JIMMA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF BANKING AND FINANCE

PRACTICAL ATTACHMENT IN COMMERCIAL BANK OF ETHIOPIA

(BUEE BRANCH)

PREPARED BY,ADONIYAS BELAYNEH........RU 3488/12

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MAY,2023
JIMMA ETHIOPIA

ABSTRACRT

Generally, the objective of this practical attachment is to assess the performance of Commercial
bank of Ethiopia buee branch. The extent to which commercial Bank of Ethiopia buee branch’s
is realizing its vision and mission and performance of the organization in relation to its
objectives. The intention of this practical attachment was to increase student’s knowledge and
enable student to compare what have learnt so far in class and what have experienced in
summer practical. To produce well qualified, self-reliant, active, change agent and real problem
solver student. In addition, the other objective is to investigate equal participation of
commercial Bank of Ethiopia with other bank to it realizes to its visions, mission and objective.
Not only limited to this but also emphasis the problems faced by ourselves while we was
performing this practical attachment. Thus, practical attachment suggests solutions and some of
policy implication toward reducing the problems based on finding.

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Acknowledgement
First of all our deepest thanks goes to GOD for his endless help and make we to stay in life to
this day and enables we to complete our activities internship. we also would like to express our
deepest gratitude to GOD. we also thanks manager for his enthusiastic support from the
preparation until the final discussion of this internship with frequent follow up of our activities
and for his guiding. we also greatly thanks for our family they had been assisted our schooling
life and to give advice how can we goes with our planning activity to finish our academic
schooling in this university. Finally, we would like to acknowledge all individual and institutions
that have helped we materially and morally during the preparation of this paper.

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Contents
ABSTRACT.....................................................................................................................................i

Acknowledgement...........................................................................................................................ii

AKRONOMY..................................................................................................................................v

CHAPTER ONE: INTRODUCTION..............................................................................................1

1.1 Background of the Commercial Bank of Ethiopia....................................................................1

1.2 Ownership, nature or type of the organization..........................................................................2

1.3 Mission, Values, Vision and Objectives of the Commercial Bank of Ethiopia.......................2

1.3.1 Mission...................................................................................................................................2

1.3.2 Values.....................................................................................................................................3

1.3.3 Vision and Objectives of CBE................................................................................................4

1.4 The Governance and organizational structure of CBE..............................................................4

CHAPTER TWO: SWOT ANALYSIS OF CBE...........................................................................6

2.1. Strength of CBE-......................................................................................................................6

2.2. Weakness..................................................................................................................................6

2.3. Opportunities............................................................................................................................7

2.4. Threats......................................................................................................................................7

2.5. Challenges & Problems of CBE...............................................................................................7

2.5.1 Inflation..................................................................................................................................7

2.5.2 Low infrastructure in the country...........................................................................................8

2.5.3. Lack of awareness on the bank products and services by the society...................................8

2.5.4. Competition from other Bank................................................................................................8

CHAPTER THREE: ACTIVITY UNDERTAKEN DURING INTERNSHIP.............................10

3.1 Background of the department/division where you working..................................................10

3.2.Objectives and major responsibilities as well as activities of the department Or division......10

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3.2.1 Objective of the department..................................................................................................10

3.3 objective and major responsibilities as well as activities of the department /division............11

3.3.1 Account opening...................................................................................................................11

3.3.2 Duties related to customer service........................................................................................11

3.3.3 Telegram...............................................................................................................................12

3.4 The responsibilities and major activities we as a member of department...............................12

3.5 Performance Evaluation of our activities................................................................................13

3.6 Challenges and Problems encountered on the job and remedial Measures.......................13

3.7 Problem of division or department and suggested solutions...................................................14

3.8. Attachment Evaluation...........................................................................................................15

3.8.1 Significance of Practical Attachment...................................................................................15

3.8.2.Relevance of Practical Attachment to our studies................................................................15

3.8.3. Applicability of theories and others in class on Practical Work..........................................16

3.8.4. Major Challenges and Problems that we faced during Practical Attachment.....................16

CHAPTER FOUR Conclusion and Recommendation..................................................................17

4.1 Summary of the Attachment....................................................................................................17

4.2 Conclusion...............................................................................................................................18

4.3 Recommendation.....................................................................................................................18

4.4 References................................................................................................................................19

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AKRONOMY

CBE (COMERCIAL BANK OF ETHIOPIA )

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CHAPTER ONE: INTRODUCTION

1.1 Background of the Commercial Bank of Ethiopia

Commercial Bank of Ethiopia was established in 1942 and it was legally established as a share
company in 1963. In 1974, CBE merged with the privately owned Addis Ababa Bank. Since then
it has playing significant roles in the development of the country.

