H0: No autocorrelations errors

H1: Autocorrelations errors

Decision: Reject H0 if p-value greater than significance level. Otherwise, do not reject H0.
3.7.3. Normality
Normality test was applied to determine whether a data is well-modeled by a normal distribution
or notand to compute how likely an underlying random variable is to be normally distributed. If
the residuals are normally distributed, the histogram should be bell-shapes and the Jarque-
Berastatistic would not be significant. This means that the p-value given at the bottom of the
normality test screen should be greater than 0.05 to support the null hypothesis of presence of
normal distribution at 5% level. Descriptive statistics was undertaken to examine the distribution
of data. Upon examination the Jarque- Bera (JB)test uses to know the property of anomaly
distributed random variable that the entire distribution ischaracterized by the first two moments
for mean and variance.

H0: Error term is normally distributed

H1: Error term is not normally distributed

Decision: Reject H0 if p-value of JB smaller than significance level. Otherwise, do not reject H0

3.7.4. Multicollinearity
Multicollinearity is present when VIF values are larger than 10. Furthermore, the critical value
canbecalculated by 1/VIF. If this value is below 0.1, this would mean that more than 90% of the
variation in
the variable is explained by the other variables. The variable(s) with VIF values larger than 10 or
1/VIFvalues below 0.1 should be excluded from the analyses (Rabe-HeskethandEveritt, 2004)
Different empirical studies show different argument towards the multicollinearity problem.
Malhotra(2007) stated that multicollinearity problems exist when the correlation coefficient
among variablesgreater than 0.75. Cooper and Schindler (2009) suggested that a correlation
above 0.8 betweenexplanatory variables should be corrected for. Lastly, Hairetal (2006) argued
that also correlationcoefficient below 0.9 may not cause serious multicollinearity problem. A
correlation matrix was used inthis study to ensure the correlation between explanatory variables.
Then balanced panel data models were applied to control for multicollinearity.
 CHAPTER FOU: ANALYSIS AND INTERPRETATION OF THE STUDY
4.1. Introduction
This chapter incorporates all necessary analysis and interpretations which includes trend analysis
of the industry average, descriptive and correlation analysis, all classical linear regression
(CLRM) analysis assumptions, panel model comparison tests and final regression result analysis.

4.2. Trend analysis of deposit performance of bank industry in Ethiopian

The deposit performance of banks in Ethiopia had been shown a tremendous increasing for the
past 9 years 2012-2020). The industry average was determined by adding the deposit
performance of each banks deposit in each year. As indicated in the below paragraph it had been
continuously grown from year to year.

Figure 4.1 trend analysis of deposit of banks

Object 1

4.3. Descriptive analysis test

The following table summarizes the descriptive statics of the research. As indicated in the
following table, the number of observations is 135 which indicates as the data is balanced which
is collected from 15 commercial banks annual report for the period of 2012-2020.
Table 4 1 descriptive statics

. summarize DEP AGE INTR INF GDP BRA LQD EFF SIZE ROA

Variable Obs Mean Std. Dev. Min Max

DEP 135 12732.88 10956.07 211.4 53493.87

AGE 135 15.33333 11.89695 1 57
INTR 135 7.194444 1.620953 5.75 9
INF 135 .3673333 .2650403 .077 .77
GDP 135 .1135556 .0267539 .087 .17

BRA 135 256.6222 321.6129 5 1920

LQD 135 32.77043 13.596 13.16966 76.74084
EFF 135 217.4956 614.2249 11.50831 4635.69
SIZE 135 4.203709 .5416603 3.092686 5.913432
ROA 135 2.883009 .6930746 1.008748 5.126916

Sources: Stata output,20-23

The deposit of banks in the country was collected directly from national bank of Ethiopia annual
report. As indicated in the above table 4.1, the deposit performance of commercial banks in
Ethiopia ranges from 211.4 million which is scored by Addis international bank in 2012 and the
maximum deposit was 53493.87 million which is registered by Dashen bank in 2020. The
average value of deposit in Ethiopian commercial banks indicates 12732.88 which implies there
is high difference in the deposit balance of banks in the study area and its deviation had been
10956.07. shows a minimum value of 1.ooo

The other basic variable which is expected to have a significant influences is profitability of the
bank. As indicated in the above table the profitability of banks which is measured using ROA
shows 1.008 minimum value and its maximum value is 5.126. its value has an average score of
2.88 with a deviation of 0.693.

Size of banks was measured using log of total asset. As indicated in the summery table size of
the bank ranges from a minimum value of 3.092 which is scored by Abay bank in 2012 which is
the beginning year f the bank and the maximum value (5.913) was reported by commercial bank
of Ethiopia in 2022 with industry average value of 4,20 which has a deviation of 0.541 which
implies as bank’s in the country doesnot have that much variation.
 4.4. Correlation Analysis -among Variables
Table 4 2 correlation test result

