HARAMAYA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF ACCOUNTING AND FINANCE

PRACTICAL ATTACHMENT IN ACCOUNTING AND FINANCE

AT COMMERCIAL BANK OF ETHIOPIA GINNER BRANCH

Name:-Ibsa Tahir

ID No: - 0604/10

HARAMAYA, ETHIOPIA

OCTOBER 2019
Table of Contents
ACKNOWLEDGMENT....................................................................................................................................i
ABSTRACT.....................................................................................................................................................i
CHAPTER ONE..............................................................................................................................................1
1 .INTRODUCTION...................................................................................................................................1
1.1 HISTORICAL BACKGROUND OF THE COMMERCIAL BANK OF ETHIOPIA.............................................1
1.2 CARDINAL VALUE OF COMMERCIAL BANK OF ETHIOPIA.................................................................2
1.2.1 Mission:-.....................................................................................................................................2
1.2.2 Vision..........................................................................................................................................3
1.2.3 Values.........................................................................................................................................3
1.2.4 Objectives...................................................................................................................................4
1.3 Organizational structure of commercial Bank of Ethiopia.................................................................5
CHAPTER TWO.............................................................................................................................................7
2. ACTIVITY REPORT................................................................................................................................7
2.1 BACKGROUND OF CUSTOMER SERVICE DEPARTMENT......................................................................7
2.2 OBJECTIVE AND MAJOR RESPONSIBILITY OF CUSTOMER SERVICE DEPARTMENT.............................7
2.3 Accounting policies............................................................................................................................9
2.4 Performance Evaluation..................................................................................................................10
CHAPTER THREE........................................................................................................................................11
3.1 SWOT ANALYSIS OF THE ORGANIZATION........................................................................................11
3.1.1 Strength....................................................................................................................................11
3.1.2 Weakness..................................................................................................................................11
3.1.3 Opportunity..............................................................................................................................12
3.1.4 Threat.......................................................................................................................................12
3.2 Problems of the organization..........................................................................................................13
3.3 Possible solutions I would suggest...................................................................................................13
CHAPTER FOUR..........................................................................................................................................14
4. CONCULISION AND RECOMMENDATION...........................................................................................14
4.1 Conclusion.......................................................................................................................................14
4.2. Recommendation...........................................................................................................................14
5. Reference..............................................................................................................................................15
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ACKNOWLEDGMENT
First, I would like to thanks Allah who helped me through all my steps.

Next, I would like to thanks Haramaya University and Department of Accounting and Finance for giving
this chance to practice what I learned theoretically.

My deepest and sincere gratitude also goes to the Commercial bank of Ethiopia Ginner branch
Employees, which I have worked and facilitated while doing my practical attachment, specially
the manager of the branch Mr.Tashome Debele.

The last but not the least, is my special appreciation to my family for their support in
accomplishment of this practical attachment.

ABSTRACT
This report was prepared on Commercial Bank of Ethiopia Ginner branch. It compromise
detailed information about commercial bank of Ethiopia starting from its establishment.
Commercial bank of Ethiopia Ginner branch was established on September 17, 1981. The
organization perform different function through different department under it.

The report also includes four major titles with various subtitles under each titles. The
Introduction, Activity report, SWOT analysis, conclusion and recommendation. Subtitles also
explained in details in this practical attachment.

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CHAPTER ONE
1 .INTRODUCTION
This paper is prepared to accomplish the course professional practice in Accounting and Finance
that enables as to show the applicability of theoretical course in Accounting and Finance in the real
world business environment. As known there are three-business enterprise these are service,
manufacturing and merchandise enterprise and they play a greater role in the economy and social
aspect of the country development.
I conduct my professional practice in service enterprise type of business, which is called Commercial
bank of Ethiopia Ginner branch. The report includes Historical background of the organization, detail
description of the assignment that I was handled, mission, vision, objective, values and SWOT analysis of
the organization. As well as, problems and suggested solutions, finally conclusion and recommendation.

1.1 HISTORICAL BACKGROUND OF THE COMMERCIAL BANK OF ETHIOPIA

The history of Commercial Bank of Ethiopia dates back to the establishment of the state
Bank of Ethiopia in August 1942. Commercial bank of Ethiopia was legally established as a
share company in 1963.According to the issuance of the monetary proclamation in 1963, the
National Bank of Ethiopia & Commercial Bank of Ethiopia were established to handle national
and commercial banking function respectively.

