Assessment of Credit Management in Case of Awash Bank

CHAPTER ONE 1. Introduction 1.1. Background of the study The word credit has been derived Latin word â€Å"credo† which means I believe or I truest which signifies at trust of confidence reposed in another person. The term credit thus means reposing trust of confidence in some body. Credit is purchasing power not derived from income but created by financial institution either as an offset to idle income held by deposition in the bank or as a need addition to the total amount purchasing. By credit we mean the power which one person has to induce another to put economic good at this disposal a time on promise or future payment. Credit is thus, an attributed of power the borrower (Thomas 1999). Credit is exchange function in which†¦show more content†¦1.7. Back ground of the organization Awash international bank S.C (AIB) was established as the first private commercial bank after the renaissance of Ethiopian private sector on November 10, 1994 by 486 founder share holders with a paid up capital of birr 24.2 million and started banking operation on February 13, 1995. Over the past sixteen years the number of share holder and the amount of paid up Capital has increased 2834 and birr 560 million respectively. It started in Ambo branch / town in July 11, 2008 and by the number of 23 employees. The objective of the bank is to provide efficient, competitive, diversified and profitable banking service to a continues growing number of customer in a socially responsible manner supported by appropriate modern banking technology as well as qualifies, trained and motivated team of management and employees imbued with high professional and ethical standard. Awash international bank is now operating more than 64 branches in all over the country; Ambo town branch is one of them. AIB complete their own construction of its own head office building inShow MoreRelatedPost Mergers Hr and Cultural Issues3641 Words   |  15 Pagesdriver for market dominance, geographical expansion, leverage in resource and capability acquisition, competence, adjusting to competition. MAs are strategic alliances. People Management plays a critical role in MA. People [pic]issues like staffing decision, organizational design, etc., are most sensitive [pic]issues in case of MA negotiations, but it has been found that these [pic]issues are often being overlooked. 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