. pwcorr DEP ROA SIZE EFF LQD BRA AGE GDP INF INTR PIS, sig

DEP ROA SIZE EFF LQD BRA AGE

DEP 1.0000

ROA -0.3770 1.0000

0.0000

SIZE 0.7365 -0.2802 1.0000

0.0000 0.0010

EFF -0.2522 0.2041 -0.0773 1.0000

0.0032 0.0176 0.3729

LQD -0.6921 0.2145 -0.2243 0.1189 1.0000

0.0000 0.0125 0.0089 0.1695

BRA 0.4963 -0.4110 0.8610 -0.1459 0.0192 1.0000

0.0000 0.0000 0.0000 0.0914 0.8248

AGE 0.8058 -0.2767 0.8810 -0.1836 -0.3225 0.6975 1.0000

0.0000 0.0012 0.0000 0.0330 0.0001 0.0000

GDP 0.2719 -0.1998 0.2214 0.0195 -0.2579 0.1442 0.1597

0.0014 0.0201 0.0099 0.8225 0.0025 0.0951 0.0642

INF 0.2406 -0.2051 0.2005 0.0229 -0.2127 0.1669 0.1359

0.0049 0.0170 0.0197 0.7919 0.0133 0.0531 0.1160

INTR 0.6015 -0.2601 0.4980 0.1061 -0.4963 0.3663 0.3056

0.0000 0.0023 0.0000 0.2209 0.0000 0.0000 0.0003

PIS -0.0659 0.0773 -0.0608 -0.0158 0.0822 -0.0694 -0.0374

0.4477 0.3729 0.4840 0.8556 0.3432 0.4239 0.6670

GDP INF INTR PIS

GDP 1.0000

INF 0.7138 1.0000

0.0000

INTR 0.5602 0.4511 1.0000

0.0000 0.0000

PIS 0.2984 -0.2753 -0.0518 1.0000

0.0004 0.0012 0.5510
-
The above table indicates how the variables of the study are correlated to each other. As
indicated the dependent variable which is deposit of banks which is measure with its log value -
has a positive correlation with size of the bank, branch size, age, GDP, exchange rate and
inflation however it negatively correlates with profitability, efficiency, liquidity and political
instability.

4.5. Classical Linear Regression Model (CLRMA) Assumptions

Based on proceeding with the discussion of the regression results, the preferred regression
model was subjected to a number of diagnostic tests in order to evaluate its validity. Before
selecting and interpreting of the main result of the study testing the classical linear
regression which includes, normality assumption, multicollinearity assumption,
heteroscedasticity assumption, autocorrelation or serial correlation assumption and variable
omission test are the main. model is mandatory. For achieving those test the researcher had
carried out the following test.
4.5.1. Normality test (ut n (0, Σ2))
The first assumption of a classical leaner regression model is that residuals are normality
distributed. Normality assumption is required in order to conduct single or joint hypothesis tests
about the model parameters (Brooks, 2014). As stated in Gujarati (2003) and (Brooks, 2008),
Normality of the residual shows that the estimator is unbiased, minimum variance and consistent.
Shapiro wilk test was used to test normality distribution of error term. Therefore, Normality test
with the null of residuals is behaving normally was conducted using Sharipo-Wilk test and
histogram.
Table 4 3 normality test result

. predict r, residual

. swilk r

Shapiro-Wilk W test for normal data

Variable Obs W V z Prob>z

r 135 0.98867 1.205 0.420 0.33715

Source: Stata output, 2022

 4
3
Density
21
0

-.4 -.2 0 .2 .4
Residuals

Source: Stata 15 output, 2022

Result of this test proved that the residuals are normally distributed hence the p value is 0.3315

Therefore, the researcher had conformed as residuals are normally distributed. In addition to this
the above histogram picture also indicates as the residual is normality distributed because it is
perfect bell shaped.

4.5.2. Multicollinearity test

The second assumption of the classical linear regression model is that the explanatory variables
are independent of each other. It is the maximum correlations exist between two or more
independent variables in the model. If there is a multicollinearityproblem, it indicates that, the
effect of one variable is also affected by another variable in the model. It means using the OLS
model is impossible because the explaining power of the explanatory variable on the dependent
variable will be very weak (Churchill and Iacobucci 2005). Therefore, this will violate the basic
assumptions of the linear regression model which states, the effect or coefficient of one variable
is estimated by considering other variables as constant (Kumar1975). There is no clear cut off
point for multicollinearity decision, but various researchers have given their own maximum
correlation to be allowed between two variables. For example, Haier et al (2006) determines the
correlation between those variables to be below0.9, Kennedy (2008) has also stated the
correlation should have to be below 0.7. On the other hand, rules of thumb state the value
shouldn'tbe above 10.

There are various methods like Farrar–Glauber test, Condition number testand Perturbing test
which helps to detect the multicollinearity problem. However, as recommended by Wichers,
(1975), Robert (2007) variance inflation factor (VIF) is the most precious method for
determining the collinearity power of each variable in the model. Therefore, this research has
also applied the variance inflation factor (VIF) method.

The test is made with the null of that, the predictor variables are not correlated with each other.
The output of the study shows all variables are below 10which is a rule of thumb. According to
the rule of thumbs, the value should have to be below 10. The highest VIF value (i.e. 8.3) of this
study is obtained for bank size followed by the age log which logged to avoid thecollinearity
with other variables. Therefore, the model is free from such a problem.
Table 4 4multicollinearity test result

Vif
Variable | VIF 1/VIF
-------------+----------------------
SIZE | 8.30 0.065347
agelog | 7.24 0.138124
BRA | 6.68 0.149640
GDP | 5.88 0.170008
INF | 4.56 0.219340
INTR | 3.31 0.301690
PIS | 2.64 0.378488
LQD | 2.17 0.460836
ROA | 1.50 0.665307
EFF | 1.19 0.837145
-------------+----------------------
Mean VIF | 5.05

Source: Stata 15 output, 2022

4.5.3. Heteroscedasticity test
Heteroscedasticity test states that the variance of the residual is constant or there is homogeneity
among variances (Brook 2004). If this assumption is not fulfilled, the OLS estimator will not be
BLUE. There are two ways of dealing with this problem. These are robust the standard error and
weighted least square method. Heteroscedasticity test is a test made with the null hypothesis of
that, variables are homoscedasticity in nature. For checking that, the researcher had applied the
Breusch- Pagan test.

Table 4 5heteroscedasticity test result

. hettest

Breusch-Pagan / Cook-Weisberg test for heteroskedasticity

Ho: Constant variance
Variables: fitted values of log1

chi2(1) = 0.43
Prob > chi2 = 0.5141

Source: Stata 15 output, 2022

Because the result of the study or the test is insignificant ( chi2) is insignificant the researcher
accepts that there is no Heteroscedasticity problem in the study.

