Assessment Of Credit Management In The Case Of Development Bank Of Ethiopia

The study discusses the perception of Development Bank of Ethiopia staffs’ opinionrnregarding credit management assessment based on existing credit assessment method, skillrncapacity of the employee working in the credit units, collateralized loans and monitoring andrnevaluation effect on NPL ratio of the bank. To the best of the researcher’s knowledge, therernis no document that shows the perception of the DBE employees having direct work relationrnonly in the credit units of the bank. This is a major motivation to carry out this study. Thernstudy was conducted based on primary information collected from 138 staffs of DevelopmentrnBank of Ethiopia having a direct relation with credit management through structuredrnquestionnaires and the response rate is 89%. The secondary data was taken from the annualrnreport of the bank for the last 16 years (2003-2018). The collected data were presented intorntables, graphs, and charts for easy analysis and discussion of findings. The study findingsrnindicated that the majority staffs of Development Bank of Ethiopia perceive that adequaterncredit assessment method, skill capacity, collateral coverage, monitoring, and evaluationrnwere reduced NPL ratio of the bank. In generally, perception of banks’ staffs’ was fall in thernagreed category. Based on the perception of the employees of the Development Bank ofrnEthiopia, it is fair to update the knowledge of loan officers working in credit line in order tornminimize the raising of NPL ratio.

Get Full Work

Report copyright infringement or plagiarism