Assessment of Financing Manufacturing Projects in Case of Commercial Bank of Ethiopia
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Date
2019-06
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Addis Abeba University
Abstract
The study focused on the Assessment of manufacturing project financing in the case of
commercial bank of Ethiopia. Cross sectional descriptive survey design was employed. The case
study involved 88 respondents comprising of all the technical staff from the three sub
departments of credit process center in Commercial Bank of Ethiopia, namely credit appraisal,
credit follow up and credit risk management. a descriptive analysis was used to assess the loan
appraisal, financial viability, technical feasibility, credit rating, credit follow-up, risk transfer,
risk diversification, risk retention and loan performance. The findings indicated that loan
appraisal, credit rating, financial viability, technical feasibility; credit risk management are the
main influential factors in manufacturing project financing. Finally, the researcher
recommended to the Bank to give a due emphasis on project loan appraisals with different
approaches from traditional financing and take appropriate credit follow-up procedures after
disbursement of the project loan since failing to do so will be adverse on performance. Similarly,
the bank should minimize risks on this newly entered financing through employing various credit
risk management techniques, including transfer, diversification and technical retention.
Description
A thesis submitted to the Department Of Accounting and Finance of Addis Ababa University in
partial fulfillment of the requirements for the Degree of Masters in accounting and finance
Keywords
Commercial Bank of Ethiopia, Financing Manufacturing Projects