In 1974, Commercial Bank of Ethiopia merged with privately owned Addis

Ababa bank .since then, it has been playing significant roles in the development
of the country. It was dominating the banking business all over the country. Commercial
Bank of Ethiopia is 100% state owned financial institution and the leading Commercial Bank
of Ethiopia in Ethiopia by its asset amount and market share in deposit & credit. In its
economical contribution, the bank is the greatest source of finance to the country. In June
2019, total number of branches reached more than 1230 all over the country. Commercial bank
of Ethiopia is pioneer to introduce western union money transfer service in Ethiopia early 1990
and currently working with other 20 money transfer agents like money Gram, Atlantic
international(Bole),Xpress money,…

Commercial Bank of Ethiopia has reliable and long-standing relationships with many
internationally acclaimed banks throughout the world.

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It is reliable bank & has strong relationship with several foreign banks: -Commercial Bank of
Ethiopia has more than 29.5 million account holders all over the country.

When we come to Commercial Bank of Ethiopia Shashemene district, it has 88 branches one of
its branch is Ginner branch, Ginner branch was established as branch of Commercial Bank of
Ethiopia in September 17, 1981. Ginner branch is a grade two branch found under the domain of
shashemene district and far 295km from district office to east. The branch is found on the city of
Ginner. Currently the branch has 38 employees. Presently the branch is using smart and T-24
system and it gives different service for the society starting from its establishment. Until the time
I started, my professional practice more than 12000 customers opened saving & deposit account
in the branch.

The major services given by the Commercial Bank of Ethiopia are the following:-

• Account opening ( Women saving account, education saving account, IFB account,
condominium saving or Housing deposit, current or checking account)

• Foreign exchange transaction

• Money transfer(local or foreign)

• Viewing account balance and transaction

• Making fund transaction between customer accounts

• Paying salary of Employees

• As Trustees agency

1.2 CARDINAL VALUE OF COMMERCIAL BANK OF ETHIOPIA

1.2.1 Mission:- it is the purpose of whole duties
The Bank committed to best realize stakeholder’s values through enhanced financial intermediation
globally and supporting national development priorities, by developing highly motivated, skilled,
disciplined employees as well as the state of the art technology. The bank strongly believe that reliability
and public confidence are the base of our success.

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1.2.2 Vision
• To become a world class Commercial Bank by the year 2025. World class in this context
presumes efficiency, good cooperation with governance and move toward best
international banking practice.

1.2.3 Values
1. Integrity

- The bank committed to the highest ideas of honor and integrity

- The bank strive to act in honest and trust worthy manner

- The bank firmly adhere to ethical principles

2. Customer satisfaction- putting customer interest first

- The bank strive to excel in business and satisfy customers

- It committed to offering the highest quality service to customers.

3. Employee satisfaction

-The bank committed to employee training and professional development

- It recognize employee as valuable organizational resource

- It recognize employee for their achievements

4. Learning organization

-The bank strive to establish a cultural that nurtures individual and group learning.

- It committed to anticipating and responding to internal and external change through

constant improvement and adaptation.

5. Team work and collaboration

-The bank recognize the importance of teamwork for success.

- It support one another and working cooperatively.

6. Public trust

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- The bank understand that the sustainability of business depends on the ability to maintain and
build confidence.

7. Value for money

- Resource carefully to safe expense, time and effort.

-The bank deliver the same level of service for less cost, time and effort.

- It deliver a better service for getting a better return for the same amount of expense, time and
effort.

8. Decentralization

- The bank committed to delegating operation and decision-making responsibilities.

9. Corporate citizenship

-The bank abides by the law of Ethiopia and other countries in which it do business.

- The bank care about society welfare and the environment.

1.2.4 Objectives
• To maximize customer satisfaction

• To implement management information system

• To develop competence

• To build change for all bank staffs

• To establish performance base incentives

• To bring modern banking technology and professionalism

• To become an icon of excellence and the leading commercial bank of Ethiopia

• Deposit mobilization service

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1.3 Organizational structure of commercial Bank of Ethiopia

BRANCH
MANAGER
B

MANAGER BRANCH MANAGER BRANCH

MANAGER BRANCH
BUSINESS QUALITY ASSURANCE
OPERATIONS


Senior
Banking Associate
Banking
operation quality
Business
officer assurance
officer
officer

Junior Banking
officer Business
officer

Bank Customer
Trainee service
officer

Junior office
Cash
office
Attendant

Bank
Trainee

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General Authority and Responsibility

Branch Manager:-the Branch Manager shall manage and coordinate the overall branch
management to effectively provide all front – office services and back –office operation at the
branch levels.

Manager, Branch Business: - The Manager Branch Business shall supervise the business
activities in the branch, both banking service and credit management.

Manager, Branch Operation: - The Manager Branch Operations shall supervise the operations
management activities (general ledger management, cash operations, bulk transaction
processing, achieving, and logistics) in the Branch.

Manager, Branch Quality Assurance

The Manager Branch Quality Assurance shall supervise the quality assurance management
activities in the Branch.

Banking Business Officer

A .Open new account on the system.

