FACTORS AFFECTING LOAN REPAYMENT PERFORMANCE IN COMMERCIAL BANK OF ETHIOPIA WOLKITE DISTRICT

Abstract

This study was conducted in commercial Bank of Ethiopia wolkite District geographical area. This study was conducted on the factors affecting loan repayment; a Case study of commercial Bank of Ethiopia, wolkite District. The main objective of this study was to identify and analyze the major factors of loan repayment performances in CBE, Wolkite District; more specifically from four different perspectives, borrowers related factors, bank related factors, business/project related factors and factors related to external environments. Both primary and secondary data would be used in this study. The primary data was collected from selected borrowers through questionnaires and pre-tested structured interview with staffs and bank managers. To define and select the population of the study, stratified random sampling was used where borrowers would be stratified based on their loan status. Both descriptive statistics and econometric analyses particularly OLS was employed to present the results and findings of the research. Finally conclusion and recommendation were given