Assessment of Credit Analysis, Processing and Maintaining an Appropriate Credit Management Practice in the case of Commercial Bank of Ethiopia Dire Dawa District

The main purpose of this study was to assess credit analysis, processing and maintaining an appropriate credit management practice in the case of Commercial Bank of Ethiopia Dire Dawa District. Descriptive and explanatory research design and quantitative methods and the data analyses through descriptive and inferential statistical analysis methods were used. The descriptive statistical tools such as percentages, frequencies, mean and standard deviation and also inferential statistics data analysis were multiple linear regression models analysis and Pearson correlation analysis to establish and explain the relationship between the dependent and the independent variables by using Statistical Packages for Social Sciences (SPSS) Version 26 Software. Among hypothesized five major variables, four of them Credit Examination, Credit Assessment, Credit Scoring and Credit Reports positive and significant, while Credit Collection technique was weak and insignificantly determine Credit Management Practice in Commercial Bank of Ethiopia Dire Dawa District. Therefore, effective credit collection techniques are one of the necessities for financial institutions in any economic climate. The weaknesses in collection techniques which most of the employees have agreed might adversely affect credit management of the bank. Finally the researcher recommends bank’s credit collection systems should follow creative way of credit collection that assists to meet the required level of bank’s growth