1. What is the name of the organization?
Give a short account of the history of the
company/organization. Describe the way it has grown and developed?
We select Commercial Bank of Ethiopia
Background of CBE
The history of the Commercial Bank of Ethiopia (CBE) dates back to the establishment of
the State Bank of Ethiopia in 1942. CBE was legally established as a share company in
1963. In 1974, CBE merged with the privately owned Addis Ababa Bank. Since then, it has
been playing significant roles in the development of the country.
CBE is the pioneer to introduce modern banking to the country. It has more than 1950
branches stretched across the country. It is from the leading African bank with assets of 1
trillion Birr as on June 30th 2021. Plays a catalytic role in the economic progress &
development of the country. The first bank in Ethiopia to introduce ATM service for local
users.
Currently, CBE has more than 38.9 million account holders and the number of Mobile and
Internet Banking users also reached more than 6.6 million and 37k.. Active ATM
cardholders reached more than 8.3 million and 17million CBE birr users.
It has a strong correspondent relationship with more than 50 renowned foreign banks like
Commerz Bank A.G., Royal Bank of Canada, City Bank, HSBC Bank,... CBE has a SWIFT
bilateral arrangement with more than 700 others banks across the world.
CBE combines a wide capital base with more than 60,000 talented and committed
employees. Pioneer to introduce Western Union Money Transfer Services in Ethiopia early
1990s and currently working with other 20 money transfer agents like Money Gram, Atlantic
International (Bole), Xpress Money.
What does the organization do? What goods and services does it produce/provide? What kind of
value does it create? If the company/organization has an annual report, what does the report
describe as the company’s organizational vision and mission?
What does the organization do? What goods and services does it produce/provide? What kind of
value does it create? If the company/organization has an annual report, what does the report
describe as the company’s organizational vision and mission?
The commercial bank of Ethiopia is the largest commercial bank in Ethiopia, providing various financial
investment opportunities to individuals, businesses, and government entities. It also gives services and
products accordingly depend on society cultures and religious. That means broadly divided conventional
and CBE NOOR. It plays a crucial role in the country economy by facilitating financial transactions,
supporting economic growth, and promoting financial inclusion.
Commercial bank of Ethiopia offers wide range of financial product and services to its customers.
The service and product provide by commercial bank of Ethiopia includes:
