Belayneh, Temesgen (PhD)Tadele, Senait2021-05-062023-11-042021-05-062023-11-042016-08http://etd.aau.edu.et/handle/123456789/26326The main objective of this study is to analyze the operational challenges of Interest-Free Banking in Ethiopian Banking Industry. It is also aimed at providing solutions to these challenges. To achieve this objective, a cross sectional data is generated from a sample of respondents, consisting of staff and Managers were sourced via structured questionnaires and Interview. Both primary and secondary data collection instruments is used to collect data, closed ended and open ended questionnaires along with interviews is used for the purpose of data collection. The data is analyzed using percentage, graphs and tables. The selection of the respondents is carried out by using systematic sampling method. The result of the study indicates that interest free banking is in its early stage in the industry and most of the staffs and managers have no ample knowledge about the product and services of IFB. Moreover, it indicates there is absence of proper legal frame work, sufficient and skilled man power, absence of Auditing and Accounting standards as well as Insurance firms. The researcher recommended giving adequate and proper training as well as benchmarking and sharia advisory in policy and legal issues rather than depending on undependable sourcesen-USIslamic BankingInterest- Free BankingInterest-Free WindowThesis