It has more than 1,616 branches stretched across the country and has opened four branches in
South Sudan. Currently CBE has more than 25 million account holders and the number of mobile
banking and internet banking subscriber’s reached more than 1.1 million. Similarly the number
of card holders has reached 2.8 million as of June 30th 2016.

It has pioneer to introduce modern banking to the country and the first bank to introduce
Automatic Teller Machine (ATM) services for local users.

CBE also is pioneer to introduce Western Union Money Transfer services early 1990’s and
currently working with other 20 money transfer agents like Xpress Money, Money Gram
Dehabishil etc. The bank has strong relationship with 50 renowned foreign banks and has a
SWIFT bilateral arrangement with more than 700 other banks across the world.

Currently CBE has merged with construction and Business bank and increased its market size
and capital.

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 1.2 Ownership, nature or type of the organization
The Commercial Bank of Ethiopia (CBE) is the largest state-owned commercial bank in
Ethiopia, with US$6 billion assets. It was established in 1942 by the occupying Italian forces and
became a state-owned bank after liberate from Italy. CBE provides services such as banking and
financial operations, investments, advisory services, asset management and merchant banking.
CBE provides basic banking services to retail customers as well as corporate customers. These
include deposits, payments, lending, remittances and foreign exchange transactions. In addition
to its traditional banking services, CBE's other important financial instruments include
participation deposits, which give the depositor partial ownership in some of the Bank's projects;
e-banking allowing customers to pay money without cash; open market operations enabling the
Bank to control liquidity through sopping and releasing reserves; auctions for bills of exchange
and term deposits; documentary credits allowing importers to pre-pay suppliers/exporters;
Letters of credit allowing exporters to receive payment on delivery; electronic money transfer
system providing quick payments; early warning systems providing timely reporting on credit
risk related issues; trade financing support on export/import activities etc. Furthermore, based on
agreements with regional governments and multilateral organizations CBE offers various kinds
of insurance activities such as marine transport insurance for goods exported from or imported to
Ethiopia or reinsured abroad etc. Overall its mission is to provide competitive financial products
and efficient customer service through modern technology while adhering the highest quality
standards in support of the Ethiopian economy’s development goals. Its primary focus are those
sectors critical for economic development namely agriculture, industry and trade finance
activities like granting loans & advances , overdrafts & discounts etc. Providing specialized
banking services throughout its more than 1.800 domestic branches spread over 33 regional
states with an international branch at Djibouti are also major goals set by CBE .

1.3 Mission, Values, Vision and Objectives of the Commercial Bank

of Ethiopia

1.3.1 Mission
The bank highly committed to best realize stakeholders values through enhanced financial
intermediation globally owned and supporting national development priorities, by developing

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highly motivated, skilled and disciplined employees as well as state of the art technology. We
strongly believe that winning public confidence is the basis of our success.

1.3.2 Values

The following are values of the bank

• Integrity

-we are committed to the highest ideals of honor and integrity

-we strive to act in an honest and trustworthy manner
-we firmly adhere to ethical principles
• Customer Satisfaction
-we strive to excel our business and satisfy our customers
-we are committed to offer the highest quality service to our customers and aspire to be branded
with quality in the minds of our customers and the general public
• Employee satisfaction
-we are committed to employee training and professional growth
-we distinguish our employees as valuable organizational resources
-we recognize our employees for their achievements
• Learning organization
-we are committed to anticipate and respond to internal and external changes through constant
improvement and adaptation
-we strive to establish a culture that nurtures individual and group learning
• Teamwork and collaboration
-we recognize the importance of teamwork for our success
-we support one another and work co-operatively
• Public trust
-we understand that the sustainability of our business depends on our ability to maintain and
buildup public confidence
• Value for money

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-we use resources carefully to save expense, time or effort

-we deliver the same level of service for less cost, time or effort
-we deliver a better service or getting a better return for the same amount of expense, time or
effort
• Decentralization
-we are committed to delegate operations and decision-making responsibilities
• Corporate citizenship
-we value the importance of our role in national development endeavors
-we abide by the laws of Ethiopia and other countries in which we do business
-we care about the welfare of the society and the environment

1.3.3 Vision and Objectives of CBE

The vision of the bank is to become a World-Class Bank by the year 2025.

