UNIVERSITY

COLLEGE OF BUSINESS AND

ECONOMICS OF ACCOUNTING AND FINANCE
ASSESSMENT OF CURRENT ASSET MANAGEMENT
IMPLEMENTATION (IN CASE OF DASHEN BANK AKSUM
BRANCH)

A RESEARCH PAPER SUBMITTED TO DEPARTMENT OF

ACCOUNTING AND FINANCE IN PARTIAL FULFILLMENT FOR
THE REQUIREMENT OF BACHELOR OF ART(BA) DEGREE IN
ACCOUNTING AND FINANCE

PREPARED BY: SERKALEM ANDUALEM

ID NO: 094666

ADVISOR: MAHARI R.(Msc)

MAY, 2019
AKSUM, ETHIOPIA

1
ACKNOWLEDGEMENTS
and for the most, I would like to Thanks to the Almighty God for his great love,
protection and help at every step in my life and success of my work. Without the help of
him I could never have been what I am today. Next, I would like to express my sincere
gratitude to my advisor Instructor MAHARI R.(Msc) for his patience and valuable
comments and directions that were very useful for completion of this paper. Besides, I
would like to thank Dashen bank Manager and the staff for their employees. I need to
express my deepest gratitude thank to my family for all their financial and moral support
in the completion of my university life. Lastly, but not least, my deepest gratitude thanks
goes to Aksum University in general, and Business and Economics College as well as
Accounting and Finance Department in particular.

ABSTRACT
This study was conducted on primary objective of current asset management
implementation on dashen bank in Aksum branch.
In this study only primary source of data are used and the researcher is use both open
ended and close ended questionnaires and structured interview to collect data from the
employee censes sampling technique to select target population among employee and
management body of dashen bank in Aksum branch The researchers were used
descriptive method of data analyzing and were use qualitative research approach.
The collected data are processed, analyzed and interpreted by using table, percentage
and frequencies and finally recommendation and conclusion will be forward on the
identified problem.

2
List Of Acronym

 CA- current assets

 PE-prepaid expenses
 MS- marketable security
 STI-short term investment
 TM- transaction motive
 PM- precautionary motive
 SM- Speculative motive
 AFS- available for sale

TABLE OF CONTENTS PAGE

CHAPTER ONE
INTRODUCTION
1.1 Background of the Study----------------------------------------------------------------------1
1.2 Statement of the problem---------------------------------------------------------------------1
1.3 Research questions ----------------------------------------------------------------------------2
1.4 objective of the study--------------------------------------------------------------- -----------2
1.4.1 General Objective------------------------------------------------------------------------------
2
1.4.2 Specific Objectives ---------------------------------------------------------------------------2
1.5 Significance of the study--------------------------------------------------------------------3
1.6 Scope and Limitations of the study-----------------------------------------------------------3
1.7 Organization of the
paper--------------------------------------------------------------------------3

3
 CHAPTER TWO
2. REVIEW OF RELATED
LITERATURE------------------------------------------4
2.1 Theoretical frame work of literature review-----------------------------------------------4

2.1.1. Historical development of current asset management implementation on global

level------------------------------------------------------------------------------------------------------
4

2.1 .2.Historical development of current asset management implementation on Africa

level------------------------------------------------------------------------------------------------------
4

2.1.3 Historical development of current asset management implementation on Ethiopia

level----------------------------------------------------------------------------------------------------5
2.1.3.1 Historical development of current asset management on Tigray level --------6

2.1.3.2. Historical development of current asset management implementation on Aksum

level------------------------------------------------------------------------------------------------6
2.2 Operational definition of literature review------------------------------------------------6
2.2.1 Definition of current
Asset----------------------------------------------------------------------6
2.2.2 Types of current
Assets--------------------------------------------------------------------------7
2.2.3 Importance of current Assets-----------------------------------------------------------------8
2.2.4 Current asset management and its benefits------------------------------------------9
2.2.5 Principles and components of current asset management--------------------9
2.2.6 Important of holding cash---------------------------------------------------------------------
10
2.2.7 Ways to minimize Cash holding------------------------------------------------------------
10
2.2.8 Short term investment management----------------------------------------------------10
2.2.9 Short term Credit management------------------------------------------------------------10

4
2.2.10 financial statement-----------------------------------------------------------------------------
11
2.2.11 Current Asset management implementation--------------------------------------12
2.2.12 Practical application of evaluating current asset------------------------------12
2.3 Empirical
Review--------------------------------------------------------------------------------------12
CHAPTER THREE
3. Research methodology and data gathering tools--------------------------------------13
3.1 Research
design----------------------------------------------------------------------------------------13
3.2 Data source and collection techniques------------------------------------------------------13
3.3 Sample techniques and sample size---------------------------------------------------------13
3.4 data process and analysis tools -----------------------------------------------------------------
14

CHAPTER FOUR
DATA ANALYSIS AND DISCUSSION OF
RESULTS--------------------------------------15
4.1.
Introduction---------------------------------------------------------------------------------------16
4.2 Respondent characteristics----------------------------------------------------
17
4.2.1 Respondent
rate---------------------------------------------------------------------------------------17
Analysis of interview
response------------------------------------------------------------------------18
CHAPTER FIVE
5. CONCLUSSION AND
RECOMMENDATION----------------------------------19
5.1
CONCLUSSION------------------------------------------------------------------19

5.2RECOMMENDATIONS-------------------------------------------------------
20
REFERENCES

5
List of tables
Table 4.1 Gender of employee.................................................................................................................. 14
Table 4.2 Age of employees...................................................................................................................... 14
Table 4.3 Educational level of employees.............................................................................................. 15
Table 4.4 Work experience employee..................................................................................................... 16
Table 4.5 what are the major types of current asset of branch bank?.............................................................. 16
Table 4.6 which one is not the major types of current asset of branch bank?-----------------------17
Table4.7The Current asset management of the bank is efficient?---------------------------------18
Table 4.8 Does the bank have current asset management system?-----------------------------------18
Table 4.9 is there any benefit from the management of current asset----------------20
Table 4.10 Do you think current asset management of the bank is efficient?..................................................20
Table 4.11 which current asset is mostly used by your customer?.................................................................. 21
Table 4.12 what is the more liquid able current asset in your bank?-----------------21
Table 4.13 which types of marketable security used in your bank?................................................ 22
Table4.14 which types of cash used in your bank?.............................................................................. 23
Tablet 4.15 what are the techniques or policy you will recommend for better management
of current asset
Table 4.16 does your bank provide adequate training about current asset management
.
Table 4.17 is there any cost associated with the extension of the credit granted by the
bank ..
Table 4.18 is there benefit your bank gain due to extension of credit
..

