Assessment of Credit Risk Management Systems and Practices of Ethiopian Commercial Banks. (Case of Some Private Banks)

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Addis Ababa University


The main objective of this study was to assess credit risk management system and practices in Ethiopian banking industry of some private commercial banks. Selection of banks for the study was done based on two criteria; one it involved only private commercial banks in Ethiopia and two those banks that operated during the period 2013-2018. Four commercial banks out of eighteen banks were selected. These banks were Berhan International Bank S.C, Bunna International Bank S.C, Debub Global Bank S.C and Enat Bank S.C. From these four commercial banks with so many branches nationwide, it could be difficult to be managed by the research due to time and resource constraints. In this study, purposive sampling technique was used in order to select participants of the study. For the purpose of this study, both primary and secondary data was used. Primary data was collected through questionnaires distributed to respondents that involved professional working in the banks such as Department Managers and Senior Officers working on loan processing. The data were analyzed using descriptive statistics by using SPSS software version 21. Finding of this study would assist in forwarding recommendations to improve the problems the present credit risk management situation prevailing in the banking sector in Ethiopia by assessing selected private commercial banks credit risk management activity or Banks need to establish effective management information system, communication and reporting risk related data, reviewing and quantifying credit risk both at individual and portfolio level were some issues that require great attention of banks. In addition to this, based on the implication of the research findings, the research also recommended areas for future research.


A thesis submitted to department of accounting and finance, college of business and economics, Addis Ababa university in partial fulfillment Of the requirement for the degree of Master of Science in Accounting and Finance


Assessing, Commercial banks, Credit risk, Credit risk Management