Department of Accounting and cooperative studies
Permanent URI for this collectionhttps://repository.mu.edu.et/handle/123456789/113
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Item OPPORTUNITIES AND CHALLENGS OF INTEREST FREE BANKING SERVICES IN COMMERCIAL BANK OF ETHIOPIA: A CASE STUDY IN MEKELLE CITY(Mekelle University, 2025-06-28) HELEN EBRAHIMThis study aims at investigating the opportunities and challenges of the interest-free banking services, specifically focusing on the Commercial Bank of Ethiopia (CBE), Mekelle City. These study intendeds to identify the key obstacles hindering the growth of interest-free banking services. The study used descriptive methods of analysis to help organize and summarize data effectively. Both quantitative data (numeric data such as percentages and frequencies obtained from questionnaires) and qualitative data (non-numeric data such as perceptions, opinions, and insights gathered from interviews) were used to provide a comprehensive understanding of the subject. The primary data was collected from the Customers and Employees of the selected banks by using purposive sampling technique through questionnaire and interview while the secondary data was collected by compiling and summarizing the bank’s Annual reports and Journals. Data was collected through questionnaire by using purposive sampling technique from a sample size of 361 customers and 50 employees from the interest free banking in Commercial Bank of Ethiopia properly filled and returned the questionnaire. The study was conducted in Mekelle City in May 2024 G.C. The data collected from the questionnaire were analyzed using SPSS version 23 statistical tools such as percentages and frequency. Apart from this, It has been shown from the analyzes that lack of awareness is the primary challenge faced by interest-free banking sector in CBE at Mekelle City. The findings indicate that awareness is the main obstacle to the sector’s growth. Additionally, customers and employees expressed concerns about the need for improved risk management, financial practices, and educational campaigns to enhance acceptance and understanding of interest-free banking.So that the bank should strengthen robust risk management, sound financial practices, public awareness and education. The findings of this research contribute to the understanding of the interest-free banking sector in Commercial Bank Ethiopia, Mekell City. With this fact, it provides valuable information for policymakers, financial institutions, and researchers.Item CURRENT STATUS, CHALLENGES AND OPPORTUNITIES OF INTEREST FREE BANKING IN ETHIOPIA(Mekelle University, 2024-12) TEKLEMARIAM ESTIFANOSInterest Free Banking (IFB) services offer ethical, Shariah-compliant financial solutions and are gaining popularity in Ethiopia among Muslim and non-Muslim clients. This study examines the socio-demographic profile of IFB clients, perceptions of services among stakeholders, managerial insights, and the operational status of IFB. A mixed-method approach was adopted, utilizing structured questionnaires for quantitative data and interviews with IFB division managers for qualitative insights. Descriptive statistics summarized key findings, while thematic analysis interpreted qualitative responses. The study reveals increasing acceptance of IFB services, driven by their ethical principles, but identifies challenges such as limited public awareness, misconceptions, and economic uncertainties. Clients and employees view IFB as a viable alternative to conventional banking, and managers highlight the need for Shariah compliance, fund segregation, and employee training. Key opportunities includeIX product diversification and digital banking solutions to meet evolving client demands. To unlock IFB’s full potential, the study recommends raising public awareness, fostering community engagement, and investing in innovative financial products and digital services. Strengthening Shariah governance and enhancing operational efficiency are essential to promoting ethical financial inclusion in Ethiopia.