ASSESSEMENT OF CREDIT APPRAISAL AND MANAGEMENT PRACTICE IN CASE OF UNITED BANK S.C.

Abstract

The Bank act as an intermediary to mobilize the excess fund of surplus sectors to provide necessary finance, to those sectors which are needed to promote for the sound development of the economy, this study is then assessed the overall credit management practice of the Bank, in such a way that it assesses the credit appraisal, approval, disbursement, monitoring and controlling practices of the bank, so that it helps to make possible suggestions to improve present credit management practice in the banking sector in Ethiopia especially in the case bank. The study was also undertaken to get an in depth idea of the credit management practice of commercial Banks, and the main objective of this descriptive research study as highlighted above, is to assess the overall credit management practice of among the well-known Ethiopian commercial banks called United Bank S.C with a general objective of assessing the quality and adequacy of its credit policy, processing and appraisal techniques, and credit monitoring and controlling practice of the bank. Furthermore the researches deploys a mixed research approach, among the non-probabilistic sampling methods, purposive sampling technique were used, and structured questionnaire and interview were implemented as an instrument to collect primary data that are helpful to conduct the research work. From the study it was evident that the bank, maintained standard and adequate credit management policy though it requires some improvement in the changing market situation to ensure its profitability and sustainability in the industry.