Credit Risk Management in the Development Bank of Ethiopia. Effects on the Quality of Loan Portfolio

Kebede Adane

ISBN 10: 3346298736 / ISBN 13: 9783346298737

Published by GRIN Verlag, 2021

About this Item

Credit Risk Management in the Development Bank of Ethiopia. Effects on the Quality of Loan Portfolio | Kebede Adane | Taschenbuch | Englisch | 2021 | GRIN Verlag | EAN 9783346298737 | Verantwortliche Person für die EU: preigu GmbH & Co. KG, Lengericher Landstr. 19, 49078 Osnabrück, mail[at]preigu[dot]de | Anbieter: preigu Print on Demand.

Seller Inventory # 119526316

Bibliographic Details

• Title: Credit Risk Management in the Development Bank of Ethiopia. Effects on the Quality of Loan Portfolio
• Publisher: GRIN Verlag
• Publication Date: 2021
• Language: English
• ISBN 10: 3346298736
• ISBN 13: 9783346298737
• Binding: Taschenbuch
• Condition: Neu
• Dimensions: 210W x 148H x 7D millimeters 210 millimeters width by 148 millimeters height by 7 millimeters depth
• Weight: 141 grams
• Seller catalogs:
  • Bücher

About this title

Synopsis

Master's Thesis from the year 2020 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, course: Business Adminstration, language: English, abstract: The main objective of the thesis is to assess the effect of credit risk management on the quality of loans portfolio in the case of Development Bank of Ethiopia. A sample of 84 respondents was drawn from the employees of the Development Bank of Ethiopia by using purposive sampling technique. Both primary and secondary data were used. Data related to loan portfolio and loan position is obtained from the bank whereas, primary data are collected using structured questioners from the employees of the bank. Descriptive and inferential statistics were used to conduct the research and Multiple Regression Analysis was run using SPSS Version 21.0 to analyze the data. With regard to credit risk management practices, the result show that DBE has not satisfactory risk Management practice. Precisely, using score 1 (poor) to 5 (best), all the parameters of risk management practice assessment have a score value below 3.40, i.e. Credit Risk Granting and Portfolio Quality Control (3.40), Credit Risk System and Standard (3.20), Credit Risk and Portfolio Quality Control (3.17), Risk Identification, Measurement and Control (3.03), and Risk Environment (2.98). The Bank`s loan portfolio is also more vulnerable to various types of risks, such as to unpredictable risk, predictable, and controllable risks. The bank's NPL ratio was above 15% for the last five years. The regression result also showed that sound credit granting process and the existence of comprehensive risk management system and standards are the significant variables that affect loan portfolio quality of the Bank. Credit risk management practice of the bank has insignificant effect on loan portfolio quality. Both in terms of Non-performing loan and concentration, DBE has poor loan portfolio quality which is due to the bank's poor credit risk m