Business Leadership

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Browsing Business Leadership by Subject "Banking industry"

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    Assessment of Non-performing loan in Dashen Bank S.C
    (Addis Ababa University, 2020-02) Gezachew, Ermias; Alemu, Dakito (PhD)
    The main goal of commercial banks is to operate profitably in order to maintain its stability and improve growth and sustainability. The problem of non-performing loans is seen as a burden on any country’s economy or financial institution and putting downward pressure on its growth. This is because the role of banks as financial intermediaries does not function properly due to the problem of non-performing loans (NPLs). In view of that, this study has been tried to examine the factors affecting non-performing loans in Dashen bank S.C. The research methodology adopted descriptive research design based on both open ended and close ended structured questionnaires to gain in-depth understanding. A sample size of 110 respondents was used and Simple random sampling method was adopted for the study. The findings indicated that poor risk assessment and poor monitoring/follow-up as the major reasons for the occurrence of loan default/ non-performing loan followed credit culture /orientation and interest rate. The study suggests that much attention should be given to proper credit assessment and risk management techniques, introducing and implementation of an aggressive debt collection policy, and strong loan follow-ups. Besides, the bank should exert additional effort to better manage its NPL position
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    Challenges and Opportunities of Agent Banking in Ethiopia: A Case Study of Some Selected Branches of Awash Bank
    (Addis Ababa University, 2023-07) Tesfaye Asalfew; Wubshet Bekalu (PhD)
    This research project was aimed to describe the challenge and opportunities of agent banking adoption in Ethiopian banking industry. In order to achieve the objective of this study and answer the research questions the researcher adopted descriptive research design and mixed research approach. A total of sixty-five (65) questionnaires were distributed of which 53 questionnaires were distributed to Awash Bank East Addis Ababa Region Staffs, Awash Bank Digital Banking Directorate at Head Office and 12 questionnaires were administered to Awash Bank Agents found in East Addis Ababa Region or District. Purposely sampled method was applied to select the respondents and the researcher received sixty-three (63) responses from (65) questionnaires. The study revealed that, Awash bank has written policy and procedure to perform Agent Banking service. Regarding to the challenges of banks to adopt agent banking lack of technical and managerial skills in the implementation and development of agent banking technology is the main challenge of adopting agent banking lack of availability of well-trained manpower to build agent network, lack of skill of IT personnel, lack of technical and managerial skill of staffs), and technological (lack of confidence with the security aspect, customer’s fear of risk of new technology innovation, and lack of availability of physical security) are challenges of adopting agent banking. The study also revealed that, the major opportunities of adopting agent banking. The opportunities of adopting agent banking are simplicity to perform banking tasks, easiness to understand and use, friendliness with the existing service offering, improving customer service being a solution for banks closing their doors early, motivates fast small cash movers to put their extra money into the banking system, creating wider market coverage for the bank, increases the productivity of banks, enhance customer service, and accessibility of service without limit of time and place, increase the revenue from sales as well as transaction commission. The study recommended banks to consider technology-based competition, regulatory body to issue suitable legal frameworks to ease the adoption of mobile and agent banking system while the government should support banking sector by investing on ICT infrastructure development and financial education program, offering training and any other capacity building training. Awash Bank also check and revise the transaction commission for agents