Objectives of CBE are:-

• To contribute to the general economic development efforts of nation

• Enhance growing market share

• Expanding the bank’s capital base

• Ensuring excellence in customer services

• Provde differentiated, varied and value added banking services ,

Maximizing profitability through increased efficiency

Increasing employee satisfaction and developing their skill

1.4 The Governance and organizational structure of CBE

All departments in this organization are related to each other. The other department can control
the activity of other. Also on their daily activities they must report to the body which controls
each department. Also they control each other to minimize the problem on job to be fair and
acceptable by every department. To achieve the objective and vision they obey responsibility for
the job given to all departments.

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CHAPTER TWO: SWOT ANALYSIS OF CBE

Like any financial organizations Commercial bank of Ethiopia can also be affected by changing
environment. Therefore, it is necessary to know SWOT analysis of the bank. It provides a
strategic SWOT analysis of the bank business and operations. The following are some of the
SWOT analysis of CBE:-

2.1. Strength of CBE-

• Secure and reliable services tailored to meet customers’ needs;

• It gives priority to public interest ;

• Over 60,000 committed, skilled and experienced employees
• Strong management-it can help CBE reach its potential by utilizing strengths and eliminating
weakness;
• Decentralized working environment
• Innovative Culture: it helps CBE to produce unique products and services that meet their
customers need ;
• Size advantages: it lowers CBE’s risk’s, the larger CBE gets, the more resources they have to
pursue new markets and defend themselves;
• Economies of Scale: it is the cost advantages that CBE obtains due to size, the greater the
volume, the greater the advantages;
• Technology: superior technology allows CBE to better meet the needs of their customer’s in
ways that competitors can’t imitate;
• Customer loyalty

2.2. Weakness: -

• competitive market

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• investment in research & development
• low salary compared with many private bank
• presence of offline branches

2.3. Opportunities:-

• income level is at a constant increase

• Population growth
• New products and Services:-
• growing economy
• New Technology
• Vision to become World Class Commercial Bank in 2025

2.4. Threats:-

• increase in labor costs

• growing competition
• external business risks

2.5. Challenges & Problems of CBE

Like any financial organizations, CBE has faces various challenges in its day to activities and in
its strategic action. The following are among the problems that faces CBE at current time

2.5.1 Inflation
Since recent times inflation has become the main global and domestic economic challenge.
Before the 2008 global financial crisis there was also inflation and as the economies of Asian
countries like China and India grew at a faster rate the demands for raw materials rose, and it
was mainly caused by international demand hikes. But after the crisis many developed countries
followed the policy of financial easing and released their currencies in to the global economy.
And increase in the money supply has created a massive global inflation and that is felt here in
Ethiopia.

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For CBE the high rate of inflation has serious implication. Since it gives loans at a fixed rate of
interest as inflation rises their profit margin will be diminished. And as for a long period of time
the rate of inflation is higher than the deposit saving interest rate, the depositors will be less
motivated to deposit their money in a bank.

2.5.2 Low infrastructure in the country

Absence of basic infrastructure in the country hinders the bank not to provide modern banking
services to the society. The following are some of challenges of CBE related with poor
infrastructural facility of the country:

• Low telecommunication infrastructure-absence of modern telecommunication infrastructure

especially in peripheral part of the country hinders the bank to Provide modern bank services to
the society. In addition to that frequent failure of network creates customer dissatisfaction of the
bank. Even though CBE introduces some modern banking service like ATM, Visa cards, mobile
and internet banking in capital city and in some regional cities, majority of the society missed to
enjoy with the technological advancement which has been entertained elsewhere in Africa and
the rest of the world due to the absence of infrastructural facilities.

• Lack of road’s creates rural society not to use bank

• Frequent Electric power Failure

2.5.3. Lack of awareness on the bank products and services by the

society
Even though the number of customers that used bank increased periodically, majority of the
society of our country has no awareness on bank products and services.

2.5.4. Competition from other Bank

There are many other bank that compete with CBE. They always provide new products and
service to their customers and their service excellence increases from time to time. In addition to
that private banks provide credit service to private sector and CBE gives priority to provide
credit service to government & sectors that have impact on national economic development.

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As CBE planned to become world class bank in 2025 it apply various approaches to solve or
minimize its problem & challenge in order to achieve its goals. It provides financial support to
government in order to minimize poor infrastructural facility like telecommunication and electric
power supply.

CBE also used various methods to create awareness and to increase its customer base. It used
Door to door, browser, various TV, and Radio channels, discussion with stakeholders and other
methods to create awareness on bank products and services to the society.

CBE also introduces new and modern technology to its customer periodically. The users of
modern banking services increasing from time to time and the number of branches opened across
the country reached more than 1616 now.

Today, more than ever before, CBE aggressively expanded its presence in all directions of the
country. Despite the flourishing of other private commercial banks in the country, CBE has
remained potent and is in the lead in terms of assets, deposits, capital, and customer’s base.

