HAWASSA UNIVERSITY COLLEGE OF BUISINESS &

ECONOMICS
Report documentation of commercial bank of Ethiopia from
Yirgalem industry park branch
Submitted to the Department Of Economics

BY

NAME ID
Fikadu Ayele 0118/12

May 24, 2023

Yirgalem, Ethiopia
 CONTENT
ACKNOWLEDGMENT................................................................................................................iii

ABRIVATIONS.............................................................................................................................iv

ABSTRACTS..................................................................................................................................v

1. INTRODUCTIN...................................................................................................................1

1.1 History of the Organization...............................................................................................1

1.2 Main Function of the Host Organization..........................................................................2

1.3 Vision, Mission Statement and Core Value of the Institution..........................................3

1.3.1 Vision............................................................................................................................3

1.3.2 Mission..........................................................................................................................3

1.3.3 Core Value.....................................................................................................................3

1.4 Organizational Structure...................................................................................................4

1, 5 Duties and Responsibility of Key Personnel........................................................................5

2. MAIN PROGRAM IN THE ORGANIZATION.................................................................7

2.1 Key Function of the Department.......................................................................................7

2.2 Staff Establishment of the Department.............................................................................9

3. MAIN ACTIVITIES DURING THE ATTACHMENTS...................................................10

3.1 Students Main Objective for the Attachment Exercise...................................................10

3.2 Attaches Assigned Routine Duties Departments Participation Form.............................10

4. SKILL AND EXPERIENCE..............................................................................................11

4.1 Summary of Skill Gained................................................................................................11

4.2 Challenges Encountered By Students.............................................................................11

4.3 How to Overcome the Challenges..................................................................................11

4.4 SWOT analysis...............................................................................................................12

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 4.4.1 Strength:......................................................................................................................12

4.4.2 Weakness:....................................................................................................................12

4.4.3 Opportunities:..............................................................................................................12

4.4.4 Treats:..........................................................................................................................13

5. CONCLUSION AND RECOMMENDATION.................................................................14

5.1 Conclusion......................................................................................................................14

5.2 Recommendation............................................................................................................14

REFERENCE................................................................................................................................16

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 ACKNOWLEDGMENT
First and foremost, praises and thanks to God, the Almighty for his showers of blessings
throughout my attachment work to complete the report successfully. I would like to express
my special thanks of gratitude for commercial bank of Ethiopia especially for Yirgalem
Industry Park branch manager Mr. Henok .S, for all his comment, suggestion, support and
freedom that I have got during the attachments and for all staff members.

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 ABRIVATIONS
AA………………………Addis Abeba

AAOIFI………………..Accounting and Auditing Organization for Islamic financial institution

CBE……………………Commercial bank of Ethiopia

CEO……………………Chief executive officer

ID……………………….Identity card

SBE…………………….State bank of Ethiopia

SBD…………………….State bank of Djibouti

VDI……………………..Virtual Desktop Infrastructure

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 ABSTRACTS
During the report was processed to access the skill gap and the problems
observed by host organization, the causes of the problems and their solutions on the
respective services and products of my training. The report was conducted on both bank
service and product of CBE. The required data was collected by using direct observation,
discussion with concerned parts, using observed service, online or search engines and
office documents. All the problems caused because of shortage of skilled manpower, lack
effective strategies and poor integrity and organizational commitment to properly
implement the lined to the goals of bank industry, lack of commitment, good attitude,
skill, knowledge, integration, and coordination etc. of the stake holders of the
organizations.

I have worked my practical attachment at CBE Yirgalem agro industrial park

branch. The bank support economic development of the country by financing and
providing loan service for huge industry and business the bank is one of the leading
financial institutions in the country. Customer care service department is one of the
departments structured under Commercial bank of Ethiopia Yirgalem agro industrial
park branch as a unit and perform its duties and responsibilities by setting specific and
feasible objective. Major activities performed by this department are account opening,
cash withdrawal, deposit and checker activity. By performing this duties and
responsibilities effectively and efficiently the department has its own contribution for the
success of the bank.

But now a day the quality of service given by CBE is not satisfactory so CBE has
to focus on the quality of service that is given to the customer instead of controlling the
market or banking business by adding too many braches. To get many customer the
number of branch is mandatory but the quality and modernization of service is also the
most essential things which means if you give the better service you will get many
customer and it’s possible to minimize the expense that has gone for the labor. Through
that way it’s possible to overcome the problem of CBE related to customer handling and
providing quality service.

