| Abstract: | This study assesses the determinants of project loan default: evidence from development bank of Ethiopia. The study revealed the important findings that were derived from quantitative and qualitative analysis: in line with the objective of this research the trend of determinants of project loan default: evidence from development bank of Ethiopia, In this study, employed descriptive research method and explanatory research design and tries to determinate of project loan default by adopted questionnaires to gather first hand and service period. Then, reliability and validity test was conducted in order to check the inconsistency of the data. The reliability was tested through statistical package for social sciences (SPSS) and Cronbach alpha correlation coefficient was used to satisfy the reliability tests. Purposively selects 6 credit units there have 300 employs directly engaged credit managing as target population by considering the loan number and loan diversification. The study had 155 questionnaires distributed and from those questionnaires 138 were collected and returned for analysis. In addition, as regression results show, the significance effects of the bank Credit assessment impact on increasing of project loan default with coefficient of 0.24, Customer factors 0.317, Credit monitors 0.18, collateralizing loans 0.12 and 0.054 Employees Proficiency 0.179.They are all positively related with all project loan default. Generally the study affirmed direct impact of Credit assessment, Customer factors, Collateralizing loans Employees Proficiency, and Credit monitors on project loan default. The policy implications of the study suggest that Development Bank of Ethiopia may need to exercise and develop both qualitative and quantitative method in its day to day making an effort to control and cunning action for all project loan default by the bank and revised its loan policy and procedure accordingly. |