4.5.4. Serial Correlation Test (Autocorrelation Assumption Test)

This assumption states that the covariance of the disturbance term between cross sections or time
is zero. It means the errors are uncorrelated with each other. If this assumption is not fulfilled;
the errors will be serially correlated. If the problem exists and ignored, the estimation will be
inefficient and it will not be BLUE. There are various methods for checking autocorrelation.
These are the Durbin–Watson test, the Breusch–Godfrey test and Wooldridge test. Therefore,
this research has used Wooldridge test for autocorrelation.

Table 4 6 serial correlation test result

serial DEP ROA SIZE EFF LQD BRA AGE GDP INF ERT INTR PIS

Wooldridge test for autocorrelation in panel data

H0: no first-order autocorrelation

F( 1, 14) = 93.217

Prob> F = 0.4725

Source: Stata 15 output, 2022

Autocorrelation test is made with the null of that, there is no first order autocorrelation. The
output with Prob> F = 0.4725 (table 5.7) implies that there is no serial correlation among
variables used in this study.

4.4.5. Ramsey RESET test for variable omission of liquidity risk

The other essential classical linear model assumption to be satisfied is a variable omission test.
According to this assumption, only basic variables should be included in the model as well as
basic variables should not be dropped or omitted. For attaining this Ramsey RESETtest method
is used.

Table 4 7variable omission test result

Estatovtest

Ramsey RESET test using powers of the fitted values of log1

Ho: model has no omitted variables

F(3, 120) = 3.30

Prob> F = 0.2218

Source: Stata 15 output, 2022

Hence its Ramsey RESET test result as shown in above table is Prob> F = 0.2218. As a result,
the null of no variable omitted is accepted. Therefore, any additional variable isnot required in
the model.

4.6. Model Selection Test of the study

Once the assumptions of the classical linear regression model are tested and satisfied, the next
step is to differentiate the right model to be used. Basically, linear regression models for panel
data are categorized into three as pooled OLS, random effect model and fixed effect model.
Therefore, selecting the appropriate model based on the type of data and type of research is the
essential task of researchers. For doing so the researcher had applied various tests depending on
the models to be compared. The first comparison was made between pooled OLS and random
effect model.

4.6.1 Housman test result

Table 4 8 Housman test result

. hausman re fe

Note: the rank of the differenced variance matrix (9) does not equal the number
of coefficients being tested (11); be sure this is what you expect, or
there may be problems computing the test. Examine the output of your
estimators for anything unexpected and possibly consider scaling your
variables so that the coefficients are on a similar scale.

Coefficients
(b) (B) (b-B) sqrt(diag(V_b-V_B))
re fe Difference S.E.

ROA -.0121207 .009708 -.0218287 .0097847

SIZE .7267753 .7396358 -.0128605 .0406271
EFF -3.94e-06 .0000458 -.0000497 .0000121
LQD -.0059296 -.002852 -.0030776 .0005033
BRA -.0001651 -.0000825 -.0000826 .0000505
AGE -.0064001 .0195632 -.0259633 .
GDP -.1169159 .1957872 -.3127031 .5117505
INF .0722915 .0174201 .0548714 .0410243
ERT .0116171 .0039303 .0076869 .
INTR .0008988 -.0034982 .004397 .0091638
PIS .1204029 .0474116 .0729913 .0517852

b = consistent under Ho and Ha; obtained from xtreg

B = inconsistent under Ha, efficient under Ho; obtained from xtreg

Test: Ho: difference in coefficients not systematic

chi2(9) = (b-B)'[(V_b-V_B)^(-1)](b-B)
= 21.62
Prob>chi2 = 0.0102
(V_b-V_B is not positive definite)
The result reveals that (as indicated in the above table), the fixed effect model is the appropriate
models for this study hence the prob> chi2 is 0.0102. then from the F test was applied to make a
comparison between fixed effect and pooled OLS model.

4.6.2 Fixed effect vs pooled OLS test

Table 4 9 F test result

Fixed effect is the types of model that

F test that all u_i=0: F(14, 109) = 40.55 Prob > F = 0.0000

Source: Stata output, 2020

The result reveals pooled OLS will be the most appropriate model for this study. So pooled OLS
used.

4.6.3 The Result of pooled OLS regression model

At the above section the necessary analysis for descriptive statics, correlation analysis, classical
linear regression model assumptions and model comparison selection test were carried out.
Finally, the pool OLS model had been found more appropriate for the study.

The data for the study was extracted from annual reports of 15 commercial banks for the period
of 2012-2020, annual report of national bank of Ethiopia and Ethiopian statistical agency.
Finally, the result was described as follows.

As indicating in the table a total of 135 observations (9 years data for 15 banks) is used. The R2
of the study revealed that 92% of the dependent variable which is deposit mobilization is
explained well by the explanatory variables included in the study and the remaining 7.3% is not
explained by the variable. The adjust R2 also affirmed as it is 92.16%. the F statics also reveled
as it is significantly explained because its F test value(prob>F) is 0.000.

As indicated in the following table4.11 the constant of the over all variables effect on the depoit
performance is significant at 1% which reveals the variables has significant effect on deposit
performance.
Table 4 10 model fit result

. regress DEP ROA SIZE EFF LQD BRA AGE GDP INF INTR PIS

Source SS df MS Number of obs = 135

F(10, 124) = 158.42
Model 25.8627505 10 2.58627505 Prob > F = 0.0000
Residual 2.02430148 124 .016325012 R-squared = 0.9274
Adj R-squared = 0.9216
Total 27.887052 134 .208112328 Root MSE = .12777

Source: Source: Stata 15 output, 2022

As indicated in the above regression table, profitability of bank which is peroxide as ROA has a
positive significant effect on banks deposit performance. It reveals that assuming other variables
remaining constant increasing of profitability by a single unit or birr will lead to increase deposit
performance by 0.07 at 1% significant level. This implies profitability of bank is one of the basic
variables which determine the deposit performance of commercial banks in Ethiopia. The result
of this study had affirmed the findings of Rivalead and Thomas 1997; Hassan & Bashir 2003 and
Misrak, Alemayehu, 2019) who had found a significant positive effect of the variable on deposit
mobilization performance of banks.

