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The field of credit management is more challenging as it offers relatively greater scope to bankers for judgment and discretion in selecting their loan portfolios. The rationale behind for undertaking this study is to deeply investigate the root causes of credit management problems. So this study intends to evaluate the credit management practices and problems of Development bank of Ethiopia, North region, Tigray. The findings of the study depicts that the credit policy of the bank was rigid as compared to other banks that operate in the region; term-loans were the major type of credit which the Bank was giving; the major credit collection techniques used by the Bank were telephone and personal visit. Furthermore, the result of the study showed that lack of market for clients product/service, credit policy of the bank, environmental problems, and loans diversion were the major causes for default which the bank was suffering from.

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Dereje Worku Tesso, MBA; studied B.A in Management and Public Administration (Management) at Addis Ababa University and MBA (Finance Specialization) at Mekelle University. He is currently working as a lecturer at Wolaita Sodo University.

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