Comparative Analysis of Loan Disbursement And Collection Among Selected Commercial Banks in Ethiopian

Comparative Analysis of Loan Disbursement And Collection Among Selected Commercial Banks in Ethiopian | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Comparative Analysis of Loan Disbursement And Collection Among Selected Commercial Banks in Ethiopian Gemechu Feyissa This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-9359602/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract Economic growth is difficult to sustain without a solid and sound financial system. Banks are among the largest lenders to retail, commercial, and corporate sectors. When loan disbursement controls are weak, the reliability of the loan management process is significantly compromised. Therefore, the objective of this study is to compare and contrast the loan disbursement and collection practices of selected commercial banks in Ethiopia using secondary data collected from the National Bank of Ethiopia for the period 2002–2017. To analyze the data, an exponential growth rate model was employed. The results indicate that the Commercial Bank of Ethiopia ranked first in both loan disbursement and collection during the study period. This performance may be attributed to increased credit demand driven by the expansion of both existing and new investment ventures in the country. Furthermore, variability in loan collection growth was highest for United Bank (CV = 93%), followed by Nib International Bank (CV = 84%), while Wegagen Bank showed the lowest variability (CV = 59%) during the same period. To improve loan disbursement and collection performance, banks should conduct thorough assessments of borrowers’ backgrounds and credit histories. International Business Loan Disbursement Loan Collection Banks Full Text Additional Declarations The authors declare no competing interests. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. 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Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-9359602","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":619810812,"identity":"d02befa2-7e45-492c-83b1-0969d704d518","order_by":0,"name":"Gemechu Feyissa","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAAAw0lEQVRIiWNgGAWjYFACxgcMDAY2ciDmgQfEaWE2YGAoSDMGa0kgXsuHw4kNIDZRWuTDDjN//GFwOH1+2OGHQFvs5HQbCGgxvJ3MJs1jkJ678XaaAVBLsrHZAUJaZucfY2YwsM7dODsBpOVA4jbCWpJBDmNON5yd/oE4LfLSyQwSPAbOCfLSOUTaYiAN9kua4QbpnIIDCQZE+EUe7LA/NvLys9M3f/hQYSdHUIvBARSGAQHlYFsa0BmjYBSMglEwCtABAEWnRK2rGkEgAAAAAElFTkSuQmCC","orcid":"","institution":"wollega university","correspondingAuthor":true,"prefix":"","firstName":"Gemechu","middleName":"","lastName":"Feyissa","suffix":""}],"badges":[],"createdAt":"2026-04-08 16:44:22","currentVersionCode":1,"declarations":{"humanSubjects":true,"vertebrateSubjects":false,"conflictsOfInterestStatement":false,"humanSubjectEthicalGuidelines":true,"humanSubjectConsent":true,"humanSubjectClinicalTrial":false,"humanSubjectCaseReport":true,"vertebrateSubjectEthicalGuidelines":false},"doi":"10.21203/rs.3.rs-9359602/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-9359602/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":108804921,"identity":"dbda399a-ca9c-4deb-9225-8339cc446cd4","added_by":"auto","created_at":"2026-05-08 15:24:15","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":346950,"visible":true,"origin":"","legend":"","description":"","filename":"loancollection2.pdf","url":"https://assets-eu.researchsquare.com/files/rs-9359602/v1_covered_9bdf7661-0839-4349-9e5e-f9a8b62bb1b7.pdf"}],"financialInterests":"The authors declare no competing interests.","formattedTitle":"\u003cp\u003eComparative Analysis of Loan Disbursement And Collection Among Selected Commercial Banks in Ethiopian\u003c/p\u003e","fulltext":[],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":true,"hideJournal":true,"highlight":"","institution":"Wollega University","isAcceptedByJournal":false,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":true,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"Loan Disbursement, Loan Collection, Banks","lastPublishedDoi":"10.21203/rs.3.rs-9359602/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-9359602/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eEconomic growth is difficult to sustain without a solid and sound financial system. Banks are among the largest lenders to retail, commercial, and corporate sectors. When loan disbursement controls are weak, the reliability of the loan management process is significantly compromised. Therefore, the objective of this study is to compare and contrast the loan disbursement and collection practices of selected commercial banks in Ethiopia using secondary data collected from the National Bank of Ethiopia for the period 2002\u0026ndash;2017.\u003c/p\u003e \u003cp\u003eTo analyze the data, an exponential growth rate model was employed. The results indicate that the Commercial Bank of Ethiopia ranked first in both loan disbursement and collection during the study period. This performance may be attributed to increased credit demand driven by the expansion of both existing and new investment ventures in the country.\u003c/p\u003e \u003cp\u003eFurthermore, variability in loan collection growth was highest for United Bank (CV\u0026thinsp;=\u0026thinsp;93%), followed by Nib International Bank (CV\u0026thinsp;=\u0026thinsp;84%), while Wegagen Bank showed the lowest variability (CV\u0026thinsp;=\u0026thinsp;59%) during the same period. 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