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 1. INTRODUCTIN
1.1 History of the Organization.
After the Ethiopian victory over Italy during World War II, the new government issued a
proclamation on 26 August 1942 that established the State Bank of Ethiopia (SBE). SBE
commenced full operations on 15 April 1943 with two branches and 43 staff. It served both as
Ethiopia's central bank, with the power to issue banknotes and coins as the agent of the Ministry
of Finance, and as the principal commercial bank in the country. In 1945 the Ethiopian
government granted the bank the sole right of issuing currency. The first governor of the bank
was an American, George Blowers. He inaugurated the new national currency, which owed its
successful introduction to the United States. The United States provided the silver for 50-cent
coins, whose intrinsic value ensured popular acceptance of the new paper money to a population
used to the circulation of the silver Maria There sat haler. In 1958, the State Bank of Ethiopia
established a branch in Khartoum, Sudan. Over time SBD's branch network grew to number 21
branches. In the
1950s, SBE established a branch in Djibouti. In 1920 the Bank of Abyssinia had

Opened a transit office in Djibouti. At some point after the creation of the State Bank of Ethiopia
it reopened the transit office, which in time became a branch. In 1963, the Ethiopian government
split the State Bank of Ethiopia into two banks, the National Bank of Ethiopia (the central bank),
and the Commercial Bank of Ethiopia (CBE). [8] Seven years later, the Sudanese government
Nationalized the Commercial Bank of Ethiopia's branch in Khartoum that had originally been the

Sudan branch of SBD. The Ethiopian government merged Addis Bank into the Commercial
Bank of Ethiopia in 1980 to make CBE the sole commercial bank in the country. The
government had created Addis Bank from the merger of the newly nationalized Addis Ababa
Bank, and the Ethiopian operations of the Banco di Roma and Banco di Napoli. Addis Ababa
Bank was an affiliate that National and Grind lays Bank had established in 1963 and of which it
owned 40%. At the time of nationalization, Addis Ababa Bank had 26 branches. The merger of
Addis Ababa Bank with CBE made CBE the sole commercial bank in Ethiopia, with 128
branches and 3,633 employees. In 1991, when Eritrea achieved its independence, the Eritrean
government nationalized the branches there. In 1994 these branches formed the basis for what
became the Commercial Bank of Eritrea. Also in 1994, the Ethiopian government reorganized

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and reestablished CBE. In 2004, CBE closed its branch in Djibouti due to problems with loan
losses. In January 2009, CBE received regulatory approval to open a branch in Juba, Southern
Sudan. CBE expanded its presence in South Sudan to five branches in Juba and Malakal, but

Ongoing conflict in the country has forced CBE to close all but two branches in Juba. [A few
years ago, [when?] the government restructured CBE and signed a contract with Royal Bank of
Scotland for management consultancy services. After the death of its former President Gezahegn
Yilma, the Board of Management appointed Abie Sano as a new President of the Bank. The
Parliament recently increased the bank's capital to 4 billion Ethiopian birr. The bank has reached
1284 branches as of 10 August 2018.

1.2 Main Function of the Host Organization

The functions of commercial banks are classified into two main divisions.

(a) Primary functions

 Accepts deposit: The bank takes deposits in the form of saving, current, and fixed
deposits. The surplus balances collected from the firm and individuals are lent to the
temporary requirements of the commercial transactions.
 Provides loan and advances: Another critical function of this bank is to offer loans and
advances to the entrepreneurs and business people, and collect interest. For every bank, it
is the primary source of making profits. In this process, a bank retains a small number of
deposits as a reserve and offers (lends) the remaining amount to the borrowers in demand
loans, overdraft, cash credit, short-run loans, and more such banks.
 Credit cash: When a customer is provided with credit or loan, they are not provided with
liquid cash. First, a bank account is opened for the customer and then the money is
transferred to the account. This process allows the bank to create money.

(b) Secondary functions

 Discounting bills of exchange: It is a written agreement acknowledging the amount of

money to be paid against the goods purchased at a given point of time in the future. The
amount can also be cleared before the quoted time through a discounting method of a
commercial bank.

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  Overdraft facility: It is an advance given to a customer by keeping the current account to
overdraw up to the given limit.
 Purchasing and selling of the securities: The bank offers you with the facility of selling
and buying the securities.
 Locker facilities: A bank provides locker facilities to the customers to keep their
valuables or documents safely. The banks charge a minimum of an annual fee for this
service.
 Paying and gathering the credit: It uses different instruments like a promissory note,
cheques, and bill of exchange.

