COMMERCIAL BANK OF ETHIOPIA 18 ADEBABAY BRANCH

HARAMAYA UNIVERSITY

COLLEGE OF BUSINESS AND

ECONOMICS
INTERNSHIP HOSTING COMPANY:
COMMERCIAL BANK OF
ETHIOPIA
18 ADEBABAY BRANCH
Practical attachment REPORT
REPORTED BY: RAHEL FUJE
ID NO:-1107/12
SECTION-B
OCTOBER , 2022

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ABSTRACT
Generally, the objective of this practical attachment is to assess the performance of
commercial bank of Ethiopia 18 branch. The extent to which CBE 18 Branches is
realizing their vision, mission and performance of the organization in relation to
their objective and the intention of summer 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 CBE Bank with other bank.
Not only limited to this but also emphasis the problems faced by me while I was
performing summer practical attachment. Thus, practical attachment suggests
solutions and some of policy implication toward reducing the problems based on
finding.

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ACKNOWLEDGEMENT
Before anything I would like give my heart full honor and glory to the almighty
God for his endless help and make me to stay in life to this day and enables me to
complete my internship. Next I would like to express my deep and sincere
gratitude to my instructor Ararsa A. for his enthusiasm dedication and guidance
through my paper I really appreciated his valuable advice that he has given to me.
Next special thanks are also extended to manager of CBE in 18 Adebabay Branch
for his willingness of giving me any necessary information during my data
collection. Next I would like to express my deepest gratitude to my family they
untiringly have given me great moral and financial assistance from the beginning
to end. Also I would like thanks to Haramaya university in general collage of
business and economics for given me this opportunity which may have a
considerable contribution to my future responsibility carrier . Finally I would like
thank all my teachers, my class students and my close friends.

Contents

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ABSTRACT....................................................................................................................................................ii

ACKNOWLEDGEMENT.................................................................................................................................iii

1. INTRODUCTION.......................................................................................................................................1

1.1 Back ground of the organization........................................................................................................1

1.2 CARDINAL ISSUES (Mission, vision and objective).............................................................................2

1.2.1 Vision of the organization...........................................................................................................2

1.2.2 Mission of the organization........................................................................................................2

1.2.3 Objectives of the organization....................................................................................................2

1.3 The type of operation of a business...................................................................................................2

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

2. THE RESPONSIBILITIES OF ME AS A MEMBER OF DEPARTMENT.............................................................6

2.1 Performance Evaluation of my activities...........................................................................................6

2.2 Relevance of organization with my study..........................................................................................7

3. APPLICABILITY OF THE THEORIES AND OTHER IN CLASS ON THE REAL WORLD OR PRACTICAL WORK
ENVIRONMENT............................................................................................................................................7

4. STRENGTH, WEAKNESS, OPPORTUNITY AND TREAT (SWOT) ANALYSIS OF THE ORGANIZATION..........8

4.1 Strength of the organization..............................................................................................................8

4.2 Weakness of the organization.........................................................................................................10

4.3 Opportunity of the organization......................................................................................................12

4.4 Treat of the organization.................................................................................................................12

5. PROBLEMS ENCOUNTERED ON THE JOB AND REMEDIAL MEASURES...................................................13

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5.1 problems observed that affect the organizational at current time and its critical issues in
commercial Bank of 18 Adebabay Branch.............................................................................................13

6. SUGGESTED SOLUTION (MEASURE) TAKEN TO SOLVE OR AT LEAST MINIMIZE PROBLEMS..................14

7. CONCLUSION AND RECOMMENDATION................................................................................................15

7.1 Conclusion.......................................................................................................................................15

7.2 Recommendation............................................................................................................................16

REFERENCE................................................................................................................................................17

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1. INTRODUCTION
1.1 Back ground of the organization

The history of the Commercial Bank of Ethiopia (CBE) dates back to the establishment of the
State Bank of Ethiopia in 1942. CBE was legally established as a share company in 1963. In
1974, CBE merged with the privately owned Addis Ababa Bank. Since then, it has been playing
significant roles in the development of the country. Currently CBE has more than 35 million
account holders in its more than 1824 branches and the number of Mobile and Internet Banking
users also reached more than 5.5 million as of June 30, 2022. Active ATM card holders reached
more than 7.7 million.

