Micro Finance Industry In Ethiopia: Credit Risk Management Comparative Analysis of Omo Micro finance Institution and the Industry

Micro financing has been given due attention over the last couple of decades as a major development tool in alleviating the pain of poverty. It injects working capital for those who are financially handicapped but able to run varies economic activities. It targets the vast share of population that is disregarded by regular banks as they require unaffordable collateral by the poor. Ethiopia, one of the developing countries of the world, is carrying out different development activities. Establishment of Micro finance institutions is one of the development endeavors that got emphasis both in rural and urban areas. Currently there are micro finance institutions owned by government and Non- Government Organization (NGOs). Omo micro finance institution is one of the government owned Micro finance institutions operating in the country. Therefore, this research focuses on the trend of Non – Performing Loans of Omo micro finance institution relative to the industry as the institution lags behind the industry average with regard to the same over the last five years

Mr.Tamrat Ludego Fitamo(MBA): is a lecturer and coordinator of Accounting Program in Hawassa University, School of Management and Accounting. He worked as auditor and audit team leader at Office of the Auditor General. He earned his Master's degree from Maastricht School of Management, Maastricht, the Netherlands. Now he is a research scholar.