Factors Affecting Lending Decision of Commercial Banks in Ethiopia: A Case Study of Selected Private Commercial Banks
| dc.contributor.advisor | Abebe, Yitayew (PhD) | |
| dc.contributor.author | Biniam, Tialhun | |
| dc.date.accessioned | 2018-11-01T08:10:19Z | |
| dc.date.accessioned | 2023-11-04T07:58:22Z | |
| dc.date.available | 2018-11-01T08:10:19Z | |
| dc.date.available | 2023-11-04T07:58:22Z | |
| dc.date.issued | 2018-06 | |
| dc.description | A thesis submitted to the school of graduate studies of Addis Ababa University in partial fulfillment of the requirements for the Degree of Master of Science in accounting and finance | en_US |
| dc.description.abstract | This research study was conducted with the aim of identifying and examining the lending models or customer specific factors and their most considered factors by some selected private commercial banks in Ethiopia while evaluating and approving their customer loan requests . It also tries to find whether the banks differ in their use of these models. The study covered four private commercial banks namely, Dashen Bank (DB), Awash International Bank (AIB), Wegagen Bank (WB) and Nib international bank (NIB). These banks were selected based on their share of contribution for annual disbursement in the economy in the year covering from (2011/2012 to 2015/2016). During the period they were the top four private banks which contribute 5% and above from the average annual new disbursement. In order to address the objectives of the research a questionnaire was designed and filled by randomly selected credit performer at the head office and district level. Descriptive statistics and analysis of Variance or ANOVA test have been used to draw conclusions. The research found that the selected banks use various types of lending models in evaluating credit applications. The average percentages were used to find out the elements the banks concentrate most in each method, and it was found that the banks consider most the collateral, capital, capacity, liquidity, profitably, debt ratio and credit track records. Generally they most think about how the money can be returned back and how much security, collateral or protections are available. On the other hand, they do have least consideration on management quality of the applicant, operational ratios, condition of the economy and the industry, purpose, prospect or plan. It was also found through hypothesis testing that the application of lending Model in the banks under consideration is different. Thus the banks in the study should have reasonable risk appetite and improve the level of consideration for business operational analysis. Besides, they should also make sure that the benefit of overriding the lending principles out weight the potential default risk. | en_US |
| dc.identifier.uri | http://etd.aau.edu.et/handle/123456789/13570 | |
| dc.language.iso | en_US | en_US |
| dc.publisher | Addis Ababa University | en_US |
| dc.subject | CAMPARI | en_US |
| dc.subject | FAPE | en_US |
| dc.subject | IRG | en_US |
| dc.subject | LAPP | en_US |
| dc.subject | Lending Models | en_US |
| dc.title | Factors Affecting Lending Decision of Commercial Banks in Ethiopia: A Case Study of Selected Private Commercial Banks | en_US |
| dc.type | Thesis | en_US |