CHAPTER ONE

INTRODUCTION

6
1.1. Back ground of the study
Asset any physical thing (tangible) or right (intangible) that has a monetary value. Asset
is properties owned by the business enterprise and the sum of liability and owner equity
(liability+ owner equity). Asset classified in to two. These are fixed (long term) and
current (short term) (intermediate Accounting 6TH Ed 1998).
Current assets is cash and other assets that may reasonably by expected to be realized in
cash or sold or used up usually with one year or less through the normal operation of the
business. In addition to Cash the current asset usually owned by a service business are
note receivable, account receivable, supplies and other prepaid expenses intermediate
Accounting 6TH Ed 1998).
Current asset management is handling of the current asset of a bank. Any asset that a
banker has that is the equivalent of cash or can be liquidated in to can in the period of a
year is considered a current asset. The management of current asset is an essential part of
the banks short term planning process. According to Martin, (2003) in line with this ideas
Stephen, 1987 banks are expected to undertake effective asset management particularly
current asset management because current asset are the basic for the existence of
customer banking system.

In the bank context current asset include currency, checking accounts, petty cash, short
term marketable securities, letter of credit which is useful for easy and accessible
transaction by enhancing ordinary day to day work of the bank. It also intern and
maturates banking process of saving and promotes investment. Thus the realization of
Bankers performance and development is strong linked with various factors like banking
policed banking technology resource asset management bank (IP Pandey, 1999). In order
to survive and full fill the objective and obligation of financial intermediary like dash
bank as particularly must manage their current (Bingham E,1995).

1.2 Statement of the Problem

A current asset(CA)is cash and any other asset that can be converted to cash within one
year from the shown in the heading of the bank balance. According to Chaster ,(1998)
current asset are important to bank because they are the asset that are used to fund
operation and pay any ongoing expelled. Current asset used to enhance the day to day
activity of the bank making the transfer and borrowing activity much faster (Abuzayed,
M.2011).It is important that the amount of each current asset will not be overstated. For

7
example current asset of the bank and short term investment will be valued properly
because the amount of banking working capital and its current ratio are computed using
the amount current assets reported (Hughes & Macdonal, 2002).
Banks have dominated the financial land scap and have traditionally been innovators as
well as movers in transferring funds from surplus units to deficit unit who have profitable
idea. To full fill their responsibilities and accountability banks required good current
asset management system unlike other financial institution bank more likely to fail due to
liquidity problem this is being unable to honor their promise to redeem deposit demand
and lack of adequate liquidity is often one of the first sign that a bank is in serious
problem.
The other problem is the society’s bad habit of credit. Due to this, the bank ’s loan
portfolio quality becomes bad. The major reasons behind this are the fact that borrowers
default because of loan diversion and misuse.
Therefore bank may begin to use deposited which limit its supply of cash force the
institution to deposit and its more liquid asset (Stephen & Rose,1999). Therefore this

study tries to asset management of current assets on dasheen bank of Aksum branch.

1.3. Research questions

This research paper would be attempted to respond the following research questions.
1. What are the major types of current asset in the bank?
2. What is the overall liquidity position of dasheen bank Aksum Branch?
3. What is the practical application of evaluating current asset management
implementation?
1.4 Objective of the study
1.4.1 General objective (GO)
The overall objective of this study would be to assess the current asset management
implementation of dashen bank Aksum Branch.
1.4.2 Specific objective (SO)
1. To identify the major types of current asset in the bank
2. To assess the overall liquidity position of dasheen Bank Aksum Branch
3. To investigate the practical application of evaluating current asset management
implementation

8
 1.5 Significance of the study

The study would be attempted to assess the current asset management implementation of
dashen bank in Aksum Branch. Findings of study may help to identify and solve the
major current asset management. It may help policy makers of the bank to design strategy
which can promote management of assets.
It is also hope full that this study as around for further research finding in the area as
reference and to provide data this helps to identify the impact of current asset on banking
operation.
1.6 Scope of the study and Limitation of the study
The scope of the study would be focused only assessment of current asset management
implementation of dasheen bank Aksum Branch. There are so many banks which are use
current asset due to shortage of time and cost , this study would be limited only the
dasheen bank and would be considered in this study which creates concern in
understanding applying appropriate solution for the problems raised in the finding of this
study. These may limit the findings of the researcher faces different limitations to
complete this study. From this limitation some of them are listed below.
According to the information from Dashen bank in Aksum branch, the total target
population is 9, it indicates that the target population is very small. So, the researchers
have used census techniques. However, the study limited by this techniques because the
number of target population is less than 50. In this case the researchers faces shortage of
sufficient necessary information. And also the questionnaires are answered by primary
and secondary source of data.
1.7 organization of the paper
This study would be organized in to five chapters. The first chapter deals with
background of the study, statement of the problem, objectives of the study, significant of
the study, scope of the study, limitation of the study and organization of the paper, the
second chapter focus on the review of related literatures, theoretical review, empirical
review, operational definition of literature.
The third will include the research methodology, research design, target group/
population, sampling technique and sample size, data presentation and analysis method.

9
Collected data are under chapter four. Finally, the fifth chapter includes the study with
the summary of findings, conclusions and recommendations.

CHAPTER TWO
2. REVIEW OF RELATED LITERATURES

10
2.1 Theoretical frame work of literature review
2.1.1. Historical development of current asset management on global level
The global asset management industry can be divided in two broad categories, namely
institutional asset management and retail asset management. These two categories have
fairly different cost characteristics, productivity metrics and risk metrics. The institutional
asset management groups include traditional investment advisory firms. The new reality
has forced asset managers to develop a much stricter discipline with regard to their
Operational processes (Raheman ,2007).
Recently in developing countries, the central issue of economic development is the
problem of mobilizing or allocating resources for growth in such a way that growth
becomes sustained. it is obvious that the growth of production is mainly determined by
the rate of capital formation (Krueger,2005). Capital investment raises productivity and
productivity in turn initiates development, which is great concern of every country. Any
rise of the investment rate requires proportion of aggregate production of the national
product to be saved. Subjected to the low level of income in developing nations, it is
difficult to raise the rate of net domestic savings in the short run in the long run, however,
the intermediation process of financial institutions there is more reliance on domestic
savings which lies on the rate of financial institutions particularly banks in attracting
saving from the public channels in to productive involvements (Taye, 2010).

The type of national economic system that characterizes developing countries plays a
crucial role in determining the nature of the banking system in those countries. In
capitalist countries, a system of private enterprises in banking prevails. In state-managed
economies, however, banks have been nationalized. In Egypt, Peru and Kenya,
government and privately owned banks coexist. In many countries, in which the banking
system developed under colonialism, the banks were owned by institutions in the parent
country. In some countries, such as Zambia and Cameroon, this heritage continued,
although modified after decolonization. In other nations like Nigeria and Saudi Arabia,
the rise of nationalism led to ownership by majority of indigenous population ( Taye,
2010).
2.1.2. Historical development of current asset management on Africa
level

In Africa if money is essential for developing into a modern economy, a banking system
is almost as important. Nearly a thousand years ago, bankers began holding money for
depositors, and eventually creating new kinds of money to satisfy the growing needs of
an expanding economy (Carty, 1982).

In Africa any individual or firm, including a banking firm, an asset is any item legally
owned by that person or business that has a market value. For instance, when a Dashen
bank makes a loan to a business, that loan represents a legal obligation of the business to
repay the loan principal and interest to the lending bank within the specified period.
Consequently, the loan is an asset of the bank (Miller and Vanhoose, 1993).

11
Miller and Vanhoose categorized the key assets of Dashen bank in to three, which are
short term loans, securities, and cash assets. Loans include commercial and industrial
loans, real estate loans, consumer loans, and very short term loans that banks make in the
federal funds market or through purchases of repurchase agreement. Securities include
government securities and municipal and state bonds. Cash assets include vault cash,
reserve deposits at Federal Reserve banks, correspondent balances, and cash items in the
process of collection.
Therefore, asset growth can be considered as another important measure of performance.
Measuring the growth or decline of banks’ assets over time provides a reasonable
indicator of both their current and long term performance (Dagmawi, 2011).

2.1.3. Historical development of current asset management on Ethiopia

level
In Ethiopia level dashen Bank plays a major importance in disbursing loans and
advances, mobilizing capital, and enabling the rural people to save through reaching them
by opening branches from time to time. in addition to these, however, Dashen bank also
helps the economy by creating employment opportunities, giving loans to entrepreneurs
and hence promoting innovation, and In general it gives sector specific loans to different
sectors of the economy( Chasten, 1998).

In Ethiopia the service of the financial crisis of 2008 and 2009 and it's impact asset
management has left academics and practitioners in Ethiopia state of some confusion
questions abound. For any individual or firm, including a banking firm, an asset is any
item legally owned by that person or business that has a market value. For instance, when
a commercial bank makes a loan to a business, that loan represents a legal obligation of
the business to repay the loan principal and interest to the lending bank within the
specified period. Consequently, the loan is an asset of the bank (Miller and vanhoose,
1993).

According to Miller and Vanhoose ,(1993 ) categorized the key assets of in Ethiopia in to
three, which are loans, securities, and cash assets. Loans include commercial and
industrial loans, real estate loans, consumer loans, and very short term loans that banks
make in the federal funds market or through purchases of repurchase agreement.
Securities include government securities and municipal and state bonds. Cash assets
include vault cash, reserve deposits at Federal Reserve banks, correspondent balances,
and cash items in the process of collection.
Tewedros (2007) tries to see the performance of Dashen Bank and its role to the
Ethiopian economy by considering deposit mobilization and credit allocation by the bank.
But measuring performance of a bank by using deposit mobilization and credits provided
ignores other performance of the bank like profitability and branch expansion.
2.1.3.1. Historical development of current asset management on Tigray
level
In Tigray Dashen Bank is expanding its branches, its profit is increasing from time to
time, the amount of capital disbursed and total capital is also growing since its

12
establishment, it faces variety of problems. These problems were presented in different
ordinary and extra ordinary general meetings of shareholders. These challenges will be
discussed by dividing them in to internal and external as follows. The internal problems
occur within the bank and can be addressed by the banks managerial staff. On the other
hand, external problems occur in the banking industry and specifically affect Dashen
Bank directly or indirectly.

2.1.3.1. 1. Historical development of current asset management on Aksum level

In Aksum level current asset in dashen Bank is expanding its branches, its profit is
increasing from time to time, the amount of capital disbursed and total capital is also
growing since its establishment, it faces variety of problems. These problems were
presented in different ordinary and extra ordinary general meetings of shareholders.
These challenges will be discussed by dividing them in to internal and external as
follows. The internal problems occur within the bank and can be addressed by the bank
managerial staff. On the other hand, external problems occur in the banking industry and
specifically affect Dashen Bank directly or indirectly.

2.2. Operational definition of literature review

2.2.1 Definition of Current Asset

A current asset is cash and any other banks asset that will be turning to cash within one
year from the data shown in the heading of banks balances sheet. On a bank balance that
means they will appear in the following order ( Rose, 1998). According to Chaster
(1998), cash (which includes currency, checking accounts, petty cash) temporary
investment supplies will be literally converted to cash). They are included cash for these
items during the bank to avoid paying cash these items during the upcoming year. Cash
that is constantly following in and out of bank in the normal course of its business as cash
is converted in to goods and then back in to cash (Eugene & Bringham,2001).In
accounting any asset expected to last or be in use for less than one year is considered as
current asset also called circulating assets. According to Bringham, (1995) current asset
also some time called gross working capital compress. Those assets that are relatively
liquid that is those that are expected to be converted in to cash (Nasr, 2007).
In personal finance current assets are all assets that a person can readily converted to cash
to pay outstanding debts any cover liability with out to sell
Fixed asset (IMPandy,2004).

13
Current Assets are the group of liquidity assets that controlled by entity and have useful
life less than one year. Some current assets are expected to be used and converted
into cash less than one year (Lazridis, 2006).
The current assets include petty cash, cash on hand, cash in bank, cash advance,
short term loan, accounts receivables, inventories, short term staff loan, short term
investment, and prepaid expenses (Tryfonidis, 2006).
For example, accounts receivable are expected to be collected as cash within one
year. Do so inventories, they are expected to sales to customers and concerted into
cash within one year.
2.2.2 Types of current Assets
Current assets primary include cash and cash equivalent, marketable securities and
prepaid expenses (Keown & Manin,2003).

1. Cash and cash equivalents

Cash is asset that is readily convertible into any type of asset it is easily canceled and
translated and it is highly desired. Because of these chrematistics cash is the most
transaction numerous errors may in executing and recording cash transaction. To
safeguard cash and assure the accuracy of accounting records for cash, effective cash
management is imperative. Cash consists of coins check currency (paper money) check,
money orders, money deposited at bank. Items such as postage stamps and postdated
checks (checks payable in the future) are not treated as cash. According to Bringham,
(1995) stated that cash is physical currency printed on bank notes and coins cash may be
exchanged for goods or services because it is legal tender in the country or region
recognizing it. Cash is an asset that is currency on hand in checking account balances s a
non-earning asset first usually attempt to keep their cash balances to the minimum level
required to sustain operations (Filbeck,2005).
Cash equivalents are the most liquid current asset money that can be withdrawn from a
regular bank account or money market account qualified as cash. Asset that can be
quickly converted into cash such as treasury bills any short term municipal bonds are
cash equivalents. Two general criteria For determining if a current asset is a cash
equivalents is if it matures in less than three months and if it can be converted quickly

14
(ImPandy, 2004).company must disclose any restrictions or commitments related to the
availability of cash.
- Companies restrict cash to meet an obligation due currently. Therefore, this restricted
cash should be included under current assets.
- If a company restricts cash for Purposes other than current obligations, it excludes the
cash from current assets and include under other assets.

2. Short term marketable securities (STMS)

(Short term investments)
Short-term investments that mature in over three months but under a year also considered
a current asset. Banks has more money on hand than it needs for the near future, If may
invest some of its cash in a short term bond (Ford F,1989).
These funds can be liquidated, but it takes more effort than witdrawing cash. The banks
money has working front and increasing the overall revenue ( Ashraf,2008).
-Marketable securities (MS) are temporary investment that one bank might make in
another banks with the hope of providing high return to its bankers.
-short term investment classified in the balance sheet as current asset must be readily
salable and should not be held for purpose of encouraging business relation with the
issuing banks( Sinkey, 2000).
Companies group investments in debt and equity securities into three separate portfolios
for valuation and reporting purposes:
1. Held to maturity: Debt securities that a company has the positive intent and
Ability to hold to maturity.
2. Trading: Debt and equity securities bought and held primarily for sale in the near term
to generate income on short-term price differences.
3. Available for sale (AFS): Debt and equity securities not classified as held to
maturity or trading securities.
- A company should report trading securities (whether debt or equity) as current assets.
3. Prepaid expenses (PE)
A prepaid expense (PE) is considers asset because it reduces the amount of future

expense. Generally a banker can pay in an advance for advertising services (Koch, 1995)

15
It may also choose to purchase more supplied than currently needed these are examples
of prepaid expenses although these are really liquated asset, they do not reduce future
expense less expense in the future can equal a better revenue bottom line(Rose, 1999).
Prepaid expenses are expenses that been paid in advance. These asset are record on the
balance sheet and expensed on the income statement as they are used (known, martin, &
Petly, 2003).prepaid expenses are payments of cash that is recorded as an asset because
service or benefit will be received in the future. accompany includes prepaid expenses in
current assets if it will receive benefits (usually services) within one year or the operating
cycle.a company reports prepaid expenses at the amount of the unexpired or unconsumed
cost .a common example is the prepayment for an insurance policy. a company classifies
as a prepaid expense because the payment precedes the receipt of the benefit of coverage.

4. Receivable classified in to two.

Receivable includes money claims against people organizations and acquired by a
business enterprise in various kinds of transactions.
1. Account receivable 2. Note receivable
1. Account receivable (AR) are also claims against debtors, but are less formal than
notes, they arise from sales of services or merchandise on account.
Receivable includes money claims against people organizations and acquired by a
business enterprise in various kinds of transactions.
2. Note receivable (NR) are claims against debtors, but evidenced by a written promise to
pay a sum of money at definite time to the to the order of specific persons.
5. Inventories
In a merchandising company consists of all goods owned and held for sale to customers.
Inventory is expected to be converted in to each with in the company's operating cycle. In
the balance sheet inventory is listed immediately after accounts receivable. Because it is
just one step farther removed from conversion in to each than customer receivables
(William, 2006).
Inventories consists of goods held for sale to customs partially completed goods and
materials and supplies to be used in production inventory items are acquired and sold
continuously by a merchandising enterprise or acquired placed in production, converted

16
to a finished product, and sold by a manufacturing enterprise. The sale of merchandise of
finished products is the primary source of revenue for non-service business enterprises.
In a retail or merchandising operation inventories consist principally of products
purchased for resale in their existing form a retail enterprise also may have an inventory
of supplies such as wrapping paper, cartons and stationery.
A manufacturing enterprise has several types of inventors as material parts and factors
supplies goods in process and finished goods (Intermediate Accounting 6TH ED 1998).

- THE PURPOSE OF INVENTORY

Inventory is considered waste however inventory next where an organization suffers from
poor cash flow or lacks strong control over (i) Electric information transfer among all
department and all significant suppliers (ii) Lead times and (iii) Quality of materials
received. Inventories play important rules. Some of the make important reasons for
obtaining and holding inventory's are;
- Predictability: In order to engage in capacity planning and production scheduling you
need to control how much raw inventory buffers what you need from what you process.
-Fluctuations in demand
A supply of inventory on hands is protection for don't always know how much you are
likely to need at any given time, but you still need to satisfy customer or production
demand on time. If you can see how customers are acting in the supply chain surprise in
fluctuations in demand are held to a minimum.
6. Supplies
A current asset representing the cost of Supplies on hand at a point in time, in account is
usually list on the balance sheet after the Inventory account.
A related account is Supply expenses, which appears on the Income statement. the
amount in Supplies expenses account reports the amounts of supplies that are used during
the time interval indicated in the headings of the Income statement.

2.2.3 Importance of current asset

Current asset are important to bank because they are the assets that used to fund day to
day operations and pay ongoing expenses. Depending on the nature of the bank, Current
assets are important because they indicate how much cash a bank essentially they indicate
has access to within the 12 months outside of third party source. It is indicative of how
the banks found its ongoing day to day operation and how liquid atrium is the ration of
current assets to current liabilities is particularly important in judging liquidity,
17
Current asset on an accounting balance sheet represent the total value of all assets that
can readily be converted to cash (Chaster, 1998).

2.2.4 Current asset management and its benefits

According to Cooley, (1994) current asset management is concerned with the problem
that arise attempting manage the current asset/ main kinds of current assets cash, short
term investments and prepaid expenses/ and inter relationship that exist between them.
Current asset management is the handling of the current assets of a bank. Any asset that a
banker has that is the equivalent of cash or can be liquidated in to cash in the period of a
year is considered a current asset.
Typically, current assets are the any short term investment current assets are cash and
other asset that can be reasonable expected to convert to cash or consumed during one
year (Hughes & Macdonald, 2002).
Current asset management policy of firm has a great effect on its profitability, liquidity
and structure healthy of the banks (Rose, 1999).
2.2.5 Principles and components of current asset management.

According to Koch, (1995) the main principle in current asset management is to proper
flow of income and liability in balance managing current assets also takes in to account
the long term invests of a banks but short term assets determining the liquidity of a
banker.
The following are the general principles of current asset management.
Principle of risk variation
Risk have refers to the ability of bank to meet its obligation and when they become due
for permanent. Larger investment in current assets become less dependence on short term
borrowing increase liquidity reduce risk and there by decrease the opportunity for gain or
loss principle of equality position.
The principle is concerned with planning the total investment in current asset.
Principle of maturity payment
This principle is concerned with planning the source finance for current asset and the
components comports comprise

18
Cash management
Cash is one of the current assets of banks. It is needed at all to keep the bank going. A
banks concern should always keep sufficient cash for meeting its obligation.
Management of cash is a means of acquiring goods and services.
The cash management of cash generally centered a forecasting and internal control. the
responsibilities of management with respect to cash are to assure that there is sufficient
cash to carry on the operation to invest any due to prevent loss of cash due to miss
appropriation(Hughes & Macdonald, 2002).
For some person cash manage money in the form of currency or each in hand for other
person cash both cash in hand cash in bank. In a banker there are motivates for holding
cash.
Transaction motives (TM)

Transaction motive refers to the holding of cash to meet routine cash requirement to
finance the transaction which a bank carries on in the ordinary courses of business
Precautionary motives (pm)
The current balance held in resource for uniform seen fluctuation in cash flows is called
precautionary balances. In other words precautionary motive of holding cash implies the
need to hold cash to meet unpredictable obligation.
Speculative motive(SM)

If refers to the desire of firm to take a downstage of opportunities which present

themselves at unperfected moment and which are typically outside the normal course of
banks (martin, petty, Scott, JR, 2003).

2.2.6 Important of holding cash

1. Transactions; must have some cash to operate.
2. Precaution safety stock Reduced by line of credit and marketable securities.
3. Compensating balances for loans and/or services provided.
4. Speculation to take advantage of bargains and to take discounts. Reduced by credit
lines and marketable securities.

2.2.7. Ways to minimize cash holding

19
- Use a lockbox
- Insist on wire transfers from customers
- Synchronize inflows and outflows
- Use a remote disbursement account.
- Increase forecast accuracy to reduce need for "safety stock" of cash.
- Hold marketable securities (also reduces need for" safety stock”).
- Negotiate a line of credit (also reduces need for (" safety stock").
2.2.8. Short- term investment management
Short term investment is an account in the current in the current assets section of a banks
balanced sheet.
This account contains one year. For the most part these accounts contain stock and bonds
that can be liquidated fairly quickly. Most bankers in a strong cash position have a short
term investments account on the balance sheet. This means that a bank can afford to
invest excess cash in stocks and bonds to higher interest that will be earned from a
normal Saving account.

2.2.9 Short term Credit management

According to Neveu, (1985) Credit management refers to a function performed within a

bank to improve and lower credit policies that will lead to increase revenue and lower
risk including increasing of collection, reducing credit costs, expanding more credit to
credit worthy customers and developing competitive credit terms. Credit management is
implementing and maintaining asset of policies and procedures to minimize the amount
of capital tied up in cheater and to minimize the exposure of the business to bad debts
(Champers, 1994).

Once customer requests a loan, bank officers analyze all available information to
determine whether the loan meets the banks risk return objectives. Banks get information
on borrowers through various sources such as: Loan application, borrowers account with
the bank of statement of account with other banks statement of assets and liabilities.

2.2.10 financial statement

20
In financial statements, these group of assets are records in balance sheet and showing the
value at the end of reporting date. The following are an example of the list of current
assets that normally occur or report in financial statements petty cash, cash on hand, cash
advance and short term loan etc.

2.2.11 Current Asset management implementation

Current asset management implementation is a time frame for each of the improvement
activities/tasks, taking into account several factors to objective of asset management.
Banks derive most of the profit from interest differences that exist between deposit rates
and the lending rates. Banks can also attract potential savers by increasing deposit rates
and oppositely attract investors by lowering lending rates. These methods can be used as
a marketing strategy if interest rates are set by the banks themselves or are not regulated
by the central bank.

2.2.12 Practical application of evaluating current asset

Practical application of evaluating current asset the bank managers attempt to maximize
shareholders wealth. In effect, bank managers create both risks and returns for the banks
shareholders when they provide financial service. A bank
Manager can select some asset liability portfolio that has a higher potential return but is
more risky, or the manager can select a different asset- liability portfolio that is less risky
but earns a lower rate of return. Therefore, the equality of the banks’ management in
decision making is also important factor in making a difference in the banking industry
(Asrat, 2006).
“Provide efficient and customer oriented domestic and international banking services,
overcoming the continuous challenges for excellence through the application of
appropriate technology”.

2.3 Empirical Review

According to Yibza (2014), assessed the bank more likely to detail due to liquidity
problem this is being unable their promise to redeem deposit demand, lack of
adequate liquidity is often one of the first sign that a bank is in serious problem.
Therefore, bank may begin to use
Deposited which limits its supply of cash and for the institution to depose and fits more
liquid asset.

21
According to Emanuel, (2015) argued that the fundamental objective of asset
management is to maximize the benefits of the users while minimizes operating cost of
bank Source ,Guideline on Better Asset management .Assessed there are four key
components to any comprehensive asses management system which are, methods of
assessing current conditions and performance , A process to determine and evaluate
future system need tools, to evaluate and select appropriate strategies to address current
and future needs, methods to evaluate the effectiveness of each strategy.

Melees J , (2015) Assessed by using different factors the study will use to collect reliable
and accurate data from selected sample of the targeted group population and come up
with the available findings.
According to site study Endalekachew, (2014) assessed by study of current assets used to
enhance the day today activity of the bank making the transfer and borrowing activity
much faster. It is important that the amount of each current asset will not be over stated.
Banks have dominated the financial landscape and have traditionally been innovators, as
well as movers in transferring funds from surplus units to deficit units who have
profligate idea. To fulfill their responsibilities and accountability banks require good
current asset management system.
Based on the findings of the study, the study will be like to forward the followings
recommendations.
The result of the study revealed that the change of policy of the bank affects asset
management. This affects customer satisfaction in getting services.
Therefore, it is important to the branch to consider its internal and external market

environment.
From the findings of the study, internal audit it is one of the factors that affect the

managing system of the current asset of the bank.

22
CHAPTER THREE

RESEARCH METHODOLOGY
3.1 Research design
A research design is the programmer that guides the researchers in the process of collecting,
analyzing and interpreting the data. The researcher would be used descriptive form of research
design to provide solutions to the research problems. Descriptive research involves gathering data
that describe events and then organizations tables depicts and describes the data collection .
3.2 Data source and collection techniques
Both primary and secondary data source would be used in the study. The primary data
sources are employees in the cash and marketable securities department and manager.
The secondary data sources are financial statement, document and printed material. For
this structural primary data would be collected using questionnaires. In the questionnaires
the study would be used close ended and open ended Questionnaires in such as a way that
they should generate Important Information of management system of current asset close
ended question will help to get target answers. Open ended question also the study to
collect data more than expectation.

