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Assessment of Housing Mortgage Loan Practices in Ethiopia: The Case of Commercial Banks in Ethiopia

International Journal of Financial Management

Volume 13 Issue 2

Published: 2023
Author(s) Name: Dakito Alemu Kesto, Blen Habtom | Author(s) Affiliation: Addis Ababa University, CoBE School of Commerce, Ethiopia.
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Abstract

These days, the need for proper housing has been increasing rapidly with the population, and the source to finance this basic need has been scarce. Though there are mortgage loans provided by commercial banks, the administration hasn’t been easy. This research study aimed to investigate the challenges faced by commercial banks in the housing mortgage loan sector and to provide recommendations for improving the sector. A purposive sample has been taken to conduct this research and the study utilised a qualitative research design. The findings revealed that commercial banks face several challenges in the sector, and that there is no regulation for the sector. Finally, it is recommended that the government implements policies and regulations tailored to the specific needs of the country to guide the housing mortgage loan sector.

Keywords: Mortgage, Housing, Loan, Bank, Mortgage Loan Sector

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