The Opportunities And Challenges Of Lease Financing In Development Bank Of Ethiopia

The main objective of this paper is to assess the overall opportunities and challengesrnof lease financing service in development Bank of Ethiopia. Leasing is financing inrnkind and DBE has been providing lease financing service in the form of supplyingrncapital goods to small and medium enterprises since 2016. The research approachrnadopted in this study was a mix of quantitative and qualitative approaches. Bothrnprimary and secondary data were used. In identifying the respondents from thernstudy population, purposive sampling was adopted. All District offices of the Bankrnand selected work units from Head office were included in the sample. The studyrnidentified opportunities of lease financing and got high level of agreement byrnrespondents. The level of agreement on opportunities questions responded as leasernbusiness sector, strong support from the government, leasing business opportunity forrnemployment creation, new investment opportunity and contributing for SMEsrndevelopment. The study also found out that the major internal and external challengesrnof the lease financing in DBE are high lease NPLs, tight lease requirements, lack ofrnhard currency, inadequate MIS, policy and procedure amendments repeatedly, andrnlack of capital. Based on the survey and interview results the researcher forwarded itsrnconclusion and recommendation.

Get Full Work

Report copyright infringement or plagiarism