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CHAPTER THREE: ACTIVITY UNDERTAKEN DURING
INTERNSHIP

3.1 Background of the department/division where you working

The commercial bank of Ethiopia (CBE) konel branch was located on DIRE DAWA . And the
bank was established during the year 1990.

During the year of establishment the CBE konel branch started by more than 10 employees,
including the branch manager, now the branch has more than 22 employees.

The CBE konel branch employees are performing their activities effectively and honestly.

Customer service officer department is one of the sectors of commercial bank of Ethiopia konel
branch. It performs its duties and responsibility by setting specific and feasible goals and
objectives which support to speed up customer satisfaction and profit Maximization of the bank.

3.2.Objectives and major responsibilities as well as activities of the

department Or division

3.2.1 Objective of the department

● To ensure standardization and uniformity in the customer service process.

● To smoothly implement integrated banking solutions in customer service process.

● To have single source of reference to perform.

● To determine duties and responsibilities that each employee at all level in the

customer service process.

● To provide efficient and quality service to its customers.

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 3.3 objective and major responsibilities as well as activities of the
department /division

3.3.1 Account opening

There are many types of accounts those are:-

● Saving account – is interest bearing deposit opened by legal and physical person s,
organization and association.

● Demand deposit account – shall mean an interest bearing account opened only

by customers who are literate.

● Special demand account – means a non interest bearing account that is opened to full fill the
request of customer who for one not wants interest for their deposit.

● Fixed time deposits – a type of account deposit is received at certain period of time without
movement a minimum of three month and attracts higher interest rate han others.

● Earmarked account – means account opened with other description after the name of the
account holders such as club, business and work shop account.

3.3.2 Duties related to customer service

Opening account

Pay cash& receive cash

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3.3.3 Telegram
That means send outgoing message and receive incoming message from other branch.

3.4 The responsibilities and major activities we as a member of

department
As department member we also have the responsibilities of performing the activities of the
department. Based on those general activities, we perform the following specific activities as an
apprentice, when we was participating at commercial Bank of Ethiopia konel branch.

● we opened account for more than 100 customers by supporting employees

● we check the name, date and signature of the customer to be filled properly.

● we participated in different writing and typing activities that help for customer

service.

● we accomplish a given work punctual and honestly by obeying the rules and regulation of the
organization.

● Protecting the office resource from damage.

● we gave different service for department and customers.

● we fill different forms by helping customers.

3.5 Performance Evaluation of our activities

From the first day that we have started practical work on Customer service department;

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 we could understand how to deliver bank service to customers.

● we could understand the different type of communications in the organization at all.

● we have good communication with others at work place.

● To ask necessary data we could communicate with our manager from time to

time etc…

3.6 Challenges and Problems encountered on the job and remedial

Measures
As we are new for the job we have faced various challenges during the practical work. Some of
the problems that encountered we during the practical work time are summarized

below:-

Low knowledge about the office manner of the bank: - at the beginning time of the practical
work we have a little knowledge of the manner of the bank like wearing & working time.

Low knowledge about the work flow/process of the bank

Low knowledge about the function of office materials/equipment

Low knowledge about the rules & directives of the bank

Low skills about the customer handling of the branch

In order to overcome the above problems we was took various actions. Some of the actions that
we took to overcome the challenges are:-

By reading and understanding various documents like various Memo and Manuals related with
the bank workflow/process.

By asking senior staffs and manager / supervisory about the workflow, office manner, and
related issues

By reading various books and materials from other sources

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Induction from manager/supervisor about the workflow, office manner and customer handling .

3.7 Problem of division or department and suggested solutions

The major problems that face the department are the following..

■ there is a big internet connection problem or network problem.

■ there is inefficiency of some materials like chair, table and so on.

■ Some workers have problems on their behavior and didn't give proper service to

Customer.

Suggested solutions for the problems

■ Asking concerned body to get enough networks that help to provide proper

service for customer.

■ To solve the problems of inefficiency of materials by asking additional budget for the
department and purchasing this materials and make available for the

Department

■ The office should have hire authors employees as additional.

3.8. Attachment Evaluation

Practical attachment is an essential for the development of the practical and professional skills
required for a real work and an aid to prospective employment. It helps students the opportunity
to apply knowledge in real work, exposing students to work methods not taught in the university
and as well as assessing students interest in the occupation he/she plans to undertake. In addition

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to that it enables to know theories and principles I have learned in a class practically. Therefore,
practical attachment has paramount benefits to our study and to our future career in the field.

