1.

Introduction
Banking is the process of engaging in the business of keeping money for saving and checking
accounts, insurance of loans and credit, and the like. This is an industry that is strictly regulated
by the government. Banks are among the most important financial institutions in the economy.
They are the principal source of credit for many households, for most local units of government
and for businessman.
A bank performs financial services, which are seen to be vital for a country’s economy these
services include the extension of credit, the taking of deposits, the processing of payments, and
the provisions of guarantees, such as letters of credits or bank guaranties. Also banks play a
critical role by mobilization of deposits. Banks are the most important financial intermediaries
that channel funds from savor who have surplus funds to deficits who have shortage funds.This
improves the economic welfare of everyone in the society because it allows funds to move from
those without productive investment opportunities to those who have such opportunities those by
contributing too increased efficiency in the economy.
2. Background of the study
To mobilize sufficient deposit from depositors, it needs to point out the challenges to maximize
deposits. However, developing countries like Ethiopia, where there are a large number of
informal sectors, such as ekub (local word the way of money saving method)it will be a big
challenge for banks to mobilize deposit. As private commercial bank, Nib international Bank
(NIB) has a great responsibility on deposit mobilization, so as to contribute in economic growth
of the country. Banking is a rapid growing industry in Ethiopia currently there are 2 state owned
and 16 private commercial banks. NIB is among those private banks in Ethiopia. The bank has
been playing a great role in economic development of the country for 18 years now. Today, more
than ever before, NIB has aggressively expanded its presence in all directions of the
country.Currently it has 190 branch spanning the entire country as of May 2019G.C.

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 3. Objective of the study
3.1 General Objectives
 To identify the challenges and prospects on deposit mobilization in NIB international
bank. And to give conclusion and recommendation upon it.
3.2 specific Objectives
 To investigate what are the factors that affect the attraction of new customers to mobilize
deposit
 To investigate the factors that affect deposit mobilization process of branches and
problems of performances measurement criteria related with deposit mobilization.
 To investigate possible prospects related to deposit mobilization in NIB.
 To suggest possible solution to interested body and researchers related to this topic.
4. Hypothesis
 Attraction of new customers will have a positive impact in deposit mobilization of Nib
international bank.
 Increasing number of branchesin Nib international bank will have a positive impact in
deposit mobilization.
5 . Significance of the study
Since Nib international bank is now working hard in order to achieve its planned deposit,
knowing challenges of deposit mobilization helps the management of the bank to avoid them on
time and helping the bank to maintain its liquidity position of the banking industry in the long
run. If challenges of deposit mobilization resolve, customers will get all services of the band as
their need. This means the bank will definitely obtain its intermediary position between
depositors and inventors. The availability of adequate internal deposit is crucial for the
development of one country. Therefore, deposit in fact benefits the community to get the right
way for development. The study will help researchers partially to have an understanding of
challenges and prospects in deposit mobilization. In addition, the research paper will add
something on the existing literature related to deposit mobilization and serve as a source of
reference for those who are interested to make research on the same topic.

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6. Review of Related Literature
Banks safeguard money and valuables and provide loans, credits and payment services, such as
checking accounts, money orders and cashier’s checks. Banks invests the deposit for ensuring
optimum utilization of valuable resources using additional resources required for meeting credit
demands. All of those purposes are the banks strategy to make bank survive in operation of the
deposit mobilization, which affect to the state economy.
Mobilizing deposits is crucial in many developing countries. Yet in many developing countries,
there are considerable amount of saving that are not intermediated through the formal sector in
particular, there exists a significant saving potential in the rural and/or semi-urban sector in many
developing countries. One of the reasons for the lack of savings mobilization is that banks simply
do not cater to significant parts of households. Indeed, in many rural areas banks are entirely
absent and even in urban and semi-urban areas banks do not reach out to a significant proportion
of the population.
7. Scope of the study
However, due to the limitation of time and money the researcher will forced to shorten to assess
deposit. Loans and advances, liquidity position and branch expansion of annual reports from
2010/11 to 2016/17 of NIB. In addition to annual report and monthly statistical branch expansion
report, using interview will enhance the finding in the research area of the bank.
8.Methodology of the Study
8.1Research Design
The study will have adopted a case of research design by using both qualitative and quantitative
to obtain the desired results of the bank deposit and to explore detailed evidence about the
problems in the course of analyzing the challenges and prospects, both primary and secondary
data collections procedures will be employed. To achieve this goal, Interviews and document
reviews will be the main tools.
8.2 Sample and Population
Currently NIB has around 190 branches in all over the country, collecting data from each branch
is impossible due to time, money and skilled man power constraints, due to this fact, interciew
with concerned higher officials and branch managers located in Addis Ababa of the bank and ten
years’ annual report and monthly statistical branch expansion reports of NIB will be used.

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8.3 Data Collection
Data will be gathered from primary and secondary sources. The primary data will be conducted
in the form of personal interviews with concerned higher officials and branch managers located
in Addis Ababa. The secondary data will be employed based on annual report and monthly
statistical branch expansion reports of Nib international bank.
8.4 Data Analysis Technique
In order to arrive in a certain conclusion, the collected data will be analyzed and interpreted by
using both qualitative and quantitative techniques. The data collected by interviews will be
analyzed qualitatively. Secondary data collected from annual and monthly statistical reports will
be analyzed quantitatively by using figures, tables, percentages and finally tried to interpret the
result.
9. Organization of the Study
9.1 Planned Activities and Indicative Timeline
It is proposed that the field research will be financed by month one 2020 and that it will take
until month three 2020 to finalize draft of the final research. And detailed indicative timeline is
as follows.
D u ti e s t o b e d o n e
M o n t h 1 M o n t h 2 M o n t h 3

W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4

I n t r o d u c ti o n   

Literatural review   

C o l l e c ti o n o f d a t a  

D a t a a n a l y s i s  

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Analysis and interpreting collected data 

Finalize with recommendation and conclusion 

9.2 Budget proposal

The total budget of the research is estimated about ETB 2,500.00. The breakdown of the budget
is given in detail as follows and amendments will be made throughout the remaining period of
the research depending on progress and assessment by adviser.

No. Description of duties Amount in birr

1. Data collection 600

2. Secretarial service 500

3. Transportation 500

4. Communication through mobile 400

5. Miscellaneous cost 500

Total 2,500 birr