A Comparative Analysis of Credit Service Provision in Selected Private Commercial Banks versus Micro Finance Institutions in Addis Ababa: Eligibility Criteria, Prioritized Sectors and Efficiency of Service Provision
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Date
2018-10
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Addis Ababa University
Abstract
The main objective of the study was to make comparisons between private commercial Banks and
micro finance institutions in respect of four variables and the challenges therein. A descriptive
statistical analysis technique was employed in addition to the adoption of Efficiency Matrix Model
applied by Dima et.al (2016). Questionnaires were administered on a sample frame selected with
purposive sampling technique rationalizing on the relevance of the samples and not their
quantitative representativeness to the general population for the purpose of this specific research.
Against any prior perceptions, both institutional formations exhibited more similarities when it
comes to operational efficiencies and risk appetite. The study found out those stringent regulatory
restrictions, capital and infrastructural challenges categorically limited the financial sector’s
growth ambitions amid the now familiar financial inclusion discourse. Size of the loans is to be the
factor determining the depth of analysis and scrutiny. Given the visible disparity in size of the
loans at Banks and MFIs, flexibility in evaluation criteria demonstrated consistent difference.
Description
A thesis submitted to the department of Public Administration & Development
Management of Addis Ababa University In Partial fulfillment of the
requirement for the Degree of Masters in Public Management and Policy
(MPMP)
Keywords
Credit Service, Micro Finance Institutions