B. Collect cash from the customer or debit the customer account

Auditor (branch controller)

A, Sign on the document for the accuracy and correctness of daily opened account

B, receive document from checker, checker for the compliance and file them in customers
mandate file

C, Checks and authorizes customer record

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CHAPTER TWO
2. ACTIVITY REPORT

2.1 BACKGROUND OF CUSTOMER SERVICE DEPARTMENT

Customer service department is one of the sector of commercial bank of Ethiopia Ginner branch. It
performs its activity and responsibilities by setting specific and feasible goals which support to speed up
customer satisfaction.

2.2 OBJECTIVE AND MAJOR RESPONSIBILITY OF CUSTOMER SERVICE

DEPARTMENT
2.2.1 OBJECTIVE OF THE DEPARTMENT
- To provide efficient and quality service to its customers

- To ensure standardization and uniformity in the customer service process

- To smoothly implement integrated banking solution in retail banking operation of customer service
process

2.2.2 MAJOR RESPONSIBILITY OF THE DEPARTMENT

- Account opening

- Cash deposit or withdrawal

- Checking daily activities

- Handling foreign exchange

Some of the activity that I performed with the help of customer service officer and all staff
members were -

• Account opening for new customers. accounts such as

• Saving account-, it is an interest bearing deposit within the Commercial Bank of

Ethiopia by physical & legal persons (individuals, organizations & associations)
who can fulfill the bank’s requirement. The acceptable minimum balance to open
saving account is birr 25.

When customers are deposit their cash the bank records the transaction as
follows

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Cash…………………….xx

Customer account………………xx

(To record cash deposit by the customer)

When the customer withdraws cash from his /her account, the bank records the
transaction as follows

Customer account…………xx

Cash………………………………xx

Demand deposit account (current or checking account)-it is a non-interest bearing account. The
minimum amount of money required by the Commercial Bank of Ethiopia to open a current
account for individual or individual trade operators is birr 500 and for others birr 1000.

Fixed time deposit account- is a type of a deposit account received for a certain period, at a
minimum period of three month. It bears interest only for the specified period. The minimum
balance acceptable for this fixed time deposit is 50,000.

Special demand deposit account-it is a non-interest bearing account that is opened to fulfill the
requests of those customers who, for one reason or another, do not want their deposit accrue for
them any interest. 25 birr is the minimum requirement for opening this account type.

• On Telegram, that means since there is no network connection among branches of

Commercial Bank of Ethiopia except city branches, all branches are connected with
telegram (specially by Telephone & Fax) to send outgoing messages & to receive
incoming messages to/from other branches and by entering these on computer system its
use smart App

• Local money transfer when one customer transfers money to the customer who is resided
within the same country that is regulated by head office when the two branches are not
connected with network when this kind of transaction is occurred the bank records it as
follows

Cash…………………….xx

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Head office…...xx

(To record local money transfer that received from individuals)

When the branch office pays the bank records the transaction as follows

Head office ……………………….xx

Cash………………………………….xx

(To record payment of local money transfer to individuals)

• filling different forms for customers, out of these forms some of them are: - a form to
send money(on cash or from account)

-cash deposit form

-cash withdrawal form

-retransfer form

-CBE birr form

-account blocking form

-western union money transfer form, and others

. Check the name, date and signature of the customer to be filled properly
2.3 Accounting policies
The following are some of the major accounting policies adopted by the Commercial Bank of
Ethiopia.

Basis of preparation

The financial statements have been prepared in compliance with international financial
reporting standards. They are prepared under the historical cost. All amounts in the financial
statements are expressed in Birr.

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Valuation of assets and liabilities

Asset and liabilities denominated in foreign currencies are translated in to birr at the exchange
rates ruling at the date of statement of financial position.

- All major financial assets are measured at fair value.

- All Property and equipment are stated at cost less accumulated depreciation &
impairment loss deprecation is charged on a straight-line basis over the Useful Life of
the asset.
- Gains & losses on disposal of property & equipment are determined by comparing the
proceeds on disposal and the carrying amount of the respective item and are taken in to
account in determining operating profit.
- Stocks are stated at cost less any provision for impairment

Recognition of financial assets and financial Liabilities

The bank recognizes a financial asset or financial liabilities on its statement of financial position
when, and only when, it becomes a part to the contractual provisions of the instrument.

Petty cash of commercial bank of Ethiopia

Petty cash-is a small amount of money that is kept in an office in order to pay for small items.
It is established by estimating the amount of payments needed from the fund during a period.

