Debt Collection Optimization: Commercial Bank of Ethiopia’s case
No Thumbnail Available
Date
2015-02
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
This thesis develops and analyzes a finite horizon Markov decision process model for commercial
bank of Ethiopia’s debt collection optimization problem. Two sectors namely domestic trade
and services (DTS) and foreign trade (FT) have been studied primarily because of loan turnover
rates and economic policy focus. A 2 years long data are used to determine cost of holding an
outstanding loan in a certain state or delinquency status on a log scale where each state/status is
scaled by the percentage of provision allocated to the states. Conclusions are made in terms of
which loan segments banks need treat with more caution. Simple but important suggestions on
ways of improving the operations of banks are made in the end.
Description
Keywords
Computational