Assessment of Credit Running Scheme on Abay Bank, Wolkite Branch, Ethiopia

Abstract

This study of evaluation of loan and advanced management systems. It aimed to designate the position of loan and advance management in financial institutions such as commercial banks, micro finances and others. Thus, the rationale behind undertaking this study was to investigate loan and advance management problems and suggest possible solutions that enable the bank to run its manoeuvre most safely, as loans and advances are known to be the mainstay of all banks. The ability of banks to frame and adhere to policies and procedures that promote loan quality and curtail non-performing loans is the means to endure stiff competition. Incapability to create and build up quality loans and credit-worthy customers leads to default risk and bankruptcy and hampers a country's economic growth. However, according to the researcher, a study must be conducted to evaluate loans and advanced management systems at the Abay Bank Wolkite branch. The study's main objective was to assess the loan and advance management system of Abay Bank in the Wolkite branch. Both primary and secondary data are used for the study. Primary data was collected using questionnaires. The secondary data was collected from published and unpublished documents. Descriptive statistical tools are used to analyze the data collected. Hence, the nature of the study was descriptive. Finally, based on the findings, possible conclusions and recommendations were given.