ADMAS UNIVERSITY KALITY CAMPUS

DEPARTMENT OF AcFn
INTERNSHIP FOR FINANCE REPORT

COMMERCIAL BANK OF ETHIOPIA,JATE

BRANCH

NAME........................................................ID
-Muluken Melku 0522/19
Submittedto:Ms Eden.G
Submission date:Sep28
Statement of Declaration

The undersigned, declare that this internship paper is my original work,

prepared under the guidance of the campus guideline. All sources of materials
used for this term paper have been duly acknowledged .

Student name: Muluken Melku signature__________________

Date_________________ 2

Advisor Name: Ytbarek Hailu

Signature-

Date-
Acknowledgments

First and foremost, I would like to thank the Almighty God who gave me the
courage through his endless love and blessings that helped me in finalizing this
internship study. Next to him, I thank his mother Saint Mary. She pray, bless,
protect and intercede for us. Secondly, I would like to express my genuine thank to
my advisor,Ytbarek hailu , for his comments, advice and inspiration. I am also
indebted to the employees of the selected banks i.e commercial bank of ethiopia
jate branch. who share their views with me during the internship work,collection of
data and questioner session. The moral support and understanding committed to
me and also my family members and friends while during the work was really
tremendous.

ABSTRACT

Commercial bank of ethiopia is one of ahuge bank in ethiopia by its number of

employees and by its capital.i'm woking my internship for finance apparent work
on CBE jate branch.this term paper contains firsty the background of CBE i.e
establishment date,how much employees the bank have,their
capital,Mission,Vission,Objectives,its core values,its product and service
provides,secoundly.The main point of this term paper is SWOT analysis w/c states
the strength,weakness,opportunities,and threat of the bank,thirdly.the last and the
reason for apparent of internship i.e why iselect CBE,what challenges i faced
during the task i excuted in the bank,lastly contains recommendation parts.

Table content pages

Chapter 1:introduction................................................................................

1.1 background of the organization.............................................

1.2 Mission,vision,core values.....................................................

1.3 organizational structure........................................................

1.4 product and services.............................................................

1.5 main customers or end user of their product&services.....

1.6 work flow of the organization...............................................

1.7 SWOT analysis.......................................................................

Chapter 2:Over all experience of internship work....................................

2.1reason for the selection of the company...............................

2.2 section of the company working on......................................

2.3 major function undertaken in selected section....................

2.4 challenges and problems faced.............................................

2.5 measures resolving the problems..........................................

2.5 Recommendation for the problem.......................................

Chapter 3:Benefits gained from the internship.........................................

3.1General benefits gained.........................................................

Chapter 4:Recommendation and conclusion

4.1 conclusion ..........................................................................

4.2 recommendation................................................................

CHAPTER 1 : INTRODUCTION

Financial institutions: are institutions which serve as intermediaries by

channeling the savings of individuals, businesses, and governments into loans or
investments. the role of financial institutions can be seen as : reduce transaction
costs by specializing in the issuance of standardized securities, reduce the
information costs of screening and monitoring borrowers, risk management, asset
transformation.

Based on how they perform their role of channeling money we can classify them
as: depository financial institutions and non- depository financial institutions.
Depository institutions: are those institutions which take and accept deposit from
surplus units (individuals, business and government). E.g. commercial banks,
saving and loan institutions, saving banks, and credit unions. Banks Are those
institutions that receive deposits or borrow money from the public and in turn lend
the same to the public, some lend money for short periods while some grant for
long periods.bank, an institution that deals in money and its substitutes and
provides other money-related services. In its role as a financial intermediary, a
bank accepts deposits and makes loans. It derives a profit from the difference
between the costs (including interest payments) of attracting and servicing
deposits and the income it receives through interest charged to borrowers or
earned through securities. Many banks provide related services such as financial
management and products such as mutual funds and credit cards. Some bank
liabilities also serve as money—that is, as generally accepted means of payment
and exchange

The principal types of banks in the modern industrial world are commercial banks,
which are typically private-sector profit-oriented firms, and central banks, which
are public-sector institutions. Commercial banks accept deposits from the general
public and make various kinds of loans (including commercial, consumer, and
real-estate loans) to individuals and businesses and, in some instances, to
governments. Central banks, in contrast, deal mainly with their sponsoring
national governments, with commercial banks, and with each other. Besides
accepting deposits from and extending credit to these clients, central banks also
issue paper currency and are responsible for regulating commercial banks and
national money stocks.

