Research Proposal On Challenges of Local Government
Research Proposal On Challenges of Local Government
PREPARED BY:
SIHNE ALEMU
ADVISOR:
MR. YOSEPH W.
MR. TEKABE S.
JIMMA UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF BANKING AND FINANCE
DECEMBER 2010/11
JIMMA, ETHIOPIA
TABLE OF CONTENTS
Title Page
TABLE OF CONTENTS.....................................................................................................i
ABSTRACT........................................................................................................................ii
ACKNOWLEDGEMENT..................................................................................................iii
CHAPTER ONE..................................................................................................................1
INTRODUCTION...............................................................................................................1
1.1 Background of the Study...........................................................................................1
1.2 Background of the organization.................................................................................2
1.3 Statement of the Problem...........................................................................................5
1.4 Objective of the Study...............................................................................................6
1.4.1 General Objectives of the Study.........................................................................6
1.4.2 Specific Objectives of the Study.........................................................................6
1.5 Significance of the Study...........................................................................................7
1.6 Scope of the Study....................................................................................................8
1.7 Limitation of the Study..............................................................................................9
CHAPTER TWO...............................................................................................................10
2. LITERATURE REVIEW..............................................................................................10
CHAPTER THREE...........................................................................................................13
METHODOLOGY............................................................................................................13
3.1. Source of data.........................................................................................................13
3.2. Method of data collection.......................................................................................13
3.3 Sampling techniques and sample size......................................................................13
3.4 Method of data analysis...........................................................................................13
CHAPTER FOUR.............................................................................................................14
TIME BUDGET AND COST BUDGET..........................................................................14
4.1. Time Budget...........................................................................................................14
4.2 Cost Budget.............................................................................................................15
REFERENCE....................................................................................................................16
ANNEXES.........................................................................................................................17
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ABSTRACT
This study under the title assessment on factors affecting the profitability of
commercial bank of Ethiopia Yirga Cheffe branch in Yirga Cheffe town will has
want to know factors that will affect the profitability of the bank. The general
objectives of this study will be assessing and investigating the main factors that
will affect the banks profitability. There also a specific objective in the study will
be mention.
Both primary and secondary data will conduct primary data will be collect through
questionnaire, secondary data will collect from the allowable literature on the
subject and from published and unpublished materials.
The data will be analyze by using both qualitative and quantitative data analysis
particularly descriptive types of analysis will be used in the study is percentage,
pi-chart and tables. Pervasive sampling techniques has be used as a sampling
techniques and the obtained results will analyze using descriptive analyzing
method. Finally based on the result of findings, conclusion and recommendations
will be forward.
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ACKNOWLEDGEMENT
First, I would like to thank almighty God that helps me through out my life.
Secondly, I would like to thanks my family of helps and also I like to express to
heart felt gratitude to my advisor MR. Yoseph W. and MR. Tekabe S. for her
guidance and constructive suggestion in completing this research proposal.
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CHAPTER ONE
INTRODUCTION
1
1.2 Background of the organization
The history of bank in Ethiopia will dates back to the establishment of the bank of
Abysinia in 1905.
The bank will be the first bank in the history of Ethiopia, establishing under the
partnership of the government of Ethiopia and the national bank of Egypt. The
bank will continue to operate until 1931, later on, it with wholly purchased by the
government of Ethiopia and renamed “ The bank of Ethiopia” This bank will
operate until the Italian invansion in 1936.
From 1936-1942 (National bank these years will marked by the Italian
occupations. There will only a few Italian banks operating. After the victory over
fascist Italy, the state bank of Ethiopia will establishing by a proclamation issue in
august 1942, Although the international will to establish it as a full fledged
commercial bank, a year later, in 1943, it will gives additional central banking
functions until it will splited in 1963 to from the two banks, the national and
commercial bank of Ethiopia according with the issuance of the monetary
proclamation 1993, the national bank of Ethiopia and the commercial bank of
Ethiopia will establish to handle the national banking and commercial banking
functions respectively.
The state owned Commercial Bank of Ethiopia will still dominates the market
interns of assets, deposits, capital, and customer base and branch network, despite
the growing competition from private banks over the last 17 years. This will make
of one of the most reliable and strong Commercial Banks in the country and the
region.
Its strong capital base, close to seven decodes of rich experience in the market and
wide branch network through out the country will enable the bank to
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accommodate the large demands for its services, and will increase its overall
revenue on sustainable basis.
The bank will be the first bank in Ethiopia to introducing ATM (Automated teller
machine) Services for local users and currently commercial bank of Ethiopia will
has about 2 million account holders. It will has strong correspondent relationship
more than 50 renewed foreign banks and SWLFT bilateral arrangement with 500
others.
As at the end of fiscal year 2008/09, the bank will has 208 branches stretching a
cross the length and depth of the country, and 7955 employees whom it regards as
its key assets but at this year, 2010 the bank will have 305 branches and more than
9000 employees. As June 30th 2010, total deposits will stood at by 56.1 billion
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while total assets and capital of the bank will reach by 73.7 billion and 5.5 billion
respectively.
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1.3 Statement of the Problem
The study will tries to assess factors affecting the profitability of commercial bank
of Ethiopia Yirga Cheffe branch under various competitive conditions. There is
so many factors that will affect profitability of business organization. Identifying
those factors has a great significance for the successful operation of the
organization because these factors will be a means for measuring the weakness
and strengthens and to realize the changing business environment.
