Assessment of International Banking Practice and Payment Method (Particularly Import Export) Of Selected Private Commercial Banks In Ethiopia
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Date
2024-03-05
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AAU
Abstract
The primary goal of the study was to conduct a critical assessment of the international banking service practices of selected private commercial banks in Ethiopia. The study, address problem areas, identify challenges, evaluate employee commitment and knowledge gaps, assess the effectiveness of international banking practice, and determine the current situation in electing
the most suitable methods. The research used descriptive study; it ncorporates different demographic status of the respondent, Management members, and professional staff members, senior and intermediate nternational banking officers in order to assure creditability of the
study outcomes. Moreover, according to the study findings, banks operating under limited foreign exchange resource, approving foreign currency for traders based on their own interests, specifically for holders of diaspora accounts and retention accounts, rather than prioritizing customers on a
first-come, first-served basis. On the other hand, the problem of foreign currency liquidity leads to delays in the payment for document settlement.
Consequently, the study outcome indicate remedial measures in improving international banking practice by implement meticulous and effective internal controls for the management of international banking services, to ensure timely and secure transactions, utilizing robust technology. Additionally, banks should adopt a customer-centric approach, granting foreign currency to customers based on a fair and transparent "first come, first served" basis. Beside to this, in try to address that periodic training should be provided to personnel in the international banking department. This training should cover topics such as trade payment methods, Uniform Rules for Collection; Uniform Customs Practice, and the relevant directives of the National Bank of Ethiopia.