3.3 Sample techniques and sample size

The total target population of Dashen bank Aksum branch is only 9 employees ,from
those target population the researchers select all respondents in the same size by using
census servey, because the number of population so small in number. The reason behind
using this technique is: to get relevant and sufficient information, to get more information
and minimize risk, it enables the researchers to freely select the respondents who fit for
this question.

3.4 data process and analysis tools

In this study descriptive analysis would be chosen because of its simplicity and clarity to
draw inferences, analyzed and presented by using percentage, frequency and supported
by tables.
To achievement the objective, specifying data approach is important. There for the study
would be used both qualitative and quantitative data approach. The reason to use
qualitative data approach is to assess current asset management implementation of the
Aksum Branch, Qualitative data are important tools and some data are expressed in
words such as short written responses on surveys and interview. The reason for the use of
quantitative data approach is some data which give important information about current
asset management can be expressed numerically.

23
 CHAPTER FOUR
DATA ANALYSIS AND DISCUSSION OF RESULTS
4.1. Introduction
This part of the paper contains data presentation; interpretation and analysis using tables
and percentage. The questionnaires were distributed to 9 salary employees of the bank.
The questionnaires were distributed to employ filled and collected back for analysis to
conduct this study.
4.2. Respondent characteristics
This section presents information about the demographic characteristics of the
respondents in terms of age, gender, and educational background and study related.
4.2.1. Response Rate
The target respondents were employee’s dashen bank in Aksum branch, and 9
questionnaires were distributed for employees all questioners are completed and returned.
The response rate is 100 percent.
4.1 Distribution of respondent’s age, gender and educational background

Table 4.1.: Sex distribution of the respondent

Sex Frequency Percentage

Male 8 89%

Female 1 11%

Total 9 100%

As shown in table 4.1 from 9 respondent of 8 are male and 1are Female which means the
male take the majority number, in majority such that 8(89%) of the respondents were
male and 1(11%) of respondents were Female, from this analysis the researchers
recognize that the numbers of Male workers were greater than Female workers by More
than half, this implies, more half of the organizational work was performed by Male
workers.

24
Table 4.2: Age distribution of the respondent

Age Frequency Percentage

18-30 5 56%

31-40 2 22%

41-50 2 22%

Above 50 - -

Total 9 100%

As can be clearly seen the table (4.2) above questionnaire indicated that out of 9
respondents, 5(56%) of the respondents were placed in the age (18 – 30), 2(22%) of the
respondents were placed in the range of 31– 40 years and 2(22%) of the respondent were
placed in the age of 41-50 years and above 50 years have not the respondent because of
this, the branch have not above 50 years ago level employees.
This implies that, respondents with age between18-30 are greater in number in
organization and this age results profitability in the organization since they are matured.
4.3 Level of education

Response Frequency Percentage

Diploma - -

25
Degree 8 89%

Master 1 11%

Total 9 100%

As indicated in table (4.3) from this researchers recognize that the majority of the
workers are degree holders 8(89%) and only 1(11%) employee are Master. This insures
that, most of the employees are Degree holders, but this branch diploma employees have
not work at this time.
Table 4.4 Work experience

Response Frequency Percentage

1-5 5 56%

6-10 3 33%

11-15 1 11%

Above 15 - -

Total 9 100%

In the same analysis table 4.4 shows that majority of respondents 5 or 56% were in the
age group of 18-30 years and the rest of the respondents i.e.3 or 33% were in the age

26
group of 31-40.and The years and the result of the 1 or 11% were in the age group of
41-50. From this data we can infer that most of the workers of dashen bank in Aksum
branch are 5(56%) more work experience and respondent than others.
Part 2 General information dashen bank in Aksum branch

Table 4.5 what are the major types of current asset of branch bank?

Response Frequency Percentage

Cash 6 67%

Account Receivable 2 22%

-Short term investment 1 11%

Total 9 100%

From the above table 4.5 show that the respondents response said that, major types of
current asset included by cash 6(67%) the highest respondents response, the other
account receivable 2(22% ) and short term investment 1(11%) are the lowest respondents
response from the others.

Table 4.6 which one is not the major types of current asset of branch bank?

Response Frequency Percentage

Cash - -

Marketable securities 9 100%

27
Account Receivable - -

Short-term investment - -

Total 9 100%

From the above table 4.6 show that the major types of current asset not include 100% of
respondents response are reply that marketable security , the other cash, Account
receivable and short term investment are major types of current asset grouped.

Table 4.7 The Current asset management of the bank is efficient?

Response Frequency Percentage

Yes 9 100%

No - -

Total 9 100%

According to the above table 4.7 shows that 100% of respondents were reply that,
Current asset management of the bank is efficient in sufficiently. This shows that the
current asset management of the bank are completely efficient.

From the above table 4.7 the respondents were asked and in the response to 9
respondent’s i.e 9 (100%) were answered (replies) yes without reject. According to the
respondents response in Dashen bank current asset management were completely
sufficient.
# What are major factors that affect the management of current asset?
Factors affecting current asset management in dashen bank Aksum Branch are listed
below;
-Change of the policy of the bank
-Competitive existence of the market
- Interest rate
-Internal audit problem
-Lack of duty segregation
28
 -Unrelated time of customer loan return with duration time
-New policy of government to the private bank
-New polices, structures and orders provided by the banks
According to manager response, the bank faces different problems in managing current
asset like decrement in deposit or customers fails to deposit. Some customers fail to repay
loan on time and other related factors. Finding of this study indicates that current asset
management was affected in various was, some of them were explained above. One can
classify the above mentioned factors as internal and external factors. Among internal
factors the most significant one is changes in the policy of the bank.
Change in procedures and policy can change the overall activity of the banks so as to
current asset management.
Changes in policy can have an impact on investment in current asset which are securities
and the like. Among external factors internal rate and government regulation are the
major ones, because of being beyond the banks investment policy in short term securities
or current asset.

Table 4.8 Does the bank have current asset management system?

Response Frequency Percentage

Yes 9 100%

No - -

Total 9 100%

From the above table 4.8 the respondents were asked and in the response to 9 respondents
i.e 9 (100%) were answered (replies) yes without reject. According to the respondents
response Dashen bank of Aksum branch has sufficient current asset management
systems.

Table 4.9 is there any benefit from the management of current asset?

