Muluken Mequanint

Credit Risk Management: Assessment of Credit Risk Management Practice of Micro Finance Institution Muluken Mequanint

Credit risk management practice of most micro finance institution owing their age and other factors are very poor in credit risk management. This will affect the sustainability of these institution s. hence due care should be given for credit risk management. Data for research will be gathered through both primary and secondary sources. Primary sources relates to questionnaire distributed to customers and employees of the institution. The secondary data related to documentary sources relating to client screening, computation of portfolio quality indicators ratios. A sample of 30 customer of the institution selected on systematic sampling plan will fill up the questionnaire. Besides 10 employees of the institution selected on judgment sampling will fill questionnaire. The data gathered will be analyzed using qualitative descriptions descriptive statics.