The main factors that affecting profitability of the banks will be highly related to
the emergence of new potential competitors in the market. In addition to this
efficiency of banking services to customers like money transfer, loan facilities,
deposit services in comparison to other competitors will be another factors. Thus
this study will try to access those factors affecting the profitability of commercial
bank of Ethiopia in Yirga Cheffe branch and tries to find answers for the following
questions.
1. How customers feel about the service that are rendered by the bank.
2. What are the effects of competition on banks market share and profitability.
3. By what method the bank control the effects of competitors.
4. What are the main factors affecting the profitability of the bank.
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1.4 Objective of the Study
1.4.1 General Objectives of the Study
The general objectives of this study will be to identify or assess factor that affect
the profitability of commercial bank of Ethiopia Yirga Cheffe branch will
investigate different factors that affect the development or growth of the
organization.
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1.5 Significance of the Study
7
1.6 Scope of the Study
The overall scope of this study will be focusing on the extent to which the research
objective is concerned will avoid discrepancies, ambiguity, misunderstanding and
other related problems, in conducting the research objectives.
The study will conduct on southern nation nationalities of Ethiopia in Gedeo Zone
Yirga Cheffe town. So as to search or critically will investigate factors affecting
profitability of commercial bank of Ethiopia. Yirga Cheffe branch to reach on
remarkable results from the study, by attempting will answer the stated questions
on the statements of the problem.
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1.7 Limitation of the Study
The following limitations will affect the research significance form generating
expected out comes or information.
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CHAPTER TWO
2. LITERATURE REVIEW
Thus we have seen that a banker receives deposits which he has to repay according
to his promises and makes them available to those people who are really in need of
them. E is actually distributing his deposits between the borrowers and his own
vaults. “Banking theory and practice, Shekhar and Shehar 18th edition.
Agency Service
Most of the commercial banks have an executor and trustee department; some
many have affiliated companies to deal with this branch of their business they aim
is to provide, therefore, a complete range of trustily executor or advisory services
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for a small change. The business of banks acting as trustees, administrator, etc…,
has continuously expanded with considerable use fullness of their customers.
Most banks will undertake on behalf of this customers the preparation of income
tax returns and claims for the recovery of over paid tax.
By selling drafts or orders and by issuing letter of credit circular notes, travelers
cheques, etc… a commercial banker is discharging a very important function.
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were high integrity, intuitive shrewdness, certain degree of impassivity, but not
necessarily high intellect.
It is time for them now to be proactive in their approach and to anticipate the new
demands on their skills that will be emerging and to prepare for the same through
appropriate adjustments in their organizational structure and method of operations
and procedures in an environment of operational flexibility and internal autonomy.
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CHAPTER THREE
METHODOLOGY
In collecting primary data questioner will be used. The questioner may have both
open and close ended type. In order to collect secondary data bank document and
other publiciers will be extracted including finding of other related books.
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CHAPTER FOUR
TIME BUDGET AND COST BUDGET
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4.2 Cost Budget
Item Quantity Duration in Unit cost Total cost
day per day (Birr)
Personal cost
Researcher 10 30 300
Transpiration 2 round
(Jimma –Y/cheffe)
Y/cheffe- Jimma 2 170 340
Typist 150
Equipment
Printing 100 0.30 cent 30
Paper 2 reams 75 150
Pen 4 3.00 12
Pencil 2 0.60 cent 1.20cent
Robber 2 1.50 cent 3.00
Miscellaneous expense 150
Total 1136.20
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REFERENCE
1. Shekhar and Shedhar (1996) .. “Banking theory and practice” 18th edition
2. Frederic S. Mishkin (1990) “ The economic of money, Banking and financial
marketing”
3. Michael T. Baker (1998) “Dictionary of marketing and advertising 1998”
Macmillan
4. Dr. Solomon Alemu, (2005) “Research methodology in business and social
science.
5. Modern commercial banking, H. R Machiraju.
6. www.nbe.gov.et
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ANNEXES
COLLEGE OF BUSINESS AND ECONOMIC
JIMMA UNIVERSITY
DEPARTMENT OF BANKING AND FINACE
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3. Is the bank profitable? Yes No
If the answer is no, what is the reason?
____________________________________________________________
__________________________________________________________
4. What type of credit program is the bank utilize?
Term loan Short term loan Overdraft
Merchandize loan Agricultural loan
5. What is the different types of securities required by the bank for advancing the
loan? _________________________________________________________
______________________________________________________________
Does the bank satisfied with this securities sufficiently
Yes No
6. What is the method of charging securities to cover the advanced loans of the
bank? _________________________________________________________
______________________________________________________________
7. Is there any decrease in the numbers of borrowers due to the emergence of new
competitions?
Yes No
If the answer is Yes, what is the reason and by what amount the number of
customers decrease? _____________________________________________
______________________________________________________________
______________________________________________________________
8. Does the bank gives advice for borrowers?
Yes No
9. What is the main problem in advancing and repayment of loan?
_______________________________________________________________
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_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
12. What is the bank strategy to compete with the competator to maintain its
market share.
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
13. What are the main problem that the bank currently faces? ________________
_______________________________________________________________
_______________________________________________________________
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Questionnaire of customers
This questionnaire will design to collect information for assessing factors affecting
the profitability of commercial bank of Ethiopia from the customers of the bank.
So you will kindly request to complete this questionnaire genuinely and honestly.
Please full the questions provided below. Remark, no need of writing your name
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4.2. If you say little, list your reason _______________________________
_________________________________________________________
5. What is the bank contribution for your business activity and personal life?
_______________________________________________________________
_______________________________________________________________
6. Have your ever ask the bank for a loan previously?
Yes No
6.1. If your answer is Yes, for what purpose ___________________________
____________________________________________________________
6.2. