ODA BULTUM UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF ECONOMICS

PRACTICAL ATTACHMENT CUSTOMER ACCOUNT AND TRANSACTION

SERVICE ON COMMERCIAL BANK OF ETHIOPIA DERA BRANCH

NAME ID NO

1. ANBESS TEKLU 0591/12

Supervisor; Biruk Getanh

August 16, 2022 G.CHCHIROH

Chiro, Ethiopia
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 Acknowledgement

First of all I would like to above all, honors, adorations, great appreciations and thanks go to
almighty God for his support everlasting love, mercy and support towards me. Next to God, I
would like to thanks to commercial bank of Ethiopia Derra branch staff members. Generally, I
would like to acknowledge all individual and institutions that support me through material and
morally supports towards me to finish my practical attachment.

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Abstract

This practical attachment paper explains the service that commercial bank of Ethiopia Dera
branch provide service for the customer . Derra branch were opend on 1987 E.C

The objective of this practical attachment is to enhance student’s knowledge, skills and ability to
convert what they learn in theoretical in class into practical. Practical attachments will serve for
the student to be well qualified, skillful and also problem solver.

Finally, this practical attachment suggest solutions for the problems,and challenges faced by the
branch and commercial bank as general .

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Table of Contents
Acknowledgement........................................................................................................................................i
Abstract.......................................................................................................................................................ii
CHAPTER ONE..............................................................................................................................................1
1. INTRODUCTION.......................................................................................................................................1
1.1 History of commercial Bank of Ethiopia.............................................................................................1
1.2. The main function or the core activities of commercial bank of Ethiopia.........................................2
1.3. Vision, mission statement and core values of the commercial bank of Ethiopia..............................4
1.3.1. Vision of CBE..................................................................................................................................4
1.3.2. Mission of CBE...............................................................................................................................4
1.3.3. Core value of CBE...........................................................................................................................4
1.4. Organizational structure...................................................................................................................6
2. Customer account and transaction service department..........................................................................7
2.1 key function of the department.........................................................................................................7
2.2. Staff establishment of DERRA BRANCH in terms of the number of employees and their duties and
responsibilities.........................................................................................................................................7
2.2.1. The number of employees in Derra branch...................................................................................7
2.2.2. Major duties and responsibility of the department.......................................................................7
CHAPTER THREE........................................................................................................................................10
3. Evaluation of the attachment period.....................................................................................................10
3.1. Significance of gaining from practical attachment..........................................................................10
3.2. Strength and weakness of Derra Branch.........................................................................................10
3.2.1. Strength DeRRA Branch...............................................................................................................10
3.2.2. Weakness of Derra Branch..........................................................................................................10
3.3. Threats and opportunity of Derra Branch.......................................................................................11
3.3.1. Threats of Derra Branch...............................................................................................................11
3.3.2. Opportunity of Derra Branch.......................................................................................................11
3.4. Possible problem of Commercial Bank of Ethiopia Dera branch.....................................................11
3.5. I have faced many challenges during the practical attachment period...........................................11
3.6. The solution for the challenges of practical attachment.................................................................11
3.7. Conclusion for the practical attachment.........................................................................................12
3.8. Recommendation...........................................................................................................................12

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 3.8.1. How the practical attachment course implementation can be improved?..................................12
3.8.2. I observed the solution for the problems during the practical attachment.................................13
Reference..................................................................................................................................................14

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 CHAPTER ONE

1. INTRODUCTION

1.1 History of commercial Bank of Ethiopia

The first bank to be established in Ethiopia was the bank of Abyssinia in 1905. It was owned and
managed by the British-owned National Bank of Egypt. It was given a banking monopoly for
fifty years, including the right to issue notes and coins. However, three other banks were
established in the next ten years. In 1931, the Bank of Abyssinia was replaced by the bank of
Ethiopia which was wholly owned by the government and members of the Ethiopian aristocracy,
becoming the first 100% African-owned bank on the continent; it was also authorized to issue
notes and coins and to act as the government’s bank. It operates for only a few years, being
closed after the Italian invasion. During the Italian occupation, several Italian banks opened
branches in Ethiopia.

After the Ethiopian victory over fascist Italy, the new government issued a proclamation in
August 1947 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.

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).

