An Assessment of Credit Monitoring Activities on interest Free Banking: A Case Study on Cbe Noor
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Date
2024-05-30
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A.A.U
Abstract
In the banking sector, effective risk management systems and monitoring procedures play a
pivotal role in assessing progress towards predefined objectives. This study evaluates the credit
monitoring practices at CBE Noor in Addis Ababa, Ethiopia, focusing on interest-free banking.
Data was gathered from 153 respondents across four selected branches of CBE, out of a sample
of 177 respondents who completed self-administered questionnaires. A descriptive research
design was used for data analysis, which examine main aspects of the study such as client
investment monitoring, stakeholder engagement, supervisory infrastructure, and adequacy of
professional training in credit monitoring for interest-free banking. The findings indicate a
strong positive perception of customer investment monitoring within interest-free banking.
Investors show significant interest in the establishment and growth of interest-free banking
services. The study highlights the robust supervisory infrastructure of the Commercial Bank of
Ethiopia (CBE) in the context of interest-free banking, noting its effective oversight and
supportive role in credit facilities. Additionally, the study identifies sufficient qualified personnel
dedicated to monitoring interest-free banking activities, despite lower utilization of desktop and
online tracking tools. Overall, the study underscores investor confidence and support for
interest-free banking initiatives at CBE Noor. It recommends collaborative efforts between CBE
and regulatory bodies to enhance regulatory frameworks in specific markets.