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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Publisher

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

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