The commercial bank of Ethiopia is a public-owned financial service provider institution

headquartered in Addis Ababa. In 1963, the bank assumed the current name Commercial Bank of
Ethiopia (CBE). Moreover, it abandoned the role of a central bank and maintained commercial
bank functions.

During the past 75 years, CBE has been a prominent financial service provider in the country and
played a significance role in financing the development endeavors of the nation. Data compiled
by the National Bank of Ethiopia as at June 30, 2016 show that CBE commands 66.1 percent of
the total deposit mobilized by the banking sector, 52.6 percent of loans and advances disbursed
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by the banking industry, and 36.3 percent share of branch network in the country. It is the first
Bank in Ethiopia to open overseas branches.

Currently, CBE covers almost all parts of the country through its more than 1,230 branches. With
its more than 33,000 staff, the Bank provides quality service for its customers.

The Commercial Bank of Ethiopia (CBE) is the largest commercial bank in Ethiopia. As of
June 2021, it had about 1.1 Trillion Birr in assets and held approximately 67% of deposits and
about 53% of all bank loans in the country. The bank has around 22,908 employees, who staff its
headquarters and it’s over 1000 branches positioned in the main cities and regional towns.

The bank also operates two branches in South Sudan, and is contemplating opening re-opening a
branch in Djibouti, and opening branches in Dubai .The bank is pioneer to introduce modern
banking to Ethiopia and credited for playing a catalytic role in the economic progress and
development of the country. It is also the first bank in Ethiopia to introduce ATM service for
local users. Currently commercial bank of Ethiopia has more than 1700 branch and 34.1 million
customers across the country and the total asset of the bank is 1.1 trillion birr.

Commercial Bank of Ethiopia (CBE) is the market leader across various measures of market
share. It is most dominant in providing credit, holding 66% of the nation's overall loan book, and
deposits at 62%. CBE also represents roughly half of the banking sector's capital and profits.
Derra branch were opend in 1987 E.C.

1.2. The main function or the core activities of commercial bank of Ethiopia

The main functions of the commercial banks can be summed up in one sentence: the banks
borrow to lend. To receive deposits and to advance loans are thus the two main functions of all
commercial banks. They borrow in the form of deposits and lend in various types of advances.

Besides, there are other miscellaneous functions of commercial banks which have
developed according to the needs of the society:

(a) Accepting Deposits:

The banks borrow in the form of deposits. This function is important because banks mainly
depend on the funds deposited with them by the public

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The deposits received by the banks may be of the following types:

(i) Demand Deposits or Current Account Deposits:

If a depositor deposits money in the bank in the current account (i.e., demand deposits), he can
withdraw it in part or in full at any time he likes without notice. These accounts are generally
kept by businessmen whose requirements of making business payments are quite uncertain.
Usually no interest is paid on them, because the bank cannot utilize these short-term deposits for
lending purposes and must keep almost cent per cent reserve against them.

But in return for these current account deposits, the banks offer some facilities or concessions to
the account holders. The most important is the cheque facility made available to them, that is, the
account holders make payment to the parties through cheques on these accounts. Further, on
behalf of the holders of current account deposits, banks collect cheques, drafts, dividend
warrants, postal orders, etc.

(ii) Fixed Deposits or Time Deposits:

These deposits are made for a fixed period of time, which varies from fifteen days to a few years.
These deposits cannot, therefore, be withdrawn before the expiry of that period. However, a loan
can be taken from the bank against the security of these deposits within that period. A higher rate
of interest is paid on the fixed deposits. As the fixed deposits carry a good rate of interest, they
are a good source of investment by the people who are in a position to save.

(iii) Savings Bank Deposits:

In this case the depositor can generally withdraw money usually once a week. Sometimes there
are also restrictions as to the total amount that can be withdrawn at one time and the total amount
that can be placed in one deposit. These deposits are generally made by the people of small
means, usually, people with fixed salaries, for holding their short-term savings. Like the current
account deposits, the saving bank deposits are payable on demand and also they can be drawn
upon through cheques.

(b) Advancing Loans:

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Another function of the bank is to give loans to others. If the bank does not lend the deposited
money to others, how can it pay the interest on the deposits to depositors? Banks give loans to
businessmen and firms usually for short periods only. This is so because the bank must keep
itself ready to meet the demands of the people who have deposited money for short period only.
In advancing loans, the bank has to shoulder a heavy responsibility.

