Assessment Of Performance Of Saving Mobilization Between Branches Of Mfi, Ethiopia

Abstract

The captioned title of research attempts to evaluate the efficiency of saving mobilization performance of Micro Finance Institutions like Amhara Credit &amp; Saving Institutions (ACSI) in Ethiopia in general and between the two branches (Arrerty and Deneba<strong>)</strong> of North Shoa Region in particular. Data are collected through primary data such as questionnaire and secondary data from the annual reports of ACSI. While convenient sampling is used to select the branches for the study, simple random sampling has been adopted to select the saving clients from the population of both the branches. In order to derive the saving mobilization performance, five parameters have been identified for the purpose of comparison between two branches. The purpose of this study is to verify whether or not any of these parameters are better between Arrerty and Deneba branch in terms of creating demand and awareness, optimizing supportive factors to access saving, overcoming of constraint factors of access voluntary saving, to evaluate saving performance and loan to saving ratio. The inferential analysis is deployed by resorting to paired sample t test in order to compare these parameters between the two branches. The findings of the study reveal that the Arrerty branch is better in saving mobilization performance than Deneba branch in terms of creating demand and awareness of saving mobilization, in minimizing constraint factors to access saving, improvement of total saving performance and loan to saving ratio. Arrerty branch is not better than Deneba branch in optimizing supportive factors to access saving. Thus the study concludes that the overall saving mobilization performance in Arrerty branch is better than Deneba branch of ACSI, North Shoa Zone, Ethiopia.