3.8.1 Significance of Practical Attachment

There are a lot of significant of practical attachments for the students, university and for society.
Some of the significances are listed below:-
• Practical attachment gives students the opportunity to apply the knowledge and skill they have
acquired on campus in a real-life work situation.
• It enables student to be familiar with practical work when they complete their academic year;
• It develops student’s research making skill.
• It develops student’s skill to solve challenges or problem that they faced during academic year
or their practical work;
• It enables employers to recruit graduates familiarized with practical work
• It enhances employability skills of the students.
• It helps students’ to develop decision making skills, critical thinking skills, increased
confidence and self-esteem.

3.8.2.Relevance of Practical Attachment to our studies

We have acquired a lot of benefits from practical attachment to our studies. Some of the
relevance’s of practical attachment are stated below:-
• Many operational part of the bank are related with theoretical knowledge that we acquired
from our study's, so it enables we to develop our theoretical knowledge with practical skill;
• It helps we to apply knowledge we gained in the classroom;
• Practical work enables we to narrow the gap between theoretical knowledge and practical skills
related with our study's
• It enhances learning and understanding of issues relevant to a particular area of study;

3.8.3. Applicability of theories and others in class on Practical Work

Many of the theories that we learned in the class are directly or indirectly related with practical
work that we observed. Let us see some of the theories applied in the work place.

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◆ Principle of marketing used to identifying customers need and want.
◆ Consumer behaviour used to know customers behaviour.
◆ Civic and ethical education used to respect bank rules and regulations.
Example: punctuality.

3.8.4. Major Challenges and Problems that we faced during

Practical Attachment
There are a lot of problems that we faced during our practical attachment.
• Time constraint- the duration is not enough to cover all work processes.
• Budget constraint- the budget provided by university is not sufficient to cover attachment cost
• The linkage between university and the organization that we conducted practical attachment is
not strong
In order to overcome the above problems the following action should be considered:-
• The practical work duration should be increases
• The university should increase budget for practical attachment
• The university should be actively involved in assisting students in getting organizations where
they conduct their attachment

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CHAPTER FOUR Conclusion and Recommendation

This part summarizes the findings, discusses the conclusions drawn from the study, and provides
recommendations.

4.1 Summary of the Attachment

The main objectives of this practical attachment was to give students the opportunity
To apply the knowledge and skills they have acquired on campus in a real-life work situation, to
expose students to a work environment, common practices, employment opportunities and work
ethics in their relevant field, to strength linkages between university and employers, and to
identify challenges and problems that students will face on the job after they complete their
academic life.
Organizational background, its mission, vision and values, organizational structure, SWOT
analysis, and various challenges and problems that affect organization at current time of CBE has
investigated in the attachment.

CBE has largest commercial bank in the country and it has huge capital, skilled manpower and
more than 1616 branches stretched across the country. The organization has the capacity and
willingness to contribute to economic growth of the country by mobilizing resources of the
country.
Various challenges and problems that faced organization in general and CBE konel branch
particularly in current time has investigated. Some of the challenges of CBE that indicated above
are inflation, lack of infrastructures, lack of awareness about the banks product and service and
competitive environment. In addition to that big internet connection/network problem and
inefficiency of materials are the major challenges of CBE konel branch.

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4.2 Conclusion
The attachment ascertains that creating strong relation between university and employers has
great advantages for students, university and generally for the society. Many Ethiopian higher
education institutions do not create practical attachment chance for their students. Rather they
focused on teaching theoretical part and that creates challenge for the students in their
employment after they complete academic life.
On the other hand many challenges and problems observed in the organizations where the
practical attachment was conducted and knowing challenges and problems of organizations may
develop problem solving skill of the students. Therefore, conducting practical attachment is
important for students, university, employers and for society generally.

4.3 Recommendation
Based on the findings of the practical attachment, the following are recommended for the
concerned organs:-
• The university should increase duration time of the practical attachment;
• Service excellence is useful for CBE to compete with private banks. The bank should expand
modern banking service specially E-banking service to its customer;
• CBE should give due attention for research and development;
• CBE should take action to mobilize and collect resources from growing economy of the
country;
• The university should provide adequate budget for practical attachment;
• The university should strength linkages with organizations where the attachment conducted;
• The university should give orientation/induction about practical attachment to their students. It
enables students to become pre-oriented about practical work environment.

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• Like other private bank CBE should pay better salary to its employee due to employee
satisfaction is one among the values of the bank, in addition to that better salary may reduce
skilled and experienced employee flow to private bank.

4.4 References
● some oral information from employees

● Information from written documents of organization

● direct information from the supervisor of the organization

● From employees of organization

● Some from daily activities

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