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ST. MARY UNIVERSITY SCHOOL OF GRADUATE STUDIESDETERMINANTS OF NONPERFORMING LOAN: A CASE OF DEVELOPMENT BANK OF ETHIOPIA Re diet GebeyehuDeterminants of Nonperforming loan: A case of Development bank
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01
Gather all necessary loan information including the borrower's details, loan amount, repayment terms, and payment history.
02
Identify the specific factors contributing to the loan's non-performance such as economic conditions, borrower behavior, or lack of collateral.
03
Calculate the non-performing loan ratio by dividing the total amount of non-performing loans by the total amount of loans outstanding.
04
Analyze trends in non-performing loans over time to identify potential risks and take proactive measures to mitigate them.
05
Regularly update and review the determinants of non-performing loans to ensure they accurately reflect the current loan portfolio.

Who needs determinants of non-performing loan?

01
Financial institutions such as banks, credit unions, and microfinance institutions.
02
Regulatory authorities and policymakers overseeing the banking sector.
03
Investors and analysts evaluating the performance of financial institutions.
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Determinants of non-performing loan are factors that contribute to the classification of a loan as non-performing, such as past due status, default, and insolvency.
Financial institutions and lenders are required to file determinants of non-performing loans as part of their regulatory reporting requirements.
Determinants of non-performing loans are typically filled out by providing information on loan status, default history, borrower financials, and other relevant data in a standardized format specified by regulators.
The purpose of determinants of non-performing loans is to help regulators and stakeholders assess the credit quality of a financial institution's loan portfolio and monitor potential risks.
Information such as loan balances, payment history, collateral value, borrower creditworthiness, and other relevant data must be reported on determinants of non-performing loans.
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