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Factors Affecting Letters of Credit Effectiveness: Perception Survey On Trade Services and International Banking Staffs of Awash Bank East Region

Theodros Fessehaye


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<oai_dc:dc xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:oai_dc="http://www.openarchives.org/OAI/2.0/oai_dc/" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xsi:schemaLocation="http://www.openarchives.org/OAI/2.0/oai_dc/ http://www.openarchives.org/OAI/2.0/oai_dc.xsd">
  <dc:creator>Theodros Fessehaye</dc:creator>
  <dc:date>2025-10-23</dc:date>
  <dc:description>Letter of credit has become widely used in international trade as the payment instrument. The purpose of this study is to assess the determining factors of letters of credit effectiveness in the process of import and export practices in AIB East Region. Employing content analysis, this study found that 51% of trade documents contained discrepancies and did not comply with terms and conditions of letter of credit, 44% of documents contained discrepancies and did not comply with the ambiguity of context of the Uniform Customs and Practice 600 and only 5% of discrepancy of trade finance documents originated from clerical errors. This study used both descriptive and explanatory research designs. Data were collected from primary sources through questionnaire and structured interview and analyzed through both descriptive and correlation analysis by using Statistical Package Social science (SPSS) program The correlation relation test showed that formation place r (90) =.680,P&lt;.01,place of payment r (90) =.667, p&lt;.01, language and currency r (90) =.728 p&lt;.01 and documentary condition r (90)=.684, p&lt;.01 had statistically significant relationship with LC effectiveness. To this end, with the support of multivariate analysis, results showed that formation place (0.00010), place of payment (0.00005), language and currency (0.00002), and documentary condition (0.00003) statistically affects LC effectiveness. Banks that facilitate international trade as a major financial institution in goods and service including payment processing for merchandise shipped and services rendered, layouts funds for buyer and seller, and give professional advice to traders specially accurately rendering foreign banking services to facilitate the country's international trade</dc:description>
  <dc:identifier>https://zenodo.org/record/20584</dc:identifier>
  <dc:identifier>10.20372/nadre:20584</dc:identifier>
  <dc:identifier>oai:zenodo.org:20584</dc:identifier>
  <dc:relation>doi:10.20372/nadre:20583</dc:relation>
  <dc:relation>url:https://nadre.ethernet.edu.et/communities/ddu-business-economics</dc:relation>
  <dc:rights>info:eu-repo/semantics/openAccess</dc:rights>
  <dc:rights>http://www.opendefinition.org/licenses/cc-by</dc:rights>
  <dc:subject>Letter Of Credit, International Trade, Awash Bank East Region</dc:subject>
  <dc:title>Factors Affecting Letters of Credit Effectiveness: Perception Survey On Trade Services and International Banking Staffs of Awash Bank East Region</dc:title>
  <dc:type>info:eu-repo/semantics/doctoralThesis</dc:type>
  <dc:type>publication-thesis</dc:type>
</oai_dc:dc>
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