The other variable used in the study was size of banks. Size of banks was measured using
logarithm of total assets. As indicated in the above table as the size of banks is increasing by a
single unit or 1 ETB, deposit of banks will increased by 0.1564 assuming other variables
remaining constant. This implies the bank become bigger and bigger the deposit of its customer
will increase as well. This leads to a conclusion that the customers trust on the bank will increase
when its size is increasing.
Table 4 11 pooled OLS regression result

DEP Coef. Std. Err. T P>t [95% Conf. Interval]

ROA .0703618 .0195247 3.60 0.000 .1090066 .301717

SIZE .1564549 .079714 1.96 0.052 -.0013214 .3142313

EFF 0001042 .0000196 1.30 0.000 -.0001431 -.

LQD .0101107 .0011959 2.45 0.000 .0124777 .3077437

BRA .0003076 .0000887 1.47 0.001 .0004832 .013209

AGE .8057875 .0931509 8.65 0.000 .6214159 .9901592

GDP -3.762111 1.000583 -3.76 0.000 -5.742544 -1.781677

INF -.1984261 .0889208 -2.23 0.027 -.022427 -.3744253

INTR .0930253 .0123972 7.50 0.000 .0684877 .1175628
PIS -.0703618 .0195247 -3.60 0.015 -.1090066 -.031717
_cons 3.129506 .3120866 10.03 0.000 2.511799 3.747213
Source: Source: Stata 15 output, 2023

Efficiency of the bank is measured as a ratio of operating expense to operating income. The
result of this study reveals that increasing in the efficiency of banks in Ethiopia will increase
their performance in attracting of customers deposit. As indicated in the above table increasing
the efficiency of banks will tend to increase the banks deposit performance by 0.0001042 at1%.
This implies efficiency is one of the basic variable which determines the bank deposit
performance in Ethiopia. The result of the study is supported by the findingsYakub and Abokor
(2020) which revealed a positive significant effect of efficiency on banks deposit performances.
Liquidity is the ability of banks to pay its debts immediately at its maturity with out any default
or with out enforcing of banks to sell its assets at its fear value than fir value. It is its ability to
cover its liabilities (basically current liabilities) using its current asset. It is measure as
liquidassetsdivided by current liability. The finding of this study revealed that liquidity has a
positive significant effect on banks deposit mobilization performance. This reveals depositors are
highly concerned on the payment performance of banks in the country. Assuming other things
remaining constant increasing the liquidity condition of the banks will lead to increase the
deposit performance of banks by .0101107 at 1% significant level. The finding of the study is
supported by the past study result of Herald and Heiko (2009), Nada(2010) Abreu and Mends
(2002).

Number of branches is another basic variable which had a significant effect on banks deposit
performance. The findings of this study reveals increasing in number of branches has a
significant effect on attraction of deposits of customers. Assuming other things remain constant
increasing in number of branches by a single unit tends to increase the deposit by .0003076 at
1% significant level.

Age of the bank implies the number of years in which the bank is in operation. As the bank age
in the operation is increasing, customers of the bank will increase which will increase banks
deposit performance. As indicated in the above regression table, increasing in banks age will lead
to increase deposit performance of banks by .8057875 at 1% significant level assuming other
things remain constant.

From macro-economic variables, GDP, inflation, exchange rate, interest rate and political
instability was included in the study to find out their effect on banks deposit performance.

GDP which is an indicator of economic growth was regressed and the result indicates this
variable has a negative significant effect on banks deposit. Assuming other things remaining
constant increasing GDP by 1 ETB will lead to decrease deposit by -3.762111 at 1%
significantlevel. The result of the study is inlinewith the findings of Tizita(2014) and Hadush
(2012). But it contradicts with the findings of Helani and Prasansha (2018).
Inflation had also a negative significant effect on banks deposit performance. increasing inn
inflation will decrease deposit of banks by -.1984261 at 5% significant level.

Interest rate used in this study was, the interest paid to deposit of banks. As indicated in the result
table, increasing in the interest rate to be paid by banks will increase banks deposit performance
by .0930253 at 1% significant level.
Finally political instability report of Ethiopia was regressed in the study. The result reveals as the
instability of the country’s increasing by a single unit, deposit of banks will decrease by
-.0703618 at 5% significant level.
Table 4 12 hypothesis result table

Variable Expected sign with significant Result Decision

effect
Profit (ROA) + + Accept
Size (Log of assets) + + Accept
Efficiency (EFF) + + Accept
Liquidity (LQD) + + Accept
Branch (BRA) + + Accept
Age (AGE) + + Accept
GDP + + Accept
Inflation (INF) - - Accept
Political instability (PIS) - - Accept
CHAPTER FIVE:MAJOR FINDINGS, CONCLUSION AND RECOMMENDATIONS OF THE
STUDY
5.1 Introduction
In chapter four, the researcher had tried to incorporate the analysis of the study with its
interpretation and hypothesis test results. In this chapter the major findings of the study,
conclusions drawn from interpretation and recommendations provided by the researcher for
various parties will be given.

5..2 Summary of Major findings and conclusions of the study

This study was conducted with main objective of evaluating the effect of various internal and
external factors effect on banks deposit mobilization performance of banks exist in Ethiopia.
Deposit performance which is measured using the log of total deposit of the banks was the
dependent variable. The explanatory variables incorporated in the study were bank specific
characteristics which includes profitability (ROA), efficiency, bank size, age , liquidity and
branch expansion and the macro economic variables which are expected to have a significant
effect and incorporated in the study were GDP, inflation, interest rate and political instability.

In this study the data was collected from annual financial statement report of 15 commercial
banks which are purposively selected and the study period was 2012-2020. The period was
decided based on the objective of to increase the number of banks. For achieving the objectives
a descriptive and explanatory research design was implemented. Descriptive statics is used to
check the minimum, maximum and mean value with its deviation of the variables and to assess
the trend of deposit performance in the country. Explanatory research design is used to examine
the effect of each explanatory variable on the dependent variable which is peroxide as deposit.