1.3 Vision, Mission Statement and Core Value of the Institution

1.3.1 Vision

A world-class commercial bank financially driving Ethiopia's future..

1.3.2 Mission

We are committed to realize stakeholder’s values through enhanced financial intermediation

using the best professionals and technology.

1.3.3 Core Value

Our core values detailed below are the operating principles that guide our internal conduct as
well as our relationship with our customers, partners, and shareholders.

 Integrity.

 Service Excellence.

 Professionalism.

 Empowerment.

 Innovative Organization.

 Teamwork.

 Respect for Diversity.

 Corporate Citizenship.

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1.4 Organizational Structure
A commercial bank is a financial institution that offers banking services directly to consumers,
such as checking and deposit accounts. The structure of a commercial bank may be very similar
to a regular organization, depending on the size of the bank. There are usually a

 CEO,

 Executive directors,

 Operations managers,

 Internal auditors,

 Standard bank staff.

A CEO and executive directors work at the commercial bank’s main location. The corporate
office is responsible for internalizing bank regulations and enforcing policy on all its member
banks. These individuals may also look for new avenues to increase money-generating activities,
including finding new locations for banks.

Executives may visit local bank locations, but it may not be a common activity. Their role is to

oversee the entire bank’s actions and create a formal and repeatable structure in the bank.

Local bank managers who operate each location. These managers handle all problems at a local
level, complete financial reports for regional or executive directors, and find ways to improve
efficiency. A local manager is also the point person for implementing new rules or regulations
from the corporate office. If a commercial bank does offer some consumer loans, the manager
may need to review loans and other activities. This is both a quality control measure and an
internal control process for the commercial bank.

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In district level organizational structure are shown below

1, 5 Duties and Responsibility of Key Personnel

The customer service officer (checker): customer service officer perform the following:

 Make sure that the account documents are properly prepared and the opened accounts are
authentic.
 Make sure that the customer’s name is not the mal-operation list.

 Types the necessary particulars on the pass book(for a savings account) write the
customers full name and account number on the back of the photograph and tacks some
onto the pass book(for the saving account) and on to the application form.
 Authorizes the account opening and co-signs on all the account opening documents and
passbook (for the saving account).
 Put a stump on affixed photo by covering there with the lower half of it.

 Forward the check requisition form filled out by the applicant to the senior customer’s
services officer accounts.
 Checks and authorizes the scanned signatures and

 Pass on to the branch controller the opening documents-that is, the application form a
copy of the ID card and the trade license (if the applicant is a trade operator) and all the
other relevant documents (if the applicant is an organization).

The customer service manager (branch manager): activities of the branch manager:

 Authorizes amendment on customer record initiated by the customer services

office/maker.

 Authenticates the customer ID card lenience form the issuing organ. However, if the
branch manager or customer service manager believes that the customer is properly
identified and she/he specifies and sign on the application no need for authentication.

The branch controller: following activities are performed by the branch controller:

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  Collects from the customer service officer checker all the documents submitted for the
opening of an account and make, sure that the accounts opened as pen the banks pertinent
policy and procedure.
 Make sure that the name of the newly opened account holders is not on the list of
accounts closed for mal-operation.
 Signs on the documents to ascertain the correctness and accuracy of the newly opened
accounts.
 Follow up the customer ID card licensee are authenticated within one month.

2. MAIN PROGRAM IN THE ORGANIZATION

2.1 Key Function of the Department
Legal Department

A group of skilled legal professionals who have gained experience in banking work. Their role
is to look into all the contracts that the bank intends to sign, as well as to ensure that all the
banks Contracts are in line with the laws of the National Bank on the one hand and protect the
bank on the other hand, as well as representing the bank before external and internal parties. The
most important thing that distinguishes the staff of this department is that they always think
outside the box in order to find solutions and the purpose of which is to serve the bank’s
customers, who are the most valuable possessions of the bank, relying on countries law.

Financial Department

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The financial department is considered one of the important departments in the bank, as it
submits financial statements and final accounts and the accompanying specialized financial
statements and reports, provided that it conforms to Islamic and international accounting
standards and according to the laws, regulations and instructions in force from the National
Bank of the country and works on managing internal and external accounts through the network
of precise systems Which works on Preparing reports, statistics and financial movements inside
and outside the bank with customers and companies.

Credit Department

It is one of the most important strategic departments that work to provide various credit services
such as (Profit, Speculation, Sharing, Leasing, as well as letters of guarantee). All of these
services are provided in a modern technical manner according to the latest software and within
bank frameworks.
Financial Institutions (AAOIFI)).

