• ABDIRASHID ABDILAHI AHMED
• Harpreet Kaur

Commercial banks priority sector lending in Ethiopia *Abdirashid Abdilahi Ahmed **Dr. Harpreet Kaur *Research scholar, Department of Commerce, Punjabi University, Patiala, Punjab, India. Email: alraxiil01@gmail.com . **Associate Prof., Department of distance Education, Punjabi University, Patiala, Punjab, India. E-mail- Harpreet.pbiuniv@gmail.com Abstract Financial system development and proper credit deployment for the real economic sectors are among the major inputs for a countries’ economic development, the access to a cheap and timely credit for to small holder farmers, small scale industrialist and small business enterprises these are the base for economic growth and prosperity. The financial system also influences the deployment of scarce financial resource towards productive sectors so as to promote national development agenda. Studies shows that a rapid growth of banks operation in developing countries has boosted the branch network expansion, increase in the quantum of deposits and credit deployment, thus it affects the growth of the priority sectors development. Hence this study has analyzed the credit deployment of commercial banks in Ethiopia on various sector wise and disparity wise analyzes. The study has used a secondary data sourced from national bank of Ethiopia (NBE). The major finding of the study indicates that there was a significant difference of credit deployment both sector wise and state wise. The study has recommended the review of sector wise policies so that they can attract the credit deployment of the banks in larger scale, to ensure fair credit distribution in the country government should establish national credit council (NCC) and at the same time the adoption of international best practices that promotes the wise use of the financial resource such as the lead banking scheme in India is very crucial as well. Key words: Commercial Banks, Priority sectors, Credit deployment

Key words: Commercial Banks, Priority sectors, Credit deployment

"Commercial banks priority sector lending in Ethiopia", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.5, Issue 11, page no.553-561, November-2018, Available :http://www.jetir.org/papers/JETIR1811A67.pdf

"Commercial banks priority sector lending in Ethiopia", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.5, Issue 11, page no. pp553-561, November-2018, Available at : http://www.jetir.org/papers/JETIR1811A67.pdf