Before the main analysis of the study was carried out all necessary classical linear regression
analysis assumptions which includes the normality test, multicollinearity, hetterosckdaciticty
test, autocorrelation test, variable omission test were examined and satisfied. In panel data there
are three commonly used model. These are pooled OLS, random effect and fixed effect model.
The best model of the study should have to be selected among those models. So, the research had
make all necessary comparisons using LM largragin multiplier comparison test between OLS
and random effect, Housman test for fixed effect and random effect test and finally F test is used
to compare fixed effect and pooled OLS model. At the end the result of the study reveals pooled
OLS is the most appropriate model for this study.

5.3Major findings of the study

 Deposit performance of banks in Ethiopia is increasing tremendously. As indicated in chapter
fourfindings , the graph had shown as it is increasing at increasing rate. This implies banks in
Ethiopia are working well in mobilizing of these resources. However the descriptive statics
of the variable had shown as there is a significant difference between banks deposit
performance .because its value ranges from the minimum of 211.4 to the maximum of 53,493
million.
 The regression result of polled OLS indicates that, the dependent variable which is measured
using the log of total deposit had described by the dependent variable very significantly
hence its F value is 0.000. and the R2 also implies the 92% of the deposit performance is
explained by the variables incorporated in the study and the remaining 8% is explained by
the variables which had not been incorporated in the study.
 The regression result had also affirmed that all bank specific variables has a significant
positive effect on banks deposit performance. Specifically:
 Age of banks has the highest coefficient which implies it has the highest significant effect on
banks deposit followed by banks size which supports the biger the better theory of banks
deposit. Which implies banks with high age and big size have more power to attract
customers for deposit. In addition to that profit, efficiency and interest rate has also a positive
significant effect on banks deposit.
 The effect of macro economic variables except interest rate had been found to be negative
and significant. specially the effect of political instability is higher hence its coefficient is
very high. But increasing in the inflation and GDP had been also shown the same(negative
significant) effect on banks deposit performance.
5.4Recommendation of the study
5.4.1Recommendation to banks and regulatory bodies
 Banks in Ethiopia are recommended to increase their efficiency by minimizing of its
operating expense thorough increasing in the efficiency of employees thorough training
and motivation, increasing in their interest rate in order to attract more deposit and
announcing of their increment in their bank size and profitability. Because their positive
effect implies customers are more sensitive to deposit in such less efficient, small size,
new banks and less profitable banks.
 National bank of Ethiopia and other responsible bodies are also recommended to focus on
amendments of various policies like enforcing of banks in attracting more deposits by
increasing of their interest, increasing their sizes by enforcing of banks to increase their
capitals by issuing of new stocks etc. because this will lead to increase in the confidence
of banks hence it has a positive effect
 Banks are also recommended to give high attention for the negative effect of GDP,
inflation and political instability. Especially the effect of GDP implies customer
preference during development period will be changed. Their preference will be changed
to other investment opportunities than depositing of their money in banks. Therefore,
banks are recommendable to use more incentives to motivate customer during such
period.
 The negative effect of inflation can be also reduced by convincing of customers thorough
various incentives and informing of them as they will be more beneficiary if they deposit
it.
 Finally the effect of political instability indicates negative and significant. This implies
customers prefer to withdraw and to hold their money by themselves than depositing in
banks at instability time. Therefore banks and regulatory bodies are more recommendable
to increase the trust and confidence of customers on banks specially on such conditions
through advertising and other mechanisms.
 5.4.2Recommendation for future researches
The researcher had tried to make the research more complete and better in all conditions.
However non of research studies can be free from a gap. Therefore the researcher had given the
following insights for future studies

 The study was focused on examining the effect of various bank specific and macro
economic variables on banks deposit performance. However a number of variables
which are expected to have a significant effect had not been incorporated. Therefore
the researcher recommend future researchers to see the effect of other not incorporated
variable like, effect of advertising, friendship, banks service quality and technological
services etc.
 Increasing in deposit requirement from banks required by national bank of Ethiopia
had lead banks to unfair and aggressive competition. This is expected to lead banks for
various unethical and other activities. Therefore future researchers are recommended
to see the effect of increasing in required reserve and deposit amount on banks
competition.
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Appendix

