Published Paper Details:

The objective of this study was to identify determinants of credit risk management of MFIs in Ethiopia. To this end, the researcher employed quantitative approach with explanatory research design where the effect caused by the independent variables on the dependent variable is observed through regression analysis. The purposive sampling techniques have been employed by researcher in order to select 115 sample size from MFIs. The primary data was collected using structured questionnaire. Then, the result of multiple liner regression showed that five variables such as use of collateral, credit risk identification, credit monitoring, and credit policy and credit analysis have positive and statistically significant effect on credit risk management system. Based on the findings of the study, the researcher forwarded possible recommendations for the MFIs in the study area to work on statistically significant variables due to fact that they have significant influence in improving credit risk management system. For instance, having sound credit policy enhances the credit risk management system. So, that it is recommended to MFIs should work on sound credit policy to improve credit risk management system that enables to advance the capacity of MFIs to deliver different financial services to the public.