Assessment on Credit Management Practices of Awash Bank S.C.
| dc.contributor.advisor | Abebaw Kassie (PhD) | |
| dc.contributor.author | Lensa Sheleme | |
| dc.date.accessioned | 2024-04-23T06:50:08Z | |
| dc.date.available | 2024-04-23T06:50:08Z | |
| dc.date.issued | 2023-06-02 | |
| dc.description.abstract | The banks act as an intermediary to mobilize the excess fund of surplus sectors to provide necessary finance, to those sectors, which are needed to promote for the sound development of the economy. The main purpose of this study is to assess credit management practices of Awash Bank S.C. The study was used descriptive research design. Both qualitative and quantitative research approach were employed to collect and analyze data. The study selected a sample size of 110 respondents using a stratified sampling method. Relevant data were collected from both primary and secondary sources. Questionnaires and interviews were used to gather primary data while secondary data was gathered from the Bank's annual reports from FY 2013 to 2022, as well as other relevant publications. The collected data was analyzed using descriptive statistics with the help of SPSS version 25. The study found that the bank is operating using a sound credit-granting process and that the duration of the granting process needs to be changed; credit administration teams are appropriately approving credit requests; the bank does not periodically visit all borrowers after credit granting; the bank’s total amount of loans and advances granted each year has continuously increased; the bank has developed its own internal credit customer risk rating system, but it does not apply to personal loan and project loan borrowers, loan requests under 5 million and the NPL ratio from FY 2013 to FY 2022 was less than 5% NBE threshold. The study recommended that the bank should automate credit granting process, develop a customer credit risk grading system for personal loans, projects loans, and also minimize NPL ratio to nearly zero levels. | |
| dc.identifier.uri | https://etd.aau.edu.et/handle/123456789/2766 | |
| dc.language.iso | en | |
| dc.publisher | A.A.U. | |
| dc.title | Assessment on Credit Management Practices of Awash Bank S.C. | |
| dc.type | Thesis |