Petty cash ___________xx

Cash _______________________xx

(To record petty cash in cash box)

2.4 Performance Evaluation

 During the time that I have been working I get a brief understanding of theoretical studies
of banking and related topics such as opening and closing of accounts ,exchanging
foreign currency and how to audit payments.
 it enables me to make good relation with staff members
 Generally it gives me a good understanding of banking world and the work environment
of theoretical accounting that related to banking principles

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CHAPTER THREE
3.1 SWOT ANALYSIS OF THE ORGANIZATION
As it is known, the SWOT analysis or internal environment analysis enables an organization or
Commercial Bank of Ethiopia determine “what can do” permitted by its resource capabilities
and core competencies.

3.1.1 Strength
Commercial Bank of Ethiopia has the following strength.

 Commercial bank is the first bank to introduce ATM service,

 safekeeping of documents & other items in safe deposit boxes

• Good punctuality within the staff

• Good relationship between staff members

• Good efficiency and ethical conduct of staffs

• Continuous effort for change implementation

• Continued profitability

• Low interest rate and service charge

• It’s also widely give mobiles banking service compered to privately owned banks

• Major source of employment

• Its accessible for all community members because of large numbers of branches
throughout the country

3.1.2 Weakness
Commercial Bank of Ethiopia Ginner branch has the following weaknesses: -

• Lack of excess internet or network service

• There is no adequate information about the branch

• Weak customer service

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• Weak information management

• weak physical resource management practice

• Lack of facility that couldn’t establish all the branches online network system

• Weak working environment for employees( not comfortable)

• Lack of accessibility for disables, especially for blinds

3.1.3 Opportunity
The organization has been established by considering different opportunities. From these
prospects, the following has great influence: -

• Steady and fast growth of the economy and the population

• Government commitment to large infrastructure & social development projects

• High public trust

• Sensible of qualified workforce in the market

• Development of information communication

• Restriction of foreign banks entry

• Good political, social & economic conditions in the country

• Have a good financial and physical resource position than others

3.1.4 Threat
If the organization follows the current organizational structure for the future, the organization
may face the following challenges: -

• Competitors share of the market(entrance of new private banks)

• Poor credit culture & know how about banking and its service, within the society

• Unfair competition between banks to control the market share

• Some new and revised regulation of National bank of Ethiopia.

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3.2 Problems of the organization

 Currency fluctuation.
 National rule and regulation.

 Lack of superior service quality

 The major problem of CBE in general and specifically in Ginner branch in particular has
network or connection problem.

 Sometimes telephone network and internet connection is interrupted

 Even if the organization has a structure, because of shortage of workforce all works in
different departments are covered by few persons which is obstacle to provide fast &
flexible service for customers

 High competition from aggressive expansion of private banks

 Subjective judgment based performance appraisal of workers

3.3 Possible solutions I would suggest

The possible solutions that I suggest for such problems are

• The workforce should be fulfilled for each department to facilitate the service that the
organization gives

• It should have fulfill all the necessary materials which are technologically improved
to facilitate its service

• The organization should have provide a quality service for its customers to being a
good competitor in the market

• The organization appraisal system should be based on efficiency & effectiveness

• Resource consumption way should be wise and manageable

• The bank should implement its own network system

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CHAPTER FOUR
4. CONCULISION AND RECOMMENDATION

4.1 Conclusion
Commercial Bank of Ethiopia is the earliest and the oldest in the history of banking in Ethiopia.
Starting from its establishment in 1942, it gives different services to the society and it support the
economic development of the country by financing and by providing loan service for huge
industries & businesses. In addition, it betters its financial position and market share through
time and it have got the current position what it has today. Through this time it has its own
strength, weakness and problems, comparing with competitors .during the time I stayed in
Commercial Bank of Ethiopia Ginner branch for professional practice, I have also analyzed these
strength, weakness and problems, some of them are it is profitable when we compare with other
banks and it have good staff relationship. I have also seen some problems & weaknesses relating
with customer service, resource management, material & work force shortages.

Generally, during the time when I stayed on this professional practice, I have much knowledge &
experience relating with my profession and I have seen what looks like the Bank job and
relation.

4.2. Recommendation
As it is mentioned out the Commercial Bank of Ethiopia Ginner branch has its own strength, weaknesses
and problems. So in order to overcome these problems and to provide qualified service for its customers, I
have recommended the following points:

• All branches of Commercial Bank of Ethiopia should be networked

• To attract more qualified workers the appraisal system should be based on the appraisal standard
& the employee performance

• The organization should create an awareness inside the society to increase its customers size and
to develop the habit of saving of the society

• Totally, Commercial Bank of Ethiopia should continue its support to meet the five-year growth
and transformation plan of the country and to end up the great renaissance dam by supporting
large businesses & by selling the bond.

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5. Reference
=> Annual report of the company

=>Branch banking procedure

=> Daily activities

=>Oral interview

=>Organization Broachers

=>Training module of commercial bank of Ethiopia

=> Website of the organization: www.combanketh.et

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