CBE played a significant role as both the engine of the country’s economic growth and
mobilizing savings for further investment. In its effort in being part of the solution for the
environmental degradation and its subsequent impact on individual citizens and businesses, CBE
has the capacity to reach out to millions in both increasing awareness and building adaptive
capacity through providing environmentally friendly credit lines. Since then, CBE has gone
through different reforms and mergers coming out as one of the most reputable and biggest
commercial banks in the country.

Among the branches of the bank, 18 Adebabay is one of the newly opened branches which were
established on March 22, 2016. As the time of its establishment it has twelve (12) total staff. 18
Adebabay Branch is located near to Torhayloch in Addis Ababa. Currently the organization has
18 employees and also having different staff professional and from 2016 till now it had 4
managers. Out of staffs five are females and the others are male. Among those employees 10 has
bachelor degree and the rest are security guards and messengers.

The Economics of Banking provides an accessible overview of banking theory and practice. It
introduces readers to the building blocks of fundamental theories. It is also the primary supplier
of credit.

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1.2 CARDINAL ISSUES (Mission, vision and objective)

1.2.1 Vision of the organization

 Attracting deposits and developing them, in order to achieve the best financial return for
shareholders, depositors and to be the first choice.

1.2.2 Mission of the organization

 To provide Innovative, Competitive and Diversified banking services accessible to the
society with qualified and committed staff in a profitable and socially responsible
manner.

1.2.3 Objectives of the organization

The main objectives and functions of the CBE 18 branch are as follows:

 To implement management information system

 To maximize customer satisfaction

 To develop competence with other private banks

 To build change for all bank staffs

 To establish performance base incentives

 To deposit mobilization service

 To enhance and facilitate the development of the country

 To maximize profit of the bank by creating difference.

1.3 The type of operation of a business

Banks provide financial and advisory services to small and medium businesses as well as
larger corporations. These services are tailored to the specific needs of each business. CBE
is a pioneering bank in introducing and expanding banking services in Ethiopia. It has played
a tremendous role in the development of the country by utilizing state-of-the-art technologies

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and implementing improved working systems to provide modern and full-fledged banking
services.

Each department of the organization has their own duties and responsibilities. Manager is
responsible to supervise all activities in bank including supervising employees, assisting
customers and providing excellent customer service. Cashier is responsible to all cash
transaction of the organization, checking daily cash accounts, and maintaining monthly,
weekly and daily report of transaction.

Accountant is responsible to assists during preparation of financial statements. The

statements prepared include the balance sheet, income statement, a statement of retained
earnings and cash flow statement.. The accountant also holds the responsibility of closing the
books of accounts of a branch at the end of every month. In case mistakes occur, he/she is
prepares and post the adjustment entries.

Customer service officer is responsible for banks answer customer questions about basic
banking services, such as account balances and interest rates and fees. Resource Manager is
someone who is just responsible to open account numbers, organize and direct employees of
the bank to open an account numbers.

In general, this bank is responsible to deliver service to its customer by Acceptance of

Deposits, Lending of Funds, Clearing of Cheques, Remittance of Funds, Lockers & Safe
Deposits, Bill Payment Services, Online Banking, and Credit & Debit Cards.

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1.4 Organizational Structure

How the organization is organized to achieve objectives and mission?

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. Let we see to how 18 Adebabay branch of CBE control each
other;

The customer service officer reports the daily activity to the A/senior customer service officer.
Also pass all physical tickets done on transaction daily to the branch controller to ensure their
activity by comparing the recorded transaction on the system. A/senior customer service reports
his or her activity to the customer service manager. Customer service manager reports to branch
manager. Branch controller passes all tickets to senior branch controller after ensured the balance
on physical counted tickets and on system became equal. Then senior branch controller again
checks and report to branch manager.

The CBE 18 Adebabay branch was well organized to realize its cardinal issues. It improves
banking service from time to time and innovate new technology to give satisfaction for customer.
Workers of the organization are accountable to their customer. So finally all activity in bank is
controlled by the manager of the bank Organizational structure is the most important part for
office to achieve its objectives and mission.

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Fig 1.4 CBE Structure of the Division

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2. THE RESPONSIBILITIES OF ME AS A MEMBER

OF DEPARTMENT
As department member I also have the responsibilities of performing the activities of the
department. Based on those general activities, I perform the following specific activities as an
apprentice, when I was participating at CBE 18 Adebabay branch.

