Challenges and Prospects of Deposit Mobilization: (In Case of Commercial Bank of Ethiopia, Gubre Branch)

Abstract

The general objective of this study was to assess the challenges and prospects of deposit mobilization on commercial Bank of Ethiopia by examining Gubre Branch. In this study the researcher was used descriptive analysis design and census method was used. The study focused on the identifying the challenges influencing related financial, administrative, Technology and external factors challenges in deposit mobilization and possible prospects of CBE in deposit mobilization. The study was used primary data. Primary data was being collected through questionnaires from the employees and interview with the branch manager. It was synthesized and analysed using both qualitative and quantitative analytical approach to draw valid conclusions. The study shows that the administrative challenges are governance low and lack of awareness about deposit mobilization. Technology challenges are bank access by giving services and products, Electric Power of Agency infrastructures, and interruption of the network, Deposit interest rate and loan interest rate are the finance challenges affect deposits, The external factors challenges are compete with private banks, unstable macroeconomic, existence of political unrest and Community attitude towards the bank. Using new technologies, qualified employees, and giving interested service, and improving local and international money transfers is a source of prospects deposit mobilization. As a result, the study recommended that, the manager should be designing situations policy to management deposits mobilization, government should solve the problem related to electric power of agency infrastructure and interruption of the network, stable macroeconomics and regulate existence of political unrest. The bank should increase deposit interest rate, use new technologies, giving interested service, and improving local and international money transfers to improving the deposit mobilization