3.1.

Method of data collection

The type of data to be used in the study is primary data, which will assist in answering the
research questions. According to Ghauri and Gronhaug (2010), primary data have the advantage
of being collected for a particular project that is at hand and are therefore more consistent with
research questions and objectives.
The primary data which will be used in the study will use a structured questionnaire method to
collect the data.” Questionnaires are generally highly structured data collection instruments
“(Quinlan, 201 1, p. 223). Questionnaires will enable the researchers collect a large number of
quantitative data (Sekaran and Bougie, 2013) hence attaining the most information possible. The
questionnaires to be used will consist of both open ended (which allow respondents to express
themselves) and closed questions (for example yes/no responses), (Quinlan).
The researcher will prepare questioner distributing among the heads of selected and responsible
department that have a direct relation and full information about the credit risk of the bank. The
researcher will select the sample size and then the samples will fill the survey questioner. Further
more different manuals of the bank directives of the controlling Authority (The national bank of
Ethiopia), inter office memos yearly bulleting and also the bank website will use as secondary
data sources.

3.2. Method of data analysis

The purpose of data analysis is to reduce accumulated data to a manageable size, developing
summaries, looking for patterns, and applying statistical techniques (Cooper and Schindler,
2011).
After collecting the data from both primary and secondary sources, the researchers will carefully
and systematically analyze it. In light of this, the data collected will be organized through
classifying, tabulating, editing and counting and transformed in to meaningful information and
ultimately a rational conclusion was cultivated. The data will be then presented in a convenient
and informative way including frequency tables, graphs and charts for easier analysis and
interpretation.