1.1 Back ground of the organization

The service of banking was started many years ago in Ethiopia. It dates back to the
establishment of the bank of Abyssinia in1906.

After the Ethiopia victory over fascist Italy the state bank of Ethiopia established
by proclamation issued in august 1942. Although the intension was to establish
issued it as fully fledged commercial bank, a year later in 1943 it was given
additional central banking function until it was splinted in 1963 commercial bank
of Ethiopia and national bank of Ethiopia.

Commercial bank of Ethiopia was legally reestablished in 1963. It is the leading

bank in Ethiopia to introduce modern banking system.
Commercial bank of Ethiopia is 100% government owned. it is pioneer to
introduce western union money transfer service in early 1990s. In currently work is
other 20money transfer agent like money gram, Atlantic international, x-press
money and so, on.

The Commercial Bank of Ethiopia currently has 1,700 branches and 31.4 million
customers. Of these, 6.7 million people use the ATM service of the Bank which
has, so far, installed 3, 091 ATM and 4, 350 POS machines across the nation.The
bank said, as part of its effort to modernize the banking service, investing on its
internet banking services.“The number of users is increasing at a higher rate,” Abe
said, adding a total of “529 billion birr worth of transactions have been made via
the internet banking system” during the entire budget year.

During the fiscal year, the bank said, it has dispersed a total of 107 billion birr loan
but managed to collect 60 billion birr loan.The Bank remains to largest
commercial bank in Ethiopia owning 999 billion Birr in assets, according to its
latest financial report.

Menahariya branch is one of the oldest branch of commercial bank of Ethiopia. It

has been established in since in 1968. It was located near to sante merry church.
Commercial bank of Ethiopia jate branch started working within few employees
but, currently there are 75 employees as June of 2012 and 81813 customers.

In general by adopting or acceptingdifferent modern working technic commercial

bank of Ethiopia in jate branch tries to achieve it is vision, mission and to bring
desire economic development in the country.

1.2 Mission,vision,core values and objectives

Vision of the Organization

To become world class commercial bank by the year 2025.

mission of the organization
The bank committed to best realize stock holders need through enhanced financial
inter mediation in global 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 is the basis of it is
success.

Core values of the organization

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

Customer Satisfaction: -The bank strives to excess in it is business and satisfy

customers.

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

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

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

Integrity:- The bank committed to the highest ideal honor and integrity

Employees: -The bank recognizes the employees as valuable organizational

resources.

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

Objective of the organization

Every organization is established for their on objectives. To achieve they have to

work hard and follow up effectively. Commercial bank of Ethiopia jate branch has
the following objectives:-

-To implement management information system

 -To maximize customer satisfaction
-To develop competence with other private banks
-To build change for all bank staffs
-To establish performance base incentives
-To deposit mobilization service
-To enhance and facilitate the development of the country.
-To maximize profit of the bank by creating difference

1.4 Product and services of CBE

Major Products and Services

1. Deposit Products and Services

The Bank provides different deposit products and services that enable customers
to save money and store valuable property.

o Savings Account

This is an interest-bearing deposit account. CBE offers different types of

SavingsAccounts designed to address needs of different sections of the society. 9

Demand Deposit Account

It is a non-interest-bearing account which is operated by cheque.o Fixed Time

Deposit This deposit account allows customers to deposit their money for agreed
termwithout movement and receive a higher interest rate than the prevailing
interest rate for savings. The minimum initial deposit is birr 10,000 or USD 5,000
or its equivalent in EUR or GBP.

o Foreign Currency Account

This account is opened in USD, GBP or EUR by international organizations,

foreigners, NGOs, embassies etc whose source of fund is overseas and in foreign
currencies.

o Diaspora Account
This account is designed for Ethiopians and foreigners of Ethiopian origin living
abroad and companies owned by them to deposit money in USD, GBP or EUR.

o Safe Deposit Box

CBE gives rental service of safe deposit boxes for customers to store their
valuable property.

2. Credit Products and Services

CBE provides credit for working capital and expansion and facilitation of local and
international trading activities. It also provides short, medium and long term
loans.

The following are the major loan types provided by CBE.

• Overdraft Credit Facility

• Merchandise Loan Facility

• Warehouse Receipt Financing

• Pre-shipment Export Credit Facility

• Agricultural Output Financing for Cooperatives/Unions Against a

Forward Delivery Contract with World Food Program (WFP)10

• Import Letter of Credit Financing

• Back to Back Letters of Credit Financing

• Letter of Guarantee Facility

• Term Loans

✓ These types of loans granted for working capital and/or project

finance to be repaid within a specific period of time.

