Assessment of Credit Management in the Case of Development Bank of Ethiopia
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Date
2019-07
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Addis Ababa University
Abstract
The study discusses the perception of Development Bank of Ethiopia staffs’ opinion
regarding credit management assessment based on existing credit assessment method, skill
capacity of the employee working in the credit units, collateralized loans and monitoring and
evaluation effect on NPL ratio of the bank. To the best of the researcher’s knowledge, there
is no document that shows the perception of the DBE employees having direct work relation
only in the credit units of the bank. This is a major motivation to carry out this study. The
study was conducted based on primary information collected from 138 staffs of Development
Bank of Ethiopia having a direct relation with credit management through structured
questionnaires and the response rate is 89%. The secondary data was taken from the annual
report of the bank for the last 16 years (2003-2018). The collected data were presented into
tables, graphs, and charts for easy analysis and discussion of findings. The study findings
indicated that the majority staffs of Development Bank of Ethiopia perceive that adequate
credit assessment method, skill capacity, collateral coverage, monitoring, and evaluation
were reduced NPL ratio of the bank. In generally, perception of banks’ staffs’ was fall in the
agreed category. Based on the perception of the employees of the Development Bank of
Ethiopia, it is fair to update the knowledge of loan officers working in credit line in order to
minimize the raising of NPL ratio.
Description
A project submitted to Addis Ababa university department
of accounting and finance, in partial fulfilment of the
Requirements for the degree of Master of Science in
Financial service
Keywords
DBE, NPL, SPSS 25