APPENDIX
 1. Main data used in the study

I
D YEAR DEP DEP1 ROA SIZE EFF LQD BRA AGE GDP INF INTR PIS
247.74 0.08
1 2012 3.760285 5758.18 3.98005 5.20086 9 44.4326 559 49 7 0.341 5.75 -1.56
150.31 0.09
1 2013 3.877985 7550.66 3.31186 5.29102 5 47.866 732 50 9 0.135 5.75 -1.41
131.52 0.10
1 2014 3.923509 8385.11 3.13468 5.38762 2 58.4634 856 51 3 0.081 5.75 -1.34
114.54 0.10
1 2015 3.994359 9870.94 3.19376 5.48441 9 59.331 977 52 2 0.077 5.75 -1.5
67.642
1 2016 4.044483 11078.5 2.41876 5.58393 3 52.217 1310 53 0.11 0.67 5.75 -1.62
59.565
1 2017 4.146693 14018.2 2.19162 5.69026 1 44.0356 1375 54 0.15 0.71 9 -1.68
11.508
1 2018 4.311884 20506.1 1.00875 5.75883 3 54.7514 1578 55 0.17 0.77 9 -1.28
46.514 0.11
1 2019 4.371904 23545.3 1.7854 5.85302 3 52.16 1825 56 4 0.181 9 -1.31
44.798 0.08
1 2020 4.478481 30094.1 1.24447 5.91343 3 52.16 1920 57 7 0.341 9 -1.74
149.74 0.08
2 2012 3.890431 7770.18 3.57712 4.07688 4 34.3357 86 18 7 0.341 5.75 -1.56
111.70 0.09
2 2013 3.980624 9563.66 3.1311 4.20627 4 28.47 114 19 9 0.135 5.75 -1.41
134.84 0.10
2 2014 4.016996 10399.1 3.42305 4.30165 6 33.6466 152 20 3 0.081 5.75 -1.34
104.81 0.10
2 2015 4.075034 11885.9 2.94015 4.37785 7 20.9606 207 21 2 0.077 5.75 -1.5
85.343
2 2016 4.11709 13094.5 2.78151 4.47143 6 25.3692 339 22 0.11 0.67 5.75 -1.62
78.457
2 2017 4.205075 16035.2 2.80333 4.62299 1 22.8842 382 23 0.15 0.71 9 -1.68
61.244
2 2018 4.352648 22524.1 3.06948 4.74247 2 26.7709 423 24 0.17 0.77 9 -1.28
79.845 0.11
2 2019 4.407634 25564.3 3.7562 4.87294 3 19.073 481 25 4 0.181 9 -1.31
2 2020 4.506695 32114.1 3.16976 4.95079 59.089 20.4554 610 26 0.08 0.341 9 -1.74
 5 7
196.18 0.08
3 2012 4.148158 14065.6 4.05232 4.24354 5 41.0549 75 17 7 0.341 5.75 -1.56
154.88 0.09
3 2013 4.200064 15851.3 3.25642 4.2955 2 38.2363 111 18 9 0.135 5.75 -1.41
0.10
3 2014 4.247515 17681.3 3.41642 4.34168 163.48 37.0041 142 19 3 0.081 5.75 -1.34
124.52 0.10
3 2015 4.296974 19814.1 3.12089 4.39382 9 27.909 164 20 2 0.077 5.75 -1.5
116.29
3 2016 4.357144 22758.5 2.72609 4.45601 7 30.1893 315 21 0.11 0.67 5.75 -1.62
88.814
3 2017 4.443772 27782.5 2.3927 4.53938 4 18.9137 381 22 0.15 0.71 9 -1.68
63.993
3 2018 4.556143 35986.8 2.32094 4.6573 7 19.5657 421 23 0.17 0.77 9 -1.28
49.044 0.11
3 2019 4.650516 44721.5 2.00068 4.74988 9 13.6175 436 24 4 0.181 9 -1.31
46.728 0.08
3 2020 4.728304 53493.9 2.46965 4.83417 4 16.3406 469 25 7 0.341 9 -1.74
99.798 0.08
4 2012 3.830682 6771.46 3.6077 3.56475 3 37.261 61 16 7 0.341 5.75 -1.56
110.27 0.09
4 2013 3.929222 8496.15 3.0039 3.81541 6 28.4855 86 17 9 0.135 5.75 -1.41
80.709 0.10
4 2014 3.958873 9096.48 2.54474 3.86631 2 30.1897 109 18 3 0.081 5.75 -1.34
76.492 0.10
4 2015 4.046033 11118.2 2.14442 4.05926 3 56.4241 136 19 2 0.077 5.75 -1.5
75.099
4 2016 4.134654 13635 2.14359 4.02887 8 22.7631 253 20 0.11 0.67 5.75 -1.62
74.888
4 2017 4.315987 20700.8 1.9489 4.24857 9 16.6143 284 21 0.15 0.71 9 -1.68
38.061
4 2018 4.411528 25794.5 2.29758 4.4755 5 17.4129 353 22 0.17 0.77 9 -1.28
44.639 0.11
4 2019 4.507133 32146.5 2.35956 4.62108 7 13.912 579 23 4 0.181 9 -1.31
29.855 0.08
4 2020 4.677859 47627.6 2.26975 4.72006 3 13.3458 675 24 7 0.341 9 -1.74
162.08 0.08
5 2012 3.760285 5758.18 3.72042 3.9159 4 48.4679 60 13 7 0.341 5.75 -1.56
112.23 0.09
5 2013 3.877985 7550.66 3.43703 4.0069 1 36.754 79 14 9 0.135 5.75 -1.41
96.293 0.10
5 2014 3.923509 8385.11 2.98986 4.05217 6 35.8514 100 15 3 0.081 5.75 -1.34
81.139 0.10
5 2015 3.994359 9870.94 2.80855 4.13569 1 24.7868 119 16 2 0.077 5.75 -1.5
5 2016 4.044483 11078.5 2.68018 4.22603 71.473 27.9628 223 17 0.11 0.67 5.75 -1.62
 5
82.421
5 2017 4.146693 14018.2 2.40652 4.40355 2 27.8521 292 18 0.15 0.71 9 -1.68
75.607
5 2018 4.311884 20506.1 2.15832 4.50492 4 19.7446 355 19 0.17 0.77 9 -1.28
47.695 0.11
5 2019 4.371904 23545.3 2.38635 4.59433 9 18.1823 399 20 4 0.181 9 -1.31
