Project Loan Portfolio Management: An Integrated Model

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Date

2020-09

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Publisher

Addis Ababa University

Abstract

This research project has been conducted as a means of exploring new ways of solving problems while managing project loans financed by banks in Ethiopia. The research tries to develop a model that integrates the conventional credit appraisal techniques of banks with the tenets of contemporary project portfolio management science. The researcher’s experience in the industry and informal discussions with professionals in the area were used as preliminary inputs to observe the problems. Questionnaires were distributed to collect quantitative data and a semistructured one-on-one interview conducted to collect qualitative data from a purposively selected bank to help see where the gap exists. Descriptive statistics results were extracted from the quantitative data using SPSS version 20 and qualitative analysis was made on data obtained from the interviews. From the analysis of the collected data the researcher has arrived at a conclusion that there is a need to integrate the conventional project loan appraisal techniques of banks with project portfolio management science. As a recommendation banks should implement the working procedures outlined in the model that accommodate both approaches in the areas of establishing strategy, evaluating, prioritizing, selecting, and managing project loan portfolios.

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Keywords

project loan portfolio management,, establishing, evaluating,, prioritizing, selecting,, managing portfolio

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