Impact of Loan Assessment on Non-Performing Loans: A Case of Construction and Business Bank (CBB)
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Date
2008-02
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Publisher
A.A.U
Abstract
The study endeavors to examine the impact or loan assessment on non performing loans at
construction and Business Bank (CBB) from the view point of both Accounting- and
economic aspects the Accumulation of non-performing loans is attributable to lots or
causes. Among these, the major one is inadequate loans is assessment. This, in turn aggravates
non-performing loans, delays the economic recovery, creates liquidity, problem, hampers the
development or Bank's operational activists as well reduces profit.
Survey method was used to collect date from 18 employees of CBB" who are working- in the
area of loan activity witch the help or purpose (non-probability) sampling- technique. The
collected data was analyzed using descriptive statistics. Moreover semi-structured and
Structured interview was also used to gather information that can be as cases studies from
CBB's loan oi1icers. In addition , questionnaires "'e re prepared 10 CBB city branch managers
and credit department employees
The result or the study revealed that there are many factors contributing for the accumulation
of non-performing loans in CBB, Among which, inadequate reedit assessment is the major
factor followed by real estate speculators and long- term maturity of the loan.
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Keywords
Business Bank, Performing Loans