 I opened account for more than 40 customers by supporting employees

 I check the name, date and signature of the customer to be filled properly.

 I participated in different writing and typing activities that help for customer service.

 I accomplish a given work punctual and honestly by obeying the rules and regulation of
the organization.

 Protecting the office resource from damage.

 I gave different service for department and customers.

 I fill different forms by helping customers.

2.1 Performance Evaluation of my activities

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

 I could understand how to deliver bank service to customers.

 I could understand the different type of communications in the organization at all.

 I have good communication with others at work place.

 To ask necessary data I could communicate with my manager from time to time etc.

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2.2 Relevance of organization with my study

From starting date of my practical attachment as the general with the branch and particularly
with the department there is good connection with my study in foreign remittance transaction.
Theoretically since I have studied about foreign remittance in class and in my practical study
how to make transaction of that remittance this organization is relevant with my practical study.

In other way as general as organization there is also good connection with my study that for that
foreign transaction is the department of the organization and my study is related with it that has
relation with Economics again the organization and my study has good connection. Especially it
relate with financial economics, international economics accounting, macroeconomics and
microeconomics according to transaction part and others.

3. APPLICABILITY OF THE THEORIES AND

OTHER IN CLASS ON THE REAL WORLD OR
PRACTICAL WORK ENVIRONMENT
Applicability of theories in practical work environment is very interesting and important. In
economics field there are many theories that applied on real world. Some theories which are
applicable when I conduct this practical attachment are the following.

 The main activity of bank is accepting, depositing and lending money to its customers
which really related to banking and insurance course.

 The theories of microeconomics for showing how to maximize profit and creating
customer satisfaction.

 The theories of principle accounting used to prepare workers payroll.

 The theories of international economics (trade) used to show exchange of currency.

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4. STRENGTH, WEAKNESS, OPPORTUNITY AND

TREAT (SWOT) ANALYSIS OF THE
ORGANIZATION
SWOT analysis is an important analysis for any organization. Managers usually use this analysis
to check the strengths and weakness of the organization and its present resources. In addition to
the strengths and weaknesses SWOT analysis also provides insight to the outside opportunities
and threats to the business setup so the managers can capitalize on the opportunities through their
internal strengths and can avoid threats by improving or covering their weaknesses.

Large commercial bank has its strength and weakness to consider before applying and using its
services. While most commercial banks are easy to use and convenient because of the many
public services and products provided, there are some drawbacks like long waiting lines, call
centers and confusing answers.

There is a big problem with large commercial banks, especially ones that are large enough that
they have over 10+ physical locations. The larger a company grows, so do the problems and
client lists. In this SWOT analysis, we are going to take a peek at the strengths and opportunities
that the banking industry can take advantage of. We’ll also look at the weaknesses that the
industry suffers from, and the threats that may seek to spend it in the near future.

Since there are so many customers, when a problem goes wrong, all these same clients run to
their phones to schedule appointments or speak to a representative. Usually, large businesses and
banks use international call centers, which can be frustrating and hard to understand even they
are expensive, especially to leave. Be careful if you are considering closing your bank account.
There may be hidden fees you have to pay to exit the services and maintain the account.

4.1 Strength of the organization.

1. The operation of commercial banks encourages savings.

They provide facilities for saving. People could therefore save money. This function of the
banks helps individuals find the temptation of spending money extravagantly, mobilize capital

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which can then be lent to investors. Although, money saved in banks are not regarded as
investment, but then, it yields some interests to the savings fixed deposits and other forms of
savings account holders. They therefore encourage capital accumulation which helps to scale up
economic advancement.

2. Safe Keeping of Public Wealth

Without commercial banks, people will be pilling up money in their homes. Before the advent of
banks, people used to keep their moneys in containers, under their beds and pillows, bury
beneath the soil, in grain stock etc. There were records of incidents of moneys being stolen, eaten
up by rodents and termites. Keeping money at home in this modern time, will lead to high rate of
theft and robbery.