Deposit Products
• Local currency deposit Product
• Saving deposit
• Ordinary saving
• Women saving
• Teen Youth saving
• Youth saving
• Education saving
• Mortgage saving
• Army Saving
• Wedding Saving
• Holiday Saving
• Tatary Saving
• Foreign Hawala Saving
• Gasha saving
• Guzo Saving
• Demand deposit
• Ordinary demand deposit
• Special demand deposit
• ECX related accounts
• OD Account
• Z-account
• Fixed time deposit
• Foreign currency deposit product
• NRT FCY
• NRT BIRR
• NRNT BIRR
• FOREIGN EXCHANGE RETENTION
• DISPORA ACCOUNT
• Diaspora demand deposit
• Diaspora fixed time
• Diaspora non- Repartriable
SERVICE IN CBE
Utility Service & Agency
Service
CBE NOOR DEPOSIT
PRODUCT
A- Noor Wadiah Based Saving Account
1. Noor Wadiah Ordinary
2. Noor Wadiah Almerah (Women)
3. Noor Wadiah Ashebab (Youth)
4. Noor Wadiah Almerahiq (Teen Youth)
5. Noor Wadiah Atea’lim (Education)
6. Noor Wadiah Labbaik (Hajji/Umrah
7. Noor Wadiah Zakat Saving Account
8. Noor Wadiah Mahr Saving Account
9. Noor Wadiah Cash Indemnity
10. Noor Wadiah Qadim (Elders)
11. Foreign Wadiah Hawala Saving A.
12. CBE Rihla Wadia Saving(Guzo)
B- Noor Mudarabah Saving Deposit Account
1. Noor Mudarabah Ordinary savings;
2. Noor Mudarabah Almerah (Women)
3. Noor Mudarabah Ashebab (Youth)
4. Noor Mudarabah Atea’lim (Education)
5. Noor Mudarabah Almerahiq (Teen Youth)
6. Noor Mudarabah Nikah (Wedding)
7. Noor Mudarabah EID (Holiday)
8. Noor Mudarabah Qadim(Elders)
9. Foreign Mudarabah Hawala Saving Account
10. CBE Rihla Mudarabah Saving(Guzo)
11. Noor Mudarabah Labbaik (Hajji/Umrah)
C- Noor Mudarabah Fixed/Term Investment
1. 3 Months up to 6 Months;
2. Greater than 6 Months up to 12 Months;
3. Greater than 12 Months up to 24 Months;
4. Greater than 24 Months; and Other Negotiable
D- Noor Amanah Demand Deposit Accounts
1. Noor Amanah Demand Deposit Account
2. Noor Amanah ECX Related Account;
Interest free financing or CBE Noor financing
I. Murabaha Revolving and Short Term
type
B. Murabahah Merchandise Facility
C. Murabahah Pre-shipment Export Financing Facility
D. Murabahah Pre-shipment Export Financing Facility for Manufacturer-Exporter
E. Murabahah Livestock Export Financing
II. Murabaha Term Financing type: for
Local & Import Purchases
A. Motor Vehicle Murabaha Financing
B. Motor Vehicle Murabaha Term Financing for Exporters
C. Construction Machinery Murabaha Financing
D. Murabahah Financing for Enterprises Operating in Industrial Parks
E. Murabahah for purchase of foreclosed and acquired properties
F. Murabahah for purchase of building and Business Establishments
G. Murabahah Agricultural Input financing
H. Murabahah Commercial Farming Term financing
B. Interest Free Pre-shipment Export Financing Facility
C. IV. Import Letter of Credit Facility (L/C Margin
Business Credit Products Availed by
CBE
Overdraft Facility
Merchandise Loan Facility
Import Letters of Credit
Facility
Pre-Shipment Export
Credit Facility
Letters of Guarantee
Facility
Term Loans (including
idea financing)
Loans in the form of Bonds (corporate
or coupon bond
Card banking
Types Of CBE Cards
Domestic Visa Debit Card
• Classic Normal
• Classic Women
• Noor Classic
• Noor Hilwa
• Gold Domestic
• Noor Gold
• Platinum Domestic
• Noor Platinum
• Co-branded Platinum
CBE proprietary (Private
Label) Cards
a.White Label Cards ( on Process)
b. Co-Branded prepaid Gift Cards
c.General Purpose Gift Cards (CBE
Wallet & others)
International VISA Prepaid
Cards
a.VISA Classic Prepaid Card
b. VISA Gold Prepaid Card
VISA Platinum Prepaid Card
Mobile Banking
Functionalities of CBE’s
Mobile Banking Service..
My account Cheque book request
Transfer to CBE Birr Wallet Cheque book status
Make Payment to Beneficiary
Payment to others Cheque book detail
Local money transfer system Exchange rate
Manage beneficiary
Utility Payment Loan repayment schedule
Buy Airtime Future dated transfer
Standing orders
My service Pay Your Flight
ATM Locator
Others CBE provide internet banking and CBE
BIRR
Value creation of commercial bank of Ethiopia
as follows
Financial value: it generates financial value
by providing services such as loan,
investments, and money transfers, which helps
individuals and businesses manage their
finances, grow their wealth and conduct
transaction efficiently.
Economic value: The bank contributes to
overall economic development of Ethiopia by
providing funding for business supporting,
entrepreneurship, and facilitate international
trade.
Social value: By offering banking services to
individual and communities, improve living
standards, social responsibility, like import
drug, to participate on community service, like
infrastructure, hospital and support drought
area.
Trust and stability
Employment and skill development: The bank
creates employment opportunities by hiring
staff across various roles and levels
According to the Annual report describes the vision mission as follows
2 Draw a model of the way the organization
creates value. Briefly describe its inputs,
throughputs, outputs and environment and
also draw the organization structure
(Organization chart)
4,Do an initial analysis of the organization’s major problems or issues. What challenges
confront the organization today—for example, in its efforts to attract customers, to lower
costs, to increase operating efficiency? How does its organizational design relate to these
problems?
The commercial bank of Ethiopia face several
challenges in attracting customers, lower
costs, and increasing operating efficiency.
Some of the major problems include:
1. Customer Acquisition: The bank may
struggle to attract new customers due to
competition from other bank and financial
institutions, as well as the need to cater to
diverse customer segments with value
needs and preferences.
2. Cost management: lowering operational cost while maintaining
service quality is significant challenges. Factors such as overhead
expenses, technology investments, and regulatory compliance can
strain financial resources
Operating Efficiency: Streamlining processes and reducing inefficiencies is crucial
for improving operating efficiency. Legacy systems, bureaucratic procedures, and
workforce skill gaps may hinder the bank ability to adapt quickly to market
changes and customer demands,
Organization Design: The bank organizational structure and hierarchy could impact
its ability to address these challenges effectively. Centralized decision making
processes, siloed departments, and lack of cross functional collaboration may slow
down innovation and responsiveness to market dynamics.
To overcome these issues, the commercial bank of consider adopting more
customer centric approach, digitalization and innovation, investing in technology
to automate processes enhance customer experience, reevaluating its cost
structure through strategic cost cutting measures, and fostering a culture of
innovation.
5.Read its annual report and determine which kinds of goals, standards, or targets the
organization is using to evaluate performance. How well is the organization doing when
judged by the criteria of control, innovation, and efficiency.
