| Abstract: | This study intends to asses non-performing loans in private Banks of Ethiopia ,survey was conducted with professionals engaged in private Banks in Ethiopia holding different positions using a self administered questionnaire.
The findings of the study shows that uncollateralized lending ,under developed credit culture, lenient credit terms, Rapid credit growth and greater risk appetite ascribe to the causes of loan default.
However, the study outcome failed to support the effect of interest rate they charge and occurrence of non-performing loans.
The study suggest that banks should put in place a vibrant credit process that ensures proper customer selection, robust credit analysis private monitoring and clear policy frame work that addresses issues of conflict of interest, ethical standard and check and balance in credit process, organizational capacity enhancement of banks, deliberate effort to develop culture of the public towards credit and its management by banks and ensuring prudent policies that govern bank loans. |
