Business Administration in Finance

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Browsing Business Administration in Finance by Author "Abebe Yitayew (PHD)"

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    Operational Challenges and Opportunities of Interest Free Banking in Ethiopia: The Case of Commercial Bank of Ethiopia
    (A.A.U, 2023-02-04) Mulushewa Kibret; Abebe Yitayew (PHD)
    The main objective of the study is examining the operational challenges and opportunities of Interest Free Banking in Ethiopia, particularly, in Commercial Bank of Ethiopia empirically. To accomplish the intended purpose of this study, survey method of descriptive research design was used to gather data. Primary data was collected through interviews and questionnaires to answer the research questions. In addition secondary data extracted from internal reports and survey of the bank. Respondents were sampled from IFB employees of Commercial Bank of Ethiopia to achieve the objectives of the study. Data was collected through questionnaire by using random sampling from a sample of 155 IFB staffs 135 were properly filled and returned the questionnaires. The data collected from the questionnaire were analyzed using SPSS statistical tools such as percentages and frequency. The result indicate that legal and regulation framework, low level of awareness of practitioners, lack of commitment, taxation related issues, lack of trust by customer about segregation of funds, wrong perception of Interest Free Banking or wrongly associated with religion and weak shari’ah experts functionality are the major challenges of IFB operation in Ethiopia. Further the finding of the study showed that interest free banking creates opportunity to the bank to mobilize the idle resource which was out of bank system through enhancing customer base and it is helpful to the economy as well. Thus, the National Bank of Ethiopia as a regulatory body, the government and banks should give more emphasis for the challenges that they face on the operation to have those mentioned opportunities and inclusive growths.