THE ROLE OF FINANCIAL INSTITUTIONS IN PROMOTING PRIVATE INVESTMENT (IN CASE OF MEKOY TOWN)

Abstract

This research paper was conducted on the role of financial institutions in promoting private investment case the case of Mekoy town financial institutions and investors. There are specific objectives in the study that have been mentioned. In order to achieve the objectives of the study, descriptive data design has been used. The source and method of data collection in the study were from primary in the form of questionnaires and interview; and a secondary source of the study was considered from published and unpublished material. Census method was applied to collect data from financial institutions and investors in Mekoy town. Data were collected from total 10 financial institutions and 15 investors including managers, officials and employees through questionnaires distribution. The data analysis and presentation was displayed in the form of table sketch which are derived from the questionnaires. According to the finding of the study, financial institutions like banks and micro finances made crucial role in providing deposit (saving) and loan services for investors by medium interest rate and it enabled them to invest more in the town. Finally, after the findings have stood out, the researcher recommended that financial institutions should give better privilege and more chance to private investors in granting loans than an individual’s credit users; and it is also recommended for the financial institutions to provide their service in full scale to address more investors coming to the area of investment.