The Bank seeks to provide services and consultancy for economic projects and to support and
study projects submitted by individuals within a diversified plan that applies the policy of
financial inclusion and according to the laws, instructions and directives of the National Bank of
the country.

Information Security Department

It is considered one of the new emerging departments, which was developed under the direct
guidance of the Central Bank of the country, and that bank is one of the banks that is keen to
implement global security standards for the governance of information security, cybersecurity
and the integrity of its data according to modern frameworks approved by the national Bank of
country and subject to the oversight of an accredited international observer.

The Bank seeks to provide services and consultancy

For economic projects and to support and study projects submitted by individuals within a
diversified plan that applies the policy of financial inclusion and according to the laws,
instructions and directives of the National Bank of Ethiopia.

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Information Technology

Information technology is considered today the key to the success of any institution’s work. In
the world of finance, information technology plays an important role in the success or failure of
any institution and is the backbone of the bank’s work. The bank has invested all efforts and
human Energies to build a sophisticated and modern technological infrastructure and the best
licensed electronic systems that aim at automating banking operations.

One of the finest national origins at commercial Bank is an information technology

infrastructure with high specifications and Characterized by high capacity and speed. The bank
also works on an integrated banking system that serves the needs of customers and according to
their requirements, we have a high-quality data center that includes many servers working 24/7,
high-quality monitoring systems and monitoring by dedicated security agencies, in addition to
VDI technology and high-quality protection systems that protect Servers and the network
completely and more than one level as well as users’ devices and control over all the operations
that the user performs.

2.2 Staff Establishment of the Department.

The staff has 11 number of employee and no discrimination between employees whether gender,
sex, nation, religion etc.

Staff has given work punctuality and honesty by obeying the rules. But the staff some problem,
for example less female employee and scarce of space and some from material related with
technology. The working hour of the organization is from 2:00-11:30. However if it’s not
punctual so money penalty if its first time he/she will be given a written warring and if its second
time he will be punished according to branches rules.

This number of employee are different duties and responsibility 3 employees are security guard
and two of them are male and one are female. Their responsibility is to stand out of at the office
and check the customer when they come the bank from outside. In addition they protect the bank
from other and different danger. The other of 2 employee secretary or clerks they work are shift
and their responsibility are to fill out form that are set by the customers need and given by the

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customer. The other 3 employee are banker/accountant their responsibility is to treat customer by
looking their form that the customer bring from the clerk in addition they replace old passbook
by the new one and then they attach the customers’ application form. The other one employee
are auditor and his responsibility receive the account opening form ensure the customer
signature is verified, duties audit all transaction with in the bank and the other employee
different duties and responsibility. Other one employer is customers service manager this
responsibility make sure document are genuine and acceptable by the bank. Finally one
employer are manager of the bank it is control/manage all activity of the bank.

3. MAIN ACTIVITIES DURING THE ATTACHMENTS

3.1 Students Main Objective for the Attachment Exercise
My main objective during the attachment:

 Having good understanding of bank structure, mechanism of customer handling and

getting enough information about every activities that has undertaken in bank.

 Understanding overall activities of account creation customers and data organizing

method.

 Identifying the difference between individual account and corporate account.

 Getting complete understanding of both online and manual transaction process.

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3.2 Attaches Assigned Routine Duties Departments Participation Form
 Receives the relevant document from the customer, based on the type of account that they
wants to open and the requirement set thereof, and identifies them.

 If the customer is already created as individual or corporate, initiate a modification of the

customer record if necessary.

 If the customer is created as prospect customer previously, just updating any additional
information about the customer.

 Issues an account opening application for cash/a check deposit form to be filled out by
the applicant, and guides her or him on how to fill out the opening application form.

 Issues the cash or the check deposit form to be filled out by the applicant.

4. SKILL AND EXPERIENCE

4.1 Summary of Skill Gained
There are so many things that I have learned from CBE during the attachment from the begging
to the end in terms of social interaction with coworker, work ethics and so many things which is
very important for me after graduation.

 I clearly understand the transaction process.

 I know how to manage the behavior of the customers.

 I have also got good skill and exercise on social relation between workers of the office.

 I have got more knowledge about the business activities’ that bank has undertaken.

 I understand that how to organize data.

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  I understand that how to work anything with other employee or social life in work place.

4.2 Challenges Encountered By Students

 In the begging it was difficult to adopt everything I got frustrated and I become shay for
the working environment.

