COMPARATIVE ANALYSIS ON CREDIT RISK OF DASHEN BANK AND NIB INTERNATIONAL BANK OF ETHIOPIA

Abstract

This research paper titled “comparative analysis” was conducted by taking Dashen Bank (DB) and Nib International Bank as case study. The main objective of the study is to evaluate and compare the Credit Risk of Dashen bank and Nib bank for the fiscal period (2011-2015 G.C). To achieve this objective, mainly secondary data sources was used. The secondary data is collected from annual reports, directives, and bulletins of thebank. Descriptive statistical tools are used in analyzing the data collected. This study was used quantitative research approach to examine a stated objective because quantitative research is a systematic and scientific investigation of quantitative properties and phenomena and their relationships and also; the research used comparative analysis and ratio analysis to measure their financial Credit Risk. The ability of banks to formulate and adhere to policies and procedures that promote credit quality and curtail non-performing loans is the means to survive in the stiff competition. To achieve stated objective of study, the research used descriptive research methods. Descriptive research designs focus on describing station at set of circumstance by observing to give scientific description. The researcher also relayed on descriptive method, because of this method is more suitable to describe measure, compare and classify the Credit Risk of Dashen bank and Nib international banks