Assess the Problems of Interest Rates on Deposits and Loans (A Case Study on Commercial Bank of Ethiopia, Korhay Branch

Abstract

This study was conducted to assess the problem of interest rate on deposit and loan of commercial bank of Ethiopia korhay branch. Bank is an organization that keeps money safely for its customers. Interest rate is the main source of income and profits for the bank. The main objectives of this research paper were to assess the problem of the interest rate on deposits and loans of banks on the profitability of the bank. To investigate the problem of interest rate on deposit and loan the researcher used descriptive type of research design and both primary and secondary data. Primary data would have been collected by interviewing the manger and questionnaires were used to collect necessary information from the employees of the institution. The secondary data was collected from journal and written documents. The study would have been analyzed both by qualitative and quantitative analyses technique. The other most important notice to understand here is there is a need of percentage computation and table for analyzing and interpreting the data assessing the problem of interest rates on deposit and loan of the bank. Based on these findings, the researcher recommended that the bank should permanent interest rate which will not affect both the bank profit and customers need.

Keywords: money, interest rate, deposit, loan and commercial bank

DOI: 10.7176/RJFA/13-23-01

Publication date: December 31^st 2022