29
Response Frequency Percentage

Yes 7 78%
No 2 22%

Total 9 100%

Based on the above table 4.9 the respondent’s response that there are any benefit from
the management of current asset in dashen bank Aksum branch. As can be seen from
table 7(78%)of the respondents said yes to this question and the remaining 2(22% )the
respondents answer no(the current asset management have not any benefit), Even if
answered no to the above question, majority of respondents said yes that current asset
management has benefit. From this it can be concluded that the organization gets any
benefits by managing current asset properly because greater number of respondent’s
response it is possible.
Table 4.10 Do you think current asset management of the bank is efficient?

Alternative Frequency Percentage

Yes 9 100%

No - -

Total 9 100%

Based on the above table 4.10 shows that, 9(100%) respondents said yes ,the current asset
management of the branch was efficient. It is fully or properly that banks should have its
own current asset management system in order to achieve its aim (objective) and to
compute efficiently in the market. Manages its current assets effectively; this implies that
the bank has efficient utilization of its source of current asset. Among the benefits of
current asset management system, it can make quick responses for its challenge it faces
and can have sufficient fund for its operation.

30
PART 3: To assess the overall liquidity position of dasheen Bank Aksum Branch

Table 4.11 which current asset is mostly used by your customer?

Alternative Frequency Percentage

Commercial paper 1 11%

Cash equivalent 1 11%

Cash 7 78%
Short-term marketable -
security
Total 9 100%

On the above table 4.11 1(11%)of the respondents commercial paper and cash equivalent
that, similar to commercial paper the respondent response1(11%) current asset mostly
used by customers. while 7(78%) cash are the highest respondent from the others because
the customers mostly used current asset.
Table 4.12 what is the more liquid able current asset in your bank?
Alternative Frequency Percentage
Commercial paper - -
Short-term marketable - -
security
Cash 9 100%
if other - -
Total 9 100%

From the above table 4.12 show that 9(100%) of cash are more liquid able current asset
in the branch but commercial paper, short term marketable security have not respondent
response.

Table 4.13 which types of marketable security used in your bank?

Alternative Frequency Percentage

Treasury bill 7 78%

Commercial paper 1 11%

negotiable certificate of 1 11%
deposit

31
All above - -
Total 9 100%

On the above table4.13 7(78%) of the respondents said that Treasury bill are the major
types of marketable security used in the bank. 1(11%) of the respondent said that
commercial paper are the second types of marketable security used and 1(11%) of the
respondents responded that negotiable certificate of deposit the other types of marketable
security used in the branch. According to the above Treasury bill are the highest
respondent response from the others.
Table 4.14 which type of Cash used in your bank?

Response Frequency Percentage

Vault cash - -

Petty cash - -
ATM in cash 7 78%
deposit with domestic 2 22%
All are above -
Total 9 100%

On the above table4.14 7(78%) of the respondents said that ATM in cash indicated that
the highest respondent response from the others and the most usable cash in the branch,
2(22%) of the respondent said that deposit with domestic were the second types of Cash
used in the bank.

# What are the strategies used by the branch in marketable securities management? The
strategies in marketable securities used by the branch was to use electro banking or
technology.

Table 4.15 what are the techniques or Policy you will recommend for better management
of current asset?
Alternative Frequency Percentage

Related with cash 5 56%

management
Receivable management 4 44%

32
Marketable securities - -
management
Total 9 100%

Based on the above table 4.15 the respondents response the technique or policy
recommend better management of current asset, As can be seen from table 5(56%) of the
respondents said that related with cash management and the remaining 4(44%) the
respondents are receivable management but marketable security management have not
recommend better management policy. So that related with cash management technique
or policy will recommend for better management current asset than the others.
# How your bank manages control idle cash? Used to bank balance to develop liquidity
position of the bank and create check and balance.

Table 4.16 Does your bank provide adequate training about current asset management?

Alternative Frequency Percentage

Yes 9 100%

No - -

Total 9 9

Based on the above table 4.16 shows that, 9(100%)respondents said yes ,means the bank
provide adequate training about current asset management sufficiently, one of the
respondent have not reject(all are accepted).

# If your answer is yes What kinds of training?

Table 4.17 Is there any cost associated with the extension of the credit granted by the
bank?
Alternative Frequency Percentage

Yes 6 67%

No 3 33%

Total 9 100%

33
According to the above table 4.17 6(67%) of the respondents said yes means any cost
should be associated with the extension of credit granted by the bank. while remaining
3( 33% )of the respondents response said no means indicate that any cost should not be
associated with the extension of credit granted by the bank.
#If yes what types of cost? Variable cost and marginal cost and direct cost and indirect
costs.
Table 4.18 Is there benefit your bank gain due to extension of credit?
Yes 8 89%

No 1 11%

Total 9 100%

According to the above table 4.18 8(89%) of the respondents said yes means
Benefit of Dashen bank used to gain due to extension of credit. while remaining
1(11% )of the respondents said no means.or the bank as indicate that 89% of respondents
said that According their specification, collection charges and bad debt expenses are the
most common costs that the bank incurred due to gain extension of credit.
From this conclude that the bank gain benefit from extension of credit to customers. The
bank takes different measurements in order to extend its credit for customers.

Analysis of interview questions

To assess current asset management implementation of dashen bank in the researcher
interviews the manager of Aksum branch.
Question1. What kind of problems does the bank faces in managing its current
asset?
Regarding to proper management, regular training for the workers, feeling
responsibilities are the major problems that face the organization.
Question2.What are the techniques does the organization used to manage its current
asset? As the researcher gather information from the respondent the most technique that
the organization used to manage its current asset are by expanding cash issue center in a
well manner, by using lock box service involve the use of special post office box, by

34
identifying employees who control only the organization asset without additional worker
and by write code on every asset and sorting.

To assess loan processing and its management performance in DEDCSI, the researcher
interviews the manager of the edge humus branch.

Question3. What are the problem that the bank faces in liquidity position, short
term investment and credit management implementation?
As the researcher gather information from the respondents, majority of the respondents
responded that granting excess loan to customer and that customer not returning it at the
appropriate time, bank start losing its liquidity position is the one of the major problem, it
clearly affecting the operational aspect of the bank and when loan is unpaid timely its
lead to liquidity crisis and affect short term investment and eventually affects its profit.

Question4. What are the plans of dashen bank?

The bank has plan to maintain 50% of deposit for credit purpose, to increase amount of
limit immediately after dispatch, to decrease amount of limit immediately after idle
liquidity is recognized and recording their limit both if increase and decrease by using
different techniques. From those;
- Effective planning
-By decreasing cost expenditure and
-By using different proclamation, guideline and directives that force the
organization to assess the liquid asset.

