Browsing by Author "Sintayehu, Abebe"

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    The opportunities and challenges of lease financing in Development Bank of Ethiopia
    (Addis Ababa University, 2019-06) Sintayehu, Abebe; Habtamu, Berhanu (PhD)
    The main objective of this paper is to assess the overall opportunities and challenges of lease financing service in development Bank of Ethiopia. Leasing is financing in kind and DBE has been providing lease financing service in the form of supplying capital goods to small and medium enterprises since 2016. The research approach adopted in this study was a mix of quantitative and qualitative approaches. Both primary and secondary data were used. In identifying the respondents from the study population, purposive sampling was adopted. All District offices of the Bank and selected work units from Head office were included in the sample. The study identified opportunities of lease financing and got high level of agreement by respondents. The level of agreement on opportunities questions responded as lease business sector, strong support from the government, leasing business opportunity for employment creation, new investment opportunity and contributing for SMEs development. The study also found out that the major internal and external challenges of the lease financing in DBE are high lease NPLs, tight lease requirements, lack of hard currency, inadequate MIS, policy and procedure amendments repeatedly, and lack of capital. Based on the survey and interview results the researcher forwarded its conclusion and recommendation.