The bank makes profit by advancing loans. But the bank deals in other people’s money and it has
to keep some ready cash to meet the depositors’ demands. Hence a great care has to be exercised
in the matter of lending and keeping resources.

The bank must strike a fine balance between liquidity and profitability. If it keeps its assets in too
liquid a form, it loses profit and if it tries to make too much profit, it may not be able to meet the
depositor’s demand. It must aim at both liquidity and profitability.

1.3. Vision, mission statement and core values of the commercial bank of Ethiopia

1.3.1. Vision of CBE

To become a world class commercial bank by the year 2025

1.3.2. Mission of CBE

The bank committed to best realize stockholders values through enhanced financial
intermediation globally and supporting national development priorities, by developing highly
motivated, skilled and disciplined employees as well as the state of the art technology.

The bank strongly believes that winning the public confidence and developing sustainable
business model are the basis of it is success.

1.3.3. Core value of CBE

Integrity:-the bank committed to the highest ideal honor and integrity. The bank strives to act in
an honest and trustworthy manner.

Corporate citizenship:-the bank abides by the law of Ethiopia and other countries in which it do
business. The banks value the importance of its role in national development endeavors. It cares
about society welfare and the environment.

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Quality service: - the bank committed to offer quality service to customer aspires to brand to
with quality is the mind of customer and general service.

Customer satisfaction: - the bank strives to excess in it is business and satisfy customers.

Team work: - the bank recognizes the importance of team work for the bank success and also
respects diversity of view of point.

Innovation:-the bank encourages new ideas that can improve customer experience and the banks
experience.

Employee satisfaction:-the banks recognize the employees as valuable organizational resources.

The banks are committed to employee training and professional development.

Public trust:-the bank understand that the sustainability of bank business bank it depends on its
ability to maintain and build up public confidence.

Value for money:-the bank uses resources carefully to save expense, time and effort

Decentralization:- the banks are committed to delegating operation and decision-making

responsibilities.

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1.4. Organizational structure

Organizational structure is the most essential part of the office to achieve its objectives and
mission.
Branch Manager

Business Manager Operation Quality Mgt &

Manager Control-Manager

Customer Customer Senior Quality

Service Manager Service Manager Mgt & Officer

Senior branch Senior Branch Quality Mgt &

Banking officer- Banking Officer- Control Officer
Business cash

Customer
Branch Banking
Relation Officer
Officer-back
Branch Banking Junior Officer-
Officer-front back
Branch banking Bank Trainee-
officer-sales Back

Digital Banking
Officer Cash Attendant
Junior -front
officer

Bank Trainee
Front

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 CHAPTER TWO

2. Customer account and transaction service department

2.1 key function of the department

To ensure standardization and uniformity in the customer service process

To smoothly implement integrated banking solution in retail banking operation of customer

service process.

It has single source of reference to perform.

It provides efficient and quality service to its customer.

To determines duties and responsibilities that each employee at all level in the customer service
process.

2.2. Staff Establishment Of Derra Branch In Terms Of The Number Of Employees And
Their Duties And Responsibilities

2.2.1. The Number Of Employees In Derra Branch

There are 10 (BBO)branch banking officer in customer account and transaction service

4 BBO SALES Back office

2 bond ad ATM reconcilation staff at back office

4 SBBO seinor branch banking officer

3 line managers+ (business manager,opration manager and quality control manager )

1 branch manager

2.2.2. Major duties and responsibility of the department

1. Account opening: - there are many types of accounts.

Those are:-

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Saving account: - is interest bearing deposit opened by legal and physical persons, organizations
and association.

Demand deposit account: - means 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 deposit: - a type of account deposit is received at certain period of time without
movement a minimum of three month and attracts higher interest rate than others.

Earmarked account: - is account opened with other description after the name of the account
holders such as club, business and workshop account.

2. Duties related to cash

Cash withdrawal

Cash deposit

3. Telegram: - that means send outgoing message and receive incoming message from other
branch.

4. Handling foreign exchange: - means the exchange of other currency into birr.

5. Checker activities: - means checking daily tickets which are filled and written manually, by
comparing the information and balance existing in the computer system.