3. Provision of Loans

Commercial banks give out loans and advances thereby providing short-term and medium-term
capital for businesses. The loans and advances may be in the form of direct loans, overdrafts, or
by the discounting of bills. With the amount borrowed, the investors could finance various
projects in the areas of industry, agriculture, and commerce. This therefore helps in modern
economy. Raising capital through bank loan is easier than raising capital at the capital market,
which has along protocol, high qualification requirements and high cost of raising capital.

4. Financial Prudence Advice

They give financial, technical, and management advice to their customers in matter relating to
investment. They advise their business customers on how best they can carry out their business
operations. They advise investors on the various ways of raising finance for investment purposes.
The managers of businesses, who are customers to a bank, can get management advice.

5. Facilitation of Business Transactions and Payments

Commercial banks facilitate business transactions by making the use of cheques, bank drafts
online transfer possible. Traders and individuals who handle plenty money therefore find it easier
and safer to carry a large amount of money in the form cheques, bank drafts, ATM cards, online

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wallet from one place to another. The money lost by businessmen and investors is thereby
reduced.

6. Facilitation of Global Trade

They facilitate international trade and travel by making foreign exchange transactions easier.
They help in making overseas payments for their customers. They also assist in international
trade by issuing letters of credit to importers and providing travellers' cheques to overseas
travellers.

7. Reference

Banks act as referees as to the integrity and financial standing of their customers. Local investors
who want to go into partnership with foreign investors could obtain references from bankers.
Investment opportunities can therefore be created within an economy. This speeds up economic
progress.

8. Conversion of Digital currency

There has been proliferation of digital assets, which are held electronically. Commercial banks
still facilitate the transaction settlements of these cryptocurrencies. People who hold digital
assets may wish to convert their digital currencies to fiat currencies, commercial banks facilitate
the transfer and conversion.

In general in this internship deserve these strengths;

 Respecting the law of the organization.

 Good efficiency and ethical conduct of staffs

 It gives training for its employees to improve their profession.

 It gives excellence service for its customer which most of its customers get
satisfaction in proper manner.

 They respect each other and also they give priority for their work

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4.2 Weakness of the organization

1. Leakages

There may be some leakages in the banks systems which may be caused by over blotted costs by
the banks management, bank staff tampering with customers’ deposits, bad loans etc.

2. Risk of Robbery and Fraud

Piling up cash in publicly known places like banks can attract robbers. There has been prevalent
cases of robbers breaking in the banks and empty the vaults. The increase in internet banking in
recent times has as well led to increase in cybercrime. Commercial banks customers are now
exposed to criminal attacks in through stolen ATM cards, passwords, hacking of accounts, etc.

There have been robberies where robbers have stolen millions of dollars through the internet,
without physically entering the bank premises. With the rise in internet banking, fraudsters now
device more innovative ways to swindle and rob people off their money. Commercial banks are
investing heavily on their internet and database infrastructure to wall off cyber acts. This adds to
the operating costs of the banks which the customers have to bear.

3. Bankruptcy

Mismanagement of the depositors and shareholders’ funds by the banks management can lead to
commercial banks going bankrupt. Global or regional economic recession and/ or depression
where economic activities were negatively impacted can lead to customers doing more of
withdrawal transactions than deposits, and also making the borrowers unable to meet up with
their loan repayment obligations. Banks may not have enough cash to meet up with withdrawal
demands

4. Encumbrance Process of Getting Loans

The amount of collateral securities required by commercial banks before offering loans are
usually high which the borrowers may not be able to provide. If people do not have the necessary
collateral securities with which to borrow money from the banks, the banks will be reluctant to
make loans available.

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Generally Weak information and file management of some workers, There is no punctuality
(being on time) and close relation between the manager and accountants, There is some
inefficiency material like chair tables and computers for trailing staffs are their weak side, lack of
staff motivation and commitment, Especially high employees desire to turnover is a major
weakness of 18 Adebabay branch of commercial bank of Ethiopia.

4.3 Opportunity of the organization

 In general, changes in the external environment that may uplift the company can be
an opportunity to the firm. Weakening of the competitors by a poor cash flow
position is an opportunity for 18 Adebabay branch to capture market share, similarly
change in tax structure, progress in economic trend, the passage of favorable laws,
Steady and fast growth of population is good opportunity for increase their customer,
Availability of educated man power, Development of information technology are all
opportunities in 18 Adebabay branch of CBE.

