Assessment of Credit Risk Managent System in Ethiopian Commercial Banks
Year: 2025
Type: article
Abstract: The main objective of this study was to assess credit risk management system in Ethiopian banking industry in Yirga cheffe city. The motive to limit this study in Yirga Cheffe City is the area known by yirga cheffe organic coffee due to this reason there is high demands for loan to banks from different investors. Those selected banks are Commercial Bank of Ethiopia Yirga Cheffe branch, Nib International Bank S.C, Bank of Abyssinia S.C, Wegagen Bank S.C, United Bank S.C, and Debub Global Bank S.C. The researcher employed purposive sampling technique. This is because it helps to ponder on people who are directly involving in credit processing and administering. Besides, they can give appropriate and relevant information regarding to the study. Hence, from total population of 150 and among those employees 50 participants (12 participants from Commercial Bank of Ethiopia Yirga Cheffe branch, 10 participants from Wogagen Bank S.C, 8 participants from Nib International Bank S.C, 7 participants from United Bank S.C, 8 participants from Abyssinia Bank S.C, and 5 participants from Debub Global Bank S.C) were involved in this particular study from banks which listed above. Therefore, the researcher selected those 50 employees purposively and they are worthy for getting an information related to the study. For the purpose of the study, both primary and secondary data were used. Primary data collected through interview and questionnaires distributed to the respondents that involve department managers and senior officers working on loan processing, such involves loan officers, credit analysis, Credit follow-up and monitoring officers, relation managers and recovery officers. Due to qualitative and quantitative nature of data that will be gathered, data analysis would carried out using descriptive statistics by employing Statistical Package for Social Scientist (SPSS) version 20. The descriptive analysis presented using statistical analysis such as frequencies, percentages, means, mode and standard deviations. Based on the findings, most of the respondents agreed on the appropriate credit administration, measurement and monitoring process, credit risk management practice, appropriate credit risk environment, and adequate control over credit risk that are implemented in the selected commercial banks in Ethiopia.
DOI: 10.20372/nadre:19018
Author: NEGASH AYELE
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7082658157
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