55.654 0.08
5 2020 4.478481 30094.1 2.73987 4.75504 9 21.1456 419 21 7 0.341 9 -1.74
138.20 0.08
6 2012 3.829787 6757.51 4.09855 3.94383 4 42.3626 69 14 7 0.341 5.75 -1.56
106.98 0.09
6 2013 3.906522 8063.47 3.66382 3.99939 4 25.573 75 15 9 0.135 5.75 -1.41
0.10
6 2014 3.973241 9402.46 2.90513 4.07468 80.887 35.9941 99 16 3 0.081 5.75 -1.34
65.415 0.10
6 2015 4.072042 11804.4 2.79276 4.15718 3 23.0713 128 17 2 0.077 5.75 -1.5
62.235
6 2016 4.115199 13037.6 2.51239 4.23729 1 22.3868 204 18 0.11 0.67 5.75 -1.62
52.040
6 2017 4.217619 16505.2 2.8658 4.3405 4 19.3062 233 19 0.15 0.71 9 -1.68
53.088
6 2018 4.363218 23079 3.28322 4.44764 6 19.6145 294 20 0.17 0.77 9 -1.28
0.11
6 2019 4.463592 29079.9 2.17268 4.55311 39.026 13.1697 351 21 4 0.181 9 -1.31
28.191 0.08
6 2020 4.541225 34771.7 2.44879 4.63345 6 15.3025 390 22 7 0.341 9 -1.74
149.41 0.08
7 2012 3.766274 5838.13 2.08518 3.92154 3 51.0555 58 12 7 0.341 5.75 -1.56
102.22 0.09
7 2013 3.823162 6655.21 1.9982 4.01677 4 33.8809 72 13 9 0.135 5.75 -1.41
101.85 0.10
7 2014 3.898906 7923.29 3.05819 4.06178 3 24.1817 94 14 3 0.081 5.75 -1.34
68.600 0.10
7 2015 3.990077 9774.11 2.82765 4.13708 6 18.3923 115 15 2 0.077 5.75 -1.5
53.025
7 2016 4.094227 12423 1.49095 4.20924 5 23.972 203 16 0.11 0.67 5.75 -1.62
60.920
7 2017 4.215279 16416.4 2.0916 4.32117 8 19.9916 228 17 0.15 0.71 9 -1.68
42.745
7 2018 4.33484 21619.2 3.63039 4.43761 5 17.97 280 18 0.17 0.77 9 -1.28
40.024 0.11
7 2019 4.44191 27663.7 2.68414 4.47378 2 14.2105 307 19 4 0.181 9 -1.31
0.08
7 2020 4.527 33651.1 2.62318 4.5816 42.032 15.8586 416 20 7 0.341 9 -1.74
8 2012 3.446777 2797.54 2.78803 3.56475 125.69 44.1838 51 8 0.08 0.341 5.75 -1.56
 5 7
146.30 0.09
8 2013 3.649825 4465.04 2.8779 3.81541 6 76.7408 74 9 9 0.135 5.75 -1.41
150.20 0.10
8 2014 3.736404 5450.1 2.52567 3.86631 8 32.2455 105 10 3 0.081 5.75 -1.34
86.299 0.10
8 2015 3.867343 7367.89 2.33917 4.05926 8 33.0751 141 11 2 0.077 5.75 -1.5
31.344
8 2016 3.928822 8488.32 2.36473 4.02887 2 25.1389 287 12 0.11 0.67 5.75 -1.62
43.045
8 2017 4.15463 14276.8 2.70593 4.24857 9 24.424 332 13 0.15 0.71 9 -1.68
50.535
8 2018 4.411747 25807.6 1.96413 4.4755 3 31.4256 405 14 0.17 0.77 9 -1.28
47.091 0.11
8 2019 4.558328 36168.3 2.18021 4.62108 9 25.9119 430 15 4 0.181 9 -1.31
57.024 0.08
8 2020 4.658115 45510.9 1.77502 4.72006 2 14.993 481 16 7 0.341 9 -1.74
138.95 0.08
9 2012 3.239714 1736.66 3.531 3.9178 2 59.8326 36 6 7 0.341 5.75 -1.56
141.45 0.09
9 2013 3.32343 2105.86 4.12206 3.96116 8 46.7045 45 7 9 0.135 5.75 -1.41
94.344 0.10
9 2014 3.429265 2686.98 2.94645 4.0313 8 42.051 62 8 3 0.081 5.75 -1.34
101.67 0.10
9 2015 3.649081 4457.39 3.17914 4.12242 5 34.4469 88 9 2 0.077 5.75 -1.5
83.372
9 2016 3.801648 6333.56 2.80651 4.19949 6 28.9539 158 10 0.11 0.67 5.75 -1.62
61.872
9 2017 3.94324 8774.85 2.81178 4.32263 2 30.4428 210 11 0.15 0.71 9 -1.68
55.455
9 2018 4.065938 11639.6 3.08961 4.42633 1 25.9352 235 12 0.17 0.77 9 -1.28
59.780 0.11
9 2019 4.214756 16396.7 3.10587 4.52785 8 22.009 272 13 4 0.181 9 -1.31
0.08
9 2020 4.417168 26131.7 2.46524 4.62802 32.373 26.3787 289 14 7 0.341 9 -1.74
98.276 0.08
10 2012 3.325781 2117.3 2.08518 3.4452 2 52.2954 41 4 7 0.341 5.75 -1.56
77.245 0.09
10 2013 3.484362 3050.44 1.9982 3.59231 5 39.3845 65 5 9 0.135 5.75 -1.41
91.729 0.10
10 2014 3.699317 5004 3.05819 3.78899 2 37.2583 109 6 3 0.081 5.75 -1.34
83.222 0.10
10 2015 3.903415 8005.99 2.82765 3.97931 7 20.9201 152 7 2 0.077 5.75 -1.5
47.298
10 2016 3.970723 9348.1 1.49095 4.05238 7 22.9805 237 8 0.11 0.67 5.75 -1.62
10 2017 4.127562 13414.1 2.0916 4.212 74.155 24.7449 260 9 0.15 0.71 9 -1.68
 4
83.709
10 2018 4.299442 19927 3.63039 4.37652 1 29.152 277 10 0.17 0.77 9 -1.28
59.710 0.11
10 2019 4.424704 26589.1 2.68414 4.50214 4 19.2595 314 11 4 0.181 9 -1.31
44.742 0.08