CHAPTER FIVE
5. CONCLUSSION AND RECOMMENDATION

35
5.1 CONCLUSSION

Based on the findings of the study, the concluded the data gathered and analyzed as
follows.
The employee of the branch bank are well experienced in terms of work experience and
well trained in business related fields. They are much capable of doing the bank activities
efficiently. Employees also have a strong relationship with information system of
managing current asset. This affects current asset management implementation of the
bank positively i.e. employees ability can determine the current asset management
implementation of the bank.
The analysis implies that a major source of current asset is cash, marketable securities.
Which can be concluded as the bank uses cash and cash equivalents as a major source of
its current asset.
According to the study, efficiency of the bank current asset management implementation
is at good status. But the study concludes that asset management has numerous
weaknesses, which likely to affect its successful implementation of current asset
management system. Such weaknesses are poor integration of activities within
departments, lack of standardization in categorization/classification/ of assets, Lack of
current asset management system flexibility.
In relation to the liquidity performance of the bank has covered the current, net loan to
total deposit and borrowing ratios in which its liquidity performance is not that much
satisfactory when it compared to the budgeted liquidity.
Overall liquidity performance of the bank implies that it is affected by both internal and
external factors. To conclude factors which have impacts on the current asset
management system, they can be classified auditing and procedures of the bank are
internal factors. Factors which are beyond the banks control such as government
regulation and interest rate which restrict the banks operation are among external factors.
Customer who financed by the bank fails to repay at specified date can also limits the
banks operation.
5.2 RECOMMENDATIONS
Based on findings of the study, the researcher would like to forward the followings
recommendations.

36
The result of the study revealed that the change of policy of the bank affects asset
management. This affects customer satisfaction in getting services. Therefore, it is
important to the branch to consider its internal and external market environment.
From the findings of the study, internal audit is one of the factors that affect the
managing system of the current asset of the branch bank. This closely related to unrelated
time or late repayment of loan to the bank, audit department of the bank have to analyze
loan requests in proper manner ranging from interviewing the borrower to analyzing its
credit history.
In relation to the liquidity performance of bank, it should take different mechanisms in
order to maintain high current ratio in the coming years, such as increasing current asset
amount over its current liability by it have to invest in securities which can increase its
current asset amount. The current asset management system plan is subject to internal and
external review and independent audit.

REFERENCES

Bingham, E., F. (1995). Fundamentals of Financial Management (7th Ed). the Dryden
press: U. S. A
Champers, D. R and Lacy, N. J . (1994).Modern corporate finance, Harper Collins
College, New York
Chasten, F.; and Connor, O. (1998); Intermediate accounting (6th Ed); McGraw-Hill
Company; U. S. A
Cooley P. L , (1994); Business Financial Management (3th Ed); the Dryden press; U. S.A
Friedman, J. J. (1989); Money and banking (4th Ed); American banking association,
Washington D. C
Hampton J. J. (1989); Financial decision making (4th Ed); prentice-hall; Inc. USA
Hughes, J. E. and Mac Donald S.B (2002); International banking; Addison W; Boston
Koch, W. T. (1995); Banking management (3th Ed); the O. Press; New York
Ne r. P. (1985); Fundamental of managerial finance (2nd Ed); South Western publishing
company
Rose, P. S. (1999); Dasheen bank management (4th Ed); McGraw-Hill companies
Rose, S. A. (1998); Fundamental and corporate finance (4th Ed); McGrew

37
Sin, J. F. (2002); Dasheen banking financial management (6th Ed); McGrew-Hall; New
Jersey

APPENDIX
AKSUM UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF ACCOUNING AND FINANCE

A questionnaire prepared to collect data assessment of current asset management

implementation in the case study of Dasheen bank AKSUM branch.

Dear respondents this questionnaire is prepared to collect data for senior essay study
work in partial fulfillment of bachelor of Art Degree in Accounting and Finance on title
data assessment of current asset management implementation. Hence kindly request you
to answer the questions for the success of my study. The aim of the study is purely an
academic and be confident enough while responding for the questions it will be kept
confidential so. I kindly request you to share your ideas with out any doubt. Thank you in
advance for your cooperative in filling and returning back the filled questionnaire.

Please do not write your name on questionnaire paper in all where option available tike in
the appropriate book answer. For question that demand your opinion please try to
honestly describe as per the question on the space provide.

PART ONE personal profile of respondent

1.Sex. Male Female

2.Age. 18-30 31-40. 41-50 Above 50

3.Education status

Diploma Degree Masters

4. Work experience 1-5 6-10 11-15 Above15

38
 PART TWO questions about identify the major types of current asset in the bank

1. What are the major types of current asset of branch bank?

Cash Account Receivable short term investment

2. Which one is not the major type of current asset of branch bank?

Cash marketable securities Account Receivable

Short term investment
3. The current asset management of the bank is efficient?

Yes No
4. What are major factor that affect the management of current asset------------------------
5. Does the bank have current asset management system?
Yes No
6 Is there any benefit from the management of current asset?
Yes No
7. Do you think current asset management of the bank is efficient?
Yes No

PART 3 Aquestions about asses the overall liquidity position of Dashen bank Aksum
branch
8. Which current asset is mostly used by your customers?
Commercial paper Cash equivalent Cash
Short term marketable
9. What is the more liquid able current asset in your bank?
Commercial paper Short term marketable security
Cash If other
10. Which types of marketable securities used in your bank

39
Treasury bills commercial paper negotiable certificate of
deposit all above
11. which type of cash used in your bank
Vault cash petty cash ATM in cash deposit
with domestic all are above
PART 4 QUESTIONS ABOUT INVESTIGATE THE PRACTICAL APPLICATION
OF EVALUATING CURRENT ASSET MANAGEMENT IMPLEMENTATION

12 . What are the strategies used by the branch in marketable securities management?
--------------------------------------------------------------------------------------
13 . What are techniques or policy currently used by your bank for better management of
inviolacy?
Economic order quantity ABC Technique
Just in time stock level all above
14. What are the techniques or policy you will recommend for better management of
current asset?
Related with cash management Receivable management
Marketable securities management

15. How your bank manages control idle cash?

------------------------------------------------------------------------------------------------------------
--------------------------------------------------
16. Does your bank provide adequate training about current asset management?
Yes No
17. If your answer is yes what kind of training?
cash ATM in cash deposit with domestic
all are above
18. Is there any cost associated with the extension of the credit granted by the bank?
Yes No
19. If yes what type of
costs------------------------------------------------------------------------------------------------------
-----

40
20 Is there benefit your bank gain due to extension of credit
Yes No
INTERVIEW QUESTION
21.What kind of problems does the bank faces in managing its current asset?
22.What are the techniques does the organization used to manage its current
asset?
23. What are the problem that the bank faces in liquidity position, short term
investment and credit management practice?
24. What are the plans of Dashen bank?

41
42
43
.

44
45
46
47
48
.

49