4.4 Treat of the organization

 Banks today face risks that extend beyond their depositors' balances and loan portfolios.
Cybercrime, consumer protection, and financial regulation are all aspects of day-to-day
operations that could land a bank in trouble for missteps. If this bank follows the
current organizational structure for the future may face the following challenges.

 Volatility of currency

 Electrical power

 Poor credit culture and know how about banking and its service within the
society

 Most people are having less knowledge about taking loan from bank.

 Connection problems

 Economic condition of the country

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5. PROBLEMS ENCOUNTERED ON THE JOB AND

REMEDIAL MEASURES

5.1 problems observed that affect the organizational at current time

and its critical issues in commercial Bank of 18 Adebabay Branch
There are some problems which affect me on my activities of 45 days. Some of these problems
are from the organization and some are from customers those hinder my activities to not serve
customer properly. From customers some customers don’t care about criteria’s to be fulfilled
properly rather than looking only about the service. Some of them don’t sign on the ticket and
some signature on the ticket and on the book are different, No correct order of sender name
which is difficult to serve customer, Some of them bring incorrect account which the system is
not read.

I faced many problems during this apparent; At the beginning time they didn’t give me full
freedom to do activities independently, The transportation system is very crowded, Shortage of
some additional working materials like chair and computers for trainers and Some employees are
not interested for sharing their experience because of this it is difficult to me to reach work place
on time.

The primary problem regarding the historical back ground of the organization rises due to lack of
organized and return document in the organization.

 There is no Wi-Fi in the bank.

 Lack of sufficient written document about the organization.

 Lack of use time properly.

 So many employees in small staff.

 File management and documentation improperly among some workers.

 Connection and Electrical problem

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6. SUGGESTED SOLUTION (MEASURE) TAKEN

TO SOLVE OR AT LEAST MINIMIZE PROBLEMS
In order to increase customer’s satisfaction and to achieve mentioned objectives the possible
solution I suggested for such problems are the following.

 I was try to adapt new environment and working condition gradually by studding
behavior of department member and sharing experience among them.

 It should have to arrange its document in proper manner.

 To solve transportation problem I try to wake up early.

 The organization should have to full fill all the necessary materials like chair and
computers which are technologically improved to facilitate its service.

 The organization should give the opportunity for students to participate in a given
activities freely in order to improve their knowledge and producing self-confident
professionals.

 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

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7. CONCLUSION AND RECOMMENDATION

7.1 Conclusion
This practical attachment contains information; include Introduction, background of the
organization, cardinal issues, goals of the organization, organization’s structure, etc. It covers
background of commercial bank of Ethiopia 18 Adebabay Branch. The office is standing to
satisfy its customers, women empowerment and respecting women and child right. I observed
some issues like the professional status of the staff members, punctuality of the staff members
and gender in the organization.

Generally, I gained some experience due to this practical attachment such as how to work in
cooperation with other, etc. The main problem I found is that the societies have low information
about banking system, negative attitude of society toward the term bank and department. Lack
of information and lack of enough time are other problems; however, I tried to do my best in
order to overcome or give related solution to those challenges.

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7.2 Recommendation
While I doing my practical attachment, I observe some issue in lens of my eyes. Therefore, I
would like to suggest on some issues that I observed during accomplish my practical attachment
in Addis Ababa CBE 18 Adebabay branch.

Firstly, this bank should have created comfortable environment between the manager,
customers and accountants. Secondly, I would like to suggest on the effort of the office toward
promoting development of bank system through modernized way. Thirdly to solve the problem
a lack of data about historical back ground of the organization they should gather information
from head office and try to organize the document.

However, the office is lag behind in order to promote growth which is the backbone of
development. This is due to lack of enough information in the organization which play a great
role in order to meet its objective. The organization needs to change this situation by looking for
bank expert which play a great role in order to promote banking system.

Finally, I would like to suggest to commercial bank of Ethiopia 18 Adebabay branch have to
work properly to achieve their goals and also to address other problems by working in
cooperation with other organization, especially non-governmental organization.

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REFERENCE
The main source for this report is CBE 18 branch employees and manager and the
following websites;

https://www.combanketh.et

Facebook: www.facebook.com/combanketh

http://banksethiopia.com
www.cbe.com.et

www.linkedin.com/company/commercialbankofethiopia

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