10 2020 4.442963 27730.9 2.62318 4.52932 5 19.1816 328 12 7 0.341 9 -1.74
212.20 0.08
11 2012 3.065415 1162.56 4.3104 3.39147 5 50.2043 7 4 7 0.341 5.75 -1.56
141.07 0.09
11 2013 3.253551 1792.88 3.33701 3.46871 1 44.8317 8 5 9 0.135 5.75 -1.41
207.65 0.10
11 2014 3.398899 2505.53 5.12692 3.55791 2 49.285 9 6 3 0.081 5.75 -1.34
0.10
11 2015 3.481567 3030.87 3.48388 3.76785 145.31 30.1922 7 7 2 0.077 5.75 -1.5
148.42
11 2016 3.582434 3823.26 3.31094 3.90951 9 40.2487 22 8 0.11 0.67 5.75 -1.62
159.55
11 2017 3.739328 5486.92 2.92663 4.04044 2 42.0109 25 9 0.15 0.71 9 -1.68
120.37
11 2018 3.864706 7323.28 2.44622 4.15593 3 39.5838 44 10 0.17 0.77 9 -1.28
136.56 0.11
11 2019 4.010356 10241.3 3.56 4.30945 2 21.7363 52 11 4 0.181 9 -1.31
123.42 0.08
11 2020 4.065399 11625.2 4.4546 4.50219 5 30.2886 67 12 7 0.341 9 -1.74
98.607 0.08
12 2012 2.955834 903.305 2.59494 3.13514 3 44.6739 28 3 7 0.341 5.75 -1.56
78.544 0.09
12 2013 3.189661 1547.61 2.6463 3.32806 1 37.5364 33 4 9 0.135 5.75 -1.41
86.818 0.10
12 2014 3.332759 2151.59 3.11089 3.47885 9 41.5257 63 5 3 0.081 5.75 -1.34
82.659 0.10
12 2015 3.544197 3501.04 3.58124 3.65318 5 23.4069 82 6 2 0.077 5.75 -1.5
78.698
12 2016 3.731154 5384.6 3.31188 3.83385 7 23.2682 143 7 0.11 0.67 5.75 -1.62
72.283
12 2017 3.873877 7479.58 2.42024 3.99211 1 27.5806 176 8 0.15 0.71 9 -1.68
12 2018 3.997708 9947.37 2.76049 4.11465 62.499 26.8396 209 9 0.17 0.77 9 -1.28
71.712 0.11
12 2019 4.024759 10586.7 3.35347 4.16121 9 21.5821 244 10 4 0.181 9 -1.31
47.936 0.08
12 2020 4.142226 13874.8 2.64293 4.27571 1 22.2187 306 11 7 0.341 9 -1.74
148.99 0.08
13 2012 2.969288 931.725 3.05781 3.10891 3 60.9756 15 3 7 0.341 5.75 -1.56
13 2013 3.202251 1593.13 2.12942 3.34189 110.15 46.441 22 4 0.09 0.135 5.75 -1.41
 5 9
74.351 0.10
13 2014 3.303585 2011.8 1.79669 3.44924 1 48.7924 48 5 3 0.081 5.75 -1.34
100.25 0.10
13 2015 3.48684 3067.9 2.96894 3.62034 5 40.5234 71 6 2 0.077 5.75 -1.5
109.01
13 2016 3.723991 5296.52 4.67592 3.85711 3 29.3859 177 7 0.11 0.67 5.75 -1.62
102.34
13 2017 3.880379 7592.4 3.73181 4.02073 8 31.6088 198 8 0.15 0.71 9 -1.68
60.456
13 2018 4.035897 10861.7 2.6701 4.14823 6 24.6436 217 9 0.17 0.77 9 -1.28
65.400 0.11
13 2019 4.175056 14964.3 2.75525 4.28268 2 20.4331 256 10 4 0.181 9 -1.31
59.273 0.08
13 2020 4.220335 16608.7 2.72993 4.32951 8 16.8312 291 11 7 0.341 9 -1.74
108.71 0.08
14 2012 2.891485 778.905 2.85064 3.09269 8 59.9588 25 2 7 0.341 5.75 -1.56
90.710 0.09
14 2013 3.169067 1475.93 2.41186 3.29028 1 38.6542 47 3 9 0.135 5.75 -1.41
84.409 0.10
14 2014 3.401093 2518.22 2.2377 3.50471 6 34.1681 70 4 3 0.081 5.75 -1.34
95.860 0.10
14 2015 3.559165 3623.81 3.22544 3.66107 2 24.6094 89 5 2 0.077 5.75 -1.5
73.525
14 2016 3.684179 4832.58 2.73029 3.79146 3 23.3396 152 6 0.11 0.67 5.75 -1.62
78.566
14 2017 3.83457 6832.36 2.34087 3.93914 1 26.8108 162 7 0.15 0.71 9 -1.68
81.843
14 2018 3.976171 9466.09 3.01642 4.09079 3 30.8357 200 8 0.17 0.77 9 -1.28
107.12 0.11
14 2019 4.064397 11598.4 3.6571 4.17916 9 28.1332 232 9 4 0.181 9 -1.31
63.560 0.08
14 2020 4.206796 16098.9 3.83887 4.30543 9 24.7988 299 10 7 0.341 9 -1.74
0.08
15 2012 2.325105 211.4 3.44271 3.37917 211.4 75.1069 5 1 7 0.341 5.75 -1.56
561.26 0.09
15 2013 2.74917 561.268 4.05792 3.51168 8 68.4302 11 2 9 0.135 5.75 -1.41
792.41 0.10
15 2014 2.89895 792.411 4.09888 3.59381 1 54.4274 21 3 3 0.081 5.75 -1.34
0.10
15 2015 3.045165 1109.6 3.9098 3.68792 1109.6 44.1152 32 4 2 0.077 5.75 -1.5
1562.5
15 2016 3.193831 1562.54 3.94579 3.86769 4 49.1097 53 5 0.11 0.67 5.75 -1.62
15 2017 3.356351 2271.7 3.1396 3.98539 2271.7 40.6487 59 6 0.15 0.71 9 -1.68
15 2018 3.472812 2970.38 2.95906 4.09653 2970.3 34.8932 68 7 0.17 0.77 9 -1.28
 8
3946.5 0.11
15 2019 3.596218 3946.56 3.27302 4.16699 6 33.6049 81 8 4 0.181 9 -1.31
4635.6 0.08
15 2020 3.666114 4635.69 3.55042 4.26707 9 31.9811 96 9 7 0.341 9 -1.74