2.3. The responsibilities and major activities me as a members of department

As the department member I 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 commercial bank of Ethiopia Dera branch.

I opened account for more than 75 customers by supporting employees

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

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

I gave different service for department and customers.

I fill different forms by helping customers.

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 CHAPTER THREE

3. Evaluation of the attachment period

3.1. Significance of gaining from practical attachment

I have gained benefits from the practical attachment. It has the following major significance
gained from the practical attachment:-

To improving or develop our skills and knowledge.

To increase the capacity of how I can solve the problem.

I know how to get along well with people and to meet their needs by not boring different
customer characteristics.

I have seen some of the things I’ve learned in practice, such as interest rates and loans. I
understand how many loans there are and how long they have been.

3.2. Strength and weakness of Derra Branch

3.2.1. Strength DeRRA Branch

The employees are not bored and provide proper customer service.
All employees have a strong relationship with the management and therefore strive to
satisfy customers.
efficiant and ethical
All employees are qualified and well trained to work, so they achieve their goals.
The bank makes good relation with other local banks.
The bank has qualified and experienced management system.

3.2.2. Weakness of Derra Branch

 There is no effective utilization of resource like paper,.

 Keeping computers that can be serviced with minor maintenance as unused.
 Sometimes there is connection problem that makes customer angry.

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3.3. Threats and opportunity of Derra Branch

3.3.1. Threats of Derra Branch

 Political instability
 High employee’s turnover
 Volatility of currency
 Economic condition of the country

3.3.2. Opportunity of Derra Branch

 Well trained and qualified employees

 The population growth is good opportunity to increase the customer for bank.
 The development of infrastructure and investment in the country play great role for bank.

3.4. Possible problem of Commercial Bank of Ethiopia Dera branch

 The major problems are inefficient materials like computer, furniture and others when as
compared to customer.
 There is no efficient utilization of resource.

3.5. I have faced many challenges during the practical attachment period

The followings are listed below the challenges that I have faced during the practical attachment
period.

 The transportation system is very crowded and it is difficult to me reached work place
being on time.
 The shortages of some additional working materials like chair and computers for trainer.
 At the beginning time they didn’t give me full freedom to do activities independently.
 It is difficult to some employees are sharing their experience.

3.6. The solution for the challenges of practical attachment

By getting up early to solve the transport problem and the wasteful minute, I was able to
arrive at work by getting a transport.

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 I have solved the shortages by fixing broken computers that can be done with small
repairs and asking for more.
I have asked them to help me understand what I need to do to increase my skills and
knowledge so that I can do any work freely and independently.
I was try to adapt new environment and working condition gradually by studding
behavior of department member and sharing experience among them.

3.7. Conclusion for the practical attachment

This practical attachment includes introduction, background of commercial bank of Ethiopia

spasificaly Derra banch , it covers the background of the commercial bank of Ethiopia and Dera
branch . Its structures and main functions not only this but also so many points discussed in the
previous like the strength, weakness of the banks and so many points discussed in the earlier and
etc.

I have observed some issues like, the professional status of the staff members.

Finally, I have gained some experience due to this practical attachment such as how to work
corporate with each other. I understand how to increase customer demand and customer numbers
by providing good service to customers.

3.8. Recommendation

Therefore, I would like to suggest solution for problem that I observed during my aparantiship

 The branch managemet has to manage their staff to use the branch resoures effectivly
 The staff has to use and reduse branch expense
 The branch management has to vist their working partners periodicaly
 The branch should to work properly and efficiently to achieve goals and objectives.

3.8.1. How the practical attachment course implementation can be improved?

In the current situation, it’s not enough to see the student’s budget because there is a very high
cost of living as a country, so if he consulted the season when the budget was budgeted, and the
students of his work did well without any financial problems, I mean they didn’t do well now,
and the university as a whole should to increase the students budget for practical attachment.

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3.8.2. I observed the solution for the problems during the practical attachment

I have worked my work more time by standing for the lack of seat.

I have told to branch managers these problems to be minimized. Through customer I have told to
them to fill criteria proper.

Reference

Annual report 2019/2020 Commercial Bank of Ethiopia

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Through interview from the staff

Mudaye Neway Nov 2009

Profile of Commercial Bank of Ethiopia

Website of the CBE; www.combank.et,http/www.CBE service/PROD/Browser Service/.

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