Assessment Of Financing Manufacturing Projects In Case Of Commercial Bank Of Ethiopia

The study focused on the Assessment of manufacturing project financing in the case ofrncommercial bank of Ethiopia. Cross sectional descriptive survey design was employed. The casernstudy involved 88 respondents comprising of all the technical staff from the three subrndepartments of credit process center in Commercial Bank of Ethiopia, namely credit appraisal,rncredit follow up and credit risk management. a descriptive analysis was used to assess the loanrnappraisal, financial viability, technical feasibility, credit rating, credit follow-up, risk transfer,rnrisk diversification, risk retention and loan performance. The findings indicated that loanrnappraisal, credit rating, financial viability, technical feasibility; credit risk management are thernmain influential factors in manufacturing project financing. Finally, the researcherrnrecommended to the Bank to give a due emphasis on project loan appraisals with differentrnapproaches from traditional financing and take appropriate credit follow-up procedures afterrndisbursement of the project loan since failing to do so will be adverse on performance. Similarly,rnthe bank should minimize risks on this newly entered financing through employing various creditrnrisk management techniques, including transfer, diversification and technical retention.

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