Assessing The Prospects and Challenges of Islamic Banks in Ethiopia the Case of Zamzam Bank
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Date
2024-04-10
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A.A.U.
Abstract
The aim of this study was to evaluate the problem and prospects of Islamic banks in Ethiopia case Zamzam Bank. To achieve this, a descriptive research design was conducted and both a qualitative and quantitative research method was used. This study was conducted using 400 of respondents, which was probably selected using a simple random sampling method from the total number 20,050 target population. The researcher used both primary and secondary source of data to conduct the study. The researcher conducted quantitative and qualitative analysis from the responses collected on research questions. Data that is collected using a structured questionnaire (quantitative data) are coded and analyzed using quantitative analysis with the help of Microsoft Excel 2016 software. Based on the result of the finding, lack of public awareness, lack of guidelines and supervisions, lack of supportive organization, tax policy and monetary policy, lack of legal framework, lack of professional in the sectors, lack of effective government support, lack of secondary market and Islamic insurance were identified as the main challenges of IB. While attraction of investors and potential customers, raising investment opportunity, financial inclusion of marginalized communities, creation of employment opportunities, support and expansion of local businesses, and creation of equitable distribution of income among the communities were identified as the major prospects of IB.