Browsing by Author "Yosef, Tesfaye"

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    Assessment Of Loan Collection Challenges In The Case Of Development Bank Of Ethiopia
    (A.A.U, 2020-11) Yosef, Tesfaye; Temesgen, Worku (PhD)
    Development bank of Ethiopia is state owned and specialized financial institution with the mandate of providing long, medium and short term loans to feasible and viable projects of commercial agriculture, agro processing and manufacturing sectors following government priority area. To address the main objective of the study, Development Bank of Ethiopia, Head office is selected for the study purpose. The study was aimed to assess the challenges of loan collection & suggest sound strategy for decision makers on how to increase the loan collection of the bank. The study used primary and secondary data obtained from working units of the credit process. Primary data collection instruments were Survey through structured questioner, Key informant Interview and focus group discussion. Secondary data on financed projects and the banks credit operation were obtained from Human Resource Management Directorate, Project Evaluation and Loan portfolio Management Directorate and Strategic planning, change and communication Directorate. The study was basically conducted from three different perspectives, borrowers related factors, bank related factors, and factors related to external environment were analyzed through descriptive statistics such as mean, percentages, tables and figures to show the relationship between selected factors such as strategic objective and mandate clarity; organizational structure and leadership effectiveness, due diligence assessment strength, existence of strong feasibility analysis, reliable loan approval process, clear and well-structured loan/project follow up process, and existence of effective and efficient loan collection strategy or scheme. Based on the descriptive results/analysis, the researcher has recommended to the bank to undertake proper screening, disbursing loan at the right time, conduct proper follow-up, provide sufficient amount of loan as per the feasibility study of the project, solve other difficulties as identified in this study and work on all other factors affecting loan repayment performances.