✓ The Bank extends Short-Term, Medium-Term and Long-Term loans.

✓ Short-Term Loan is granted up to a maximum period of three years.

✓ Medium-Term Loan has a maturity period longer than three years,

but not exceeding a maximum period of seven years.

✓ Long-Term Loan has a maturity period longer than seven years, but

not exceeding a maximum period of fifteen years.

Types of Term Loans:

✓ Motor Vehicle Loan

✓ Motor Vehicle Loan for Exporters

✓ Construction Machinery Loan

✓ Special Construction Machinery and Dump Truck Loan.

✓ Infrastructure construction term Loan

✓ Investment Financing for Enterprises Operating in Industrial Parks

✓ Partial Financing Term Loan

✓ Syndicate Loan

✓ Agricultural Term Loan

✓ Micro-finance institution loan

✓ Channel Financing

✓ Urban Utility Financing

✓ Consultancy Firm Financing

✓ Interbank lending

✓ Idea Financing
✓ Import letter of credit settlement loan

✓ Loan buyout

✓ Housing Development Loan12

• Consumer Loans

A consumer loan is given to consumer individuals for personal or household

purposes. CBE offers the following consumer loans.

✓ Condominium Loan

✓ Mortgage Loan for Ethiopian Diaspora

✓ Consumer Loans for Employees of International Organizations and NGOs

o Personal Loan

o Automobile Loan

o Mortgage Loan

3. International Trade Service

CBE offers different types of trade service products and services that facilitate
import and export activities.

• Documentary Credit

• Documentary Collection

• Advance Payment

• Consignment Basis Payment

• Guarantee

✓ Bid Bond ✓ Performance Bond

✓ Advance Payment Guarantee ✓ Loan Guarantee

✓ Retention Guarantee and ✓ Customs Duty Guarantee

• Franco Valuta Permit

• Small Items Export Permit

4. Money Transfer and Forex Services

• Local Money Transfer13 • International Money Transfer • SWIFT • FCY

Purchase

CBE purchases the following foreign currencies፡

• USD • GBP • EUR • Swiss Frank • Swedish Kroner • Norwegian Kroner

• Danish Kroner • Japanese Yen • Canadian Dollar • Saudi Riyal

• UAE Dirham • Central Africa Frank

In addition to the above listed foreign currencies, CBE uses the following
currencies in account to account transfer for import/export and remittance
purposes.

• Australian Dollar • Chinese Yuan

• Indian Rupee • South African Rand

5. Interest Free Banking

Sharia-compliant finance or Interest Free Banking Service is an alternative banking

service that operates based on the principles of Sharia which prohibits at the core
the receipt and payment of interest as well as working in areas forbidden by the
religion of Islam. CBE offers the following Interest Free Banking Services:

• Deposit and Investment; • Financing;

• Guarantee;13 • Trade Service;

• Money Transfer (Hawallah); and • Foreign currency exchange.

6. Electronic Payment Services

CBE provides different banking services via electronic channels.

• CBE Birr

✓ Transfer Money ✓ Cash Out ✓ Buy Airtime

✓ Buy Goods ✓ Pay Bill ✓ Check Balance ✓ Others

• ATM

• Forex ATM • Mobile Banking

• Internet Banking • Point-of-Sale Terminal (POS)

1.5 Main customer or end user of the service&products

1.6 (SWOT) analysis of the organization

The commercial bank of Ethiopia jate branch has its strength and weakness side
there are also have good opportunities and threats that speed up and retardthe bank
over all work process respectively.

strength of the organization

Strong corporation between management and employees By innovating new

technology increase its profitability from time to time, Good efficiency and ethical
conduct of staffs,The organization makes good relationship with other local banks
and 50 foreign banks It’s ,give training for its employees to improve there
profession,The bank has qualified and experienced management who done the
activity of the bank very well.

weakness of the organization

-Some workers of the bank not give service to the customer properly

-Weak information and file management of some workers

-Sometimes there is big connection problem that makes customer angry

-There is some inefficiency material like chair tables and computers for trailing
staffs

opportunity of the organization

-The commercial bank of Ethiopia jate branch have very large number of
customers and big market opportunity because of its found near to Merkato market
center

-The development of infrastructure and investment in the country play great role
for the bank.

-Steady and fast growth of population is good opportunity for increase bank
customer.

-Availability of qualified work force in the market

-Development of information technology

threat of the organization

-Volatility of currency

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

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

-Some new and revised regulation of the National bank of Ethiopia or government.

-Economic condition of the country

CHAPTER TWO:The overall experience of internship work

2.1 Reason for the selection of the company

The reason why Iam selecting CBE is because of many reasons first it's location is
not far from our university,the bank have agoodwill,the bank have alot of
customer it's good for me to gain experience and to see many banking
transactions.

2.2 section am working on

Am working on Customer account and transaction service department.it is one of

the sectors of commercial bank of Ethiopia jate branch. It performs its duties and
responsibility by setting specific and feasible goals and objectives which support to
speed up customer satisfaction and profit maximization of the bank.

2.3 Major duties and responsibilities of the department

1) Account opening: - there are many types of accounts those are:-

Saving account – is interest bearing deposit opened by legal and physical

persons, organization and association.
Demand deposit account – shall mean an interest bearing account opened
only by customers who are literate.
Special demand account – means a non interest bearing account that is
opened to full fill the request of customer who for one not wantsinterest for
their deposit.
Fixed time deposits – a type of account deposit is received at certain period
of time without movement a minimum of three month and attracts higher
interest rate than others.
 Earmarked account – means account opened with other description after
the name of the account holders such as club, business n andwork shop
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 – exchange of other currency into birr.

5 )checkeractivities – means checking daily tickets which are filled and written
manually, by comparing the information and balance existing in the computer
system.

2.4 Major activities undertaken by me as member of the department

As department member I also have the responsibilities of performing the

activities of the department. Based on those general activities, I perform the
following specificactivitiesas an apprentice, when I was participating at
commercial bank of Ethiopia jate branch.

-I was accepting telegram from different branches and saving into computers.

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

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

-Protecting the office resource from damage. -I gave different service for
department and customers. -I fill different forms by helping customers.
2.5 Major challenges and problem i am faced during my task

There are many problems which affected me to conduct this practice among them
the major one’s are listed below. I faced many problems, during I work this
practical attachment the major ones are mentioned as follow as:-

-During the first weak it is difficult to me adopting new work condition new
environment.

-At the beginning time they didn’t give me full freedom to do

activitiesindependently.

-The transportation system is very crowded, because of this it is difficult to me

reach work place on time.

-Shortage of some extra or additional working materials like chair and computers
for trainers.

-Shortage of documented materials, journal and references

-Some employees are not interested for sharing their experience.

-Difficulty of some references written by Amharic translating in to English.

-Lack of access to organizations data.

-Financial shortage.

-Lack of experience how to apply what I have learned and working in the
organization.

-There is a problem of conduct of employees or staff.

-The problem of adopting new environment or working condition.

2.6.The measure I have taken for the problem encounter on the job
For the above mentioned problems, I used the following solutions.

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

-To solve transportation problem I try to wake up early

-The organization should have to buy additional materials like chair and computers
that help for training

-The organization should givethe opportunity for students to participate in a given

activities freely in order to improve their knowledge and producing self-confident
professionals.

-I asked my supervisor and senior employees in addition to some information to I

get from head office.

-By gathering the information of the organization from senior employees,

supervisor and head office.

-For finical shortage I used my own money in addition to given from my family

-I try to developing my experience by sharing knowledge from employees of the

organization.

- For The problem of behavior I try to approach by differentiated what they like
and dislike.

-For new environment I was try to know and adapt new things from time to time as
a condition.

2.7 Recommendation for the identified problem

I recommend that before working on the task the bank should give some
orientation about the work.

Chapter 3:Benefit gained from the internship work

3.1 Benfit i gaind improving my practical skill

The organization plays great role in my activities during I trend in many ways,
such as improving my knowledge, giving experience and making me self-confident
employee in the future. It also helps me to change what I have learned in the class
in to practice. Generally, the organization and my activity own the department
during my practical time highly related and it is more important to my study.

3.2 Benefit gained interms of upgrading my theoretical knowledge

Benefits am gained interms of improving my theoretical knowledge are:-
commercial bank of ethiopia applies the following key elements of acconting:-
accounting cycles,financial statement,withdrawal,bank recouncilation,application
of loan services,internal control of cash,annual reports,interest rate application
etc...in general this internship work gives as an opportunity to improve my
theoritical knowledge am studied in university.

3.3 Benefits gained interms of improving industrial problem solving capacity

The intrenship work improve my problem solving capacity by :-

-Defining the cause of problems. Generate clues as to the causes of problems and
their solutions. Collect accurate and relevant data and Use specific tools to solve
problems effectively. Establish consistent work processes to ensure problems do
not return

3.4 Benefits gained interms of improving team playing skill

Benefits am obtained inerms of improving team playing skills are the following:-
firstly we didn't think bank with out team work.most of bank tasks are worked by
team ,so the internship course gives me to improve team playing skills some of
them are:-

-do task coperatively as ateam

-sharing work tasks

-sharing ideas how to work

-correct each other when there is aproblem while working

-gives as the ablity to got responsiblities as ateam.

3.5 Benefits gained interms of understanding work ethics issues

The benefita am obtained interms of work ethics are several.before that ethics is
the mos essential element and need for any field of work.it is used to handle the
behaviour of employees.
There is two types of ethics:- i.e personal ethics and professional ethics

A.Personal ethics

These principles of personal ethics are values which are expected to be possessed
by all individual in their life, and contribute a lot for a smooth interaction among
individual and peaceful coexistence of a society.

What we gained in the company concerning personal ethics include:

Concern for the well being of the other

Honesty

. Fairness

Compliant to the law

doing good

Refusing to take up un fair advantage

B. professional ethics

Professional ethics refers to the standards or a set of moral Principle for regulating
behavior of a certain defined profession. In order to consider that an activity to be a
profession, it should be carried out by one who has advanced education,
knowledge, and skills. Thus for developing health working environment and
increase productivity, ethical work conduct are important medium.

The following are some of the professional ethics what we gained during our
internship work. i.e
 Punctuality -means keeping the companies work beginning and ending
time and to complete a given task within the given period.

discipline - in work place you do not have to disturb the working

atmosphere for example abstain from opening loud voice, loud music,
songs and others which may disturb others.

Reliability - the worker should be qualified for the task he /she is supposed
to perform. He/she must have appropriate skill and knowledge for the task
assigned.

Honesty – regarding this value each worker regardless of its status should
abstain from bad behaviors such as cheating, bias, corruption etc.

Cooperation - each worker should be interact and cooperate with each

other while working. That is because it is through such system problems
could be easily solved.

3.6 Benefits gained interms of improving interpersonal communication

skill

As i have mentioned in the above bank work tasks excuted as agroup or as ateam
so interpersonal communication is the necessary thing to excute tasks properly
because of this the internship work gives me an opportunity to improve my
interpersonal communication skill by:- ask questions about the task ididn't know
before

-communicate with customers

-communicate with managers

-communicate with tailors etc...

Chapter 4: summary,Recommendation and conclusion

4.1.Summery and conclusion

Commercial bank of Ethiopia was legally reestablished since 1963 have many
branches. I made my practical attachment at one of the oldest commercial bank of
Ethiopia branch, jate. Commercial bank of Ethiopia jate branch starting from its
establishment 1968 within its own mission, vision and objective gives different
service to the society and its support economic development of the country by
financing and providing loan service for huge industry and business it has also its
own weakness, strength and problems. Customer account and transaction service
department is one of the departments structured under Commercial bank of
Ethiopia jate branch as a unit and perform its duties and responsibilities by setting
specific and feasible objective. Major activities performed by this department are
account opening, cash withdrawal, deposit and amendment, foreignexchange,
telegramming and checker activity. By overcoming this duties and responsibilities
effectively and efficiently the department has its own contributionfor the success of
the bank mission.As a department member I have also performed some specific
activities in the bank.During I stayed commercial bank of Ethiopia jate branch I
have observe some problems and put suggested solution for this problem.

Generally, this practical attachment has its own multidimensional significance in

benefiting host organization universities and specially students, by improving
knowledge and experience.

4.2 Recommendation

As mentioned out commercial bank of Ethiopia jate branch has its own weakness
and problems.So in order to overcome these problems andto provide qualified
services for its customer I have recommended the following points.The
organization should have full fill all necessary materials lice computers, chairs and
table’s etc.By asking concerning body to speed up and provide quality
service.The organization should communicate with concerned body to solve
network connection problem that face some times and interrupt working condition
it also have to prepare training and some work shop for employees to make current
strategy of government familiar to its worker and improve their knowledge.The
organization should have overcome their duties and responsibilitiesperfectly using
highly designed, policy, strategy and system in order to handle customer more than
competitors and to get the highest public trust.The organization should have taken
some measure for miss behavioral employees, which are work improperly and
interrupt working environment.

References

-Www.cbe.org

-different websites