 It was difficult to perform any activities because I was new or as a fresh trainee for the
entire job in the bank.

 It is not easy to communicate with my advisor and coworker because of their work
condition, level and behavior.

4.3 How to Overcome the Challenges

To overcome the challenges I did the following.

 I asked my advisor or manager to give me orientation because I have to know what I need
to do and how I have to behave.
 I start to go to the bank every day because I have to adopt the working environment and
the workers in the bank.

4.4 SWOT analysis

4.4.1 Strength:

 Good initiation to organize

 Fast services for transferring money

 Good customer service

 Availability of necessary resource like network, generator, ATM machine etc.

4.4.2 Weakness:

Some the weaknesses are as follows

 Poor management of customer.

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  Lack integrity

 Poor market area selection

 Poor network utilization insufficient working area for storing money

4.4.3 Opportunities:

The best opportunities are as follows

 Low house expense at out lay branch

 Availability of customer at out lay branch

 Experienced employees available

 There a willing customers to use the bank if they are aware enough

 Their business sector is expanding with many future opportunities for success

 Local government wants to encourage local business

 Their competitors may be slow the adopt new technologies

 Communicate and follows former foreign customers

 Communicate by phone others by collecting information from the foreign customer

4.4.4 Treats:

The following are the serious treats under considerations

 High competition among other banks

 Lack awareness of customer to use bank service

 Lack of access to get new customer at rural area

 Poor saving culture of the societies

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  Development in technology may change this market beyond their ability to adopt

 Small change in the focus of a large competitor might wipe out any market position they
achieve.

5. CONCLUSION AND RECOMMENDATION

5.1 Conclusion
Commercial bank of Ethiopia was legally reestablished since 1963.nowadays has many ranches.
I have worked my practical attachment at CBE Yirgalem agro industrial park branch. The bank
support economic development of the country by financing and providing loan service for huge
industry and business the bank is one of the leading financial institutions in the country.
Customer care service department is one of the departments structured under Commercial bank
of Ethiopia Yirgalem agro industrial park branch as a unit and perform its duties and
responsibilities by setting specific and feasible objective. Major activities performed by this
department are account opening, cash withdrawal, deposit and checker activity.

By performing this duties and responsibilities effectively and efficiently the department has its
own contribution for the success of the bank. As a staff member I have also performed some
specific activities in the bank. During my stay I have observed some problems and forwarded

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some remedial measures. This practical attachment has its own multidimensional significance in
benefiting host organization as well as universities and specially students.it shows how the real
world operates and in addition to this it also examines the capability of the student in converting
theories learned in the class. This practical attachment is very important for the university to
produce preoriented students about the real world.

5.2 Recommendation
I have some points to recommend on this practical attachment as agricultural economics student.
Know a day there are several private banks in the country so the competition is too strong. And
to become a winner of such competition I recommend the ff.

 CBE has to focus on the quality of service that is given to the customer instead of
controlling the market or banking business by adding too many braches.
 To get many customer the number of branch is mandatory but the quality and
modernization of service is also the most essential things which means if you give the
better service you will get many customer and it’s possible to minimize the expense that
has gone for the labor.
 Still now CBE has too many account holders and above 1000 branches. Since banks are
giving the saving service the organization should have to encourage and teach the society
about saving. In compered to peoples living in towns and cities with that of countryside
residents they are more familiar to banking services. So just including peoples living in
countryside would be better for banks necessary for the development of the country and
the economy of people.

 Related with Yirgalem agro industrial park branch there is a problem related with electric
power which affects the quality of service given to customers and its great business area
selection but with the poor management system and poor manufacturing process of
Industry Park make the bank nonfunctional and customer less.

Finally in this practical attachment I can able the see may self as worker and realize my strength
and weakness, and also I get a lot of experience and knowledge in social and banking business
activity.

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 REFERENCE
https://www.combanketh.et/en/about/ Commercial Bank of Ethiopia - Wikipedia

https://www.cbe-tunnels.com/en/company/departments.html www.cbe.pt/doc_externo.aspx?

param=6xaQnimFh6TUGczg8rpu2Zpy6mpcDcrLe2N/uVk2zInR

HyPVF1Gnnges5qkgdg55Jz3KqdpDb5k=

https://combanketh.et/en/organizational-structure/ cbegroup.com/an/expertise/organizational-

structures/ https://aaoifi.com/?lang=en

https://corporatefinanceinstitute.com/resources/career/what-is-a-ceo-chief-executive-officer/

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