DETERMINANTS OF BANK CREDIT ACCESS FOR CUSTOMERS: EVIDENCE FROM BANK OF ABYSSINIA BAHIR DAR CITY, ETHIOPIA

Abstract

The objective of this study was to examine the determinants of credit access for customers of bank of Abyssinia. The research was applied both qualitative and quantitative research approach and cross-sectional research data to meet the research objectives. This study was conducted based on the data gathered from customers of Bank of Abyssinia in Bahir Dar town. Survey was conducted using questionnaires. 137 questionnaires have been distributed for the respondents and all responses were properly filled the questionnaires. The study shows that education, political condition, income, interest rate and saving have appositive significance influence on credit access. Gender has a negative significance influence on credit access for customers of BOA in Bahir Dar town. The study recommended that BOA should be give training for Credit relation managers, top management Credit Appraisal managers and the bank goes based on the correct credit procedures of the bank without biasedness by revising its working habit and providing small amount of credit facilities by taking in to consider the customers guarantees or collaterals to cover their liabilities.

Keywords: Credit Access, Binary Logistic Regression, Odds Ratio, Deviance test, bank of Abyssinia