Factors that Affect Loan Repayment Performance of Ethiopian Commercial Banks: Evidence From Addis International Bank S.C in Addis Ababa
| dc.contributor.advisor | Mehari Mekonnen (Phd) | |
| dc.contributor.author | Wube Tsige Alemu | |
| dc.date.accessioned | 2025-04-08T07:59:54Z | |
| dc.date.available | 2025-04-08T07:59:54Z | |
| dc.date.issued | 2024-06-22 | |
| dc.description.abstract | The main purpose of the study was to investigate factors that affect loan repayment performance of Addis international Bank S.C in Addis Ababa. To this end factors that affect loan repayment performance of banks on both the borrower and bank side is identified. To arrive at an appropriate conclusion about the issue under study the researcher used descriptive and explanatory research design with quantitative and qualitative research approach. The study also used both primary and secondary data. Primary and secondary data was collected using questionnaires and through verifying documents respectively. From the total population of the study targeted, sample size was determined considering the bank employees and borrowers as strata (using stratified sampling technique). To determine the sample size, the researcher used the Yamane’s formula The total population of the study was 597 which include 500 borrowers and 97 employees and the total sample size is 240. In this study the data obtained from borrowers and the bank was analyzed using Binary regression model was used to measure the variables those are factors that affect loan repayment performance of Addis bank in Addis Ababa. Data were analyzed using statistical Software for Data science (STATA). A total of Twelve explanatory variables representing three dimensional namely institutional factors, loan factors and borrower factors considered to analyze loan repayment performance. Based on the findings of this study, the researcher concludes that Educational level, repayment period, Loan supervision, interest rate, loan size, saving culture, loan processing time and collateral have found to be significant effect on loan repayment performance of housing finance. On the other hand, loan follow-up, marital status, income from other sources and loan diversion have found to be insignificant effect on loan repayment performance. Finally, possible recommendations were suggested that, the bank might consider the significant variables such as Educational level, repayment period, Loan supervision, interest rate, loan size, saving culture, loan processing time and collateral to minimize loan default rate. | |
| dc.identifier.uri | https://etd.aau.edu.et/handle/123456789/5323 | |
| dc.language.iso | en | |
| dc.publisher | A.A.U | |
| dc.title | Factors that Affect Loan Repayment Performance of Ethiopian Commercial Banks: Evidence From Addis International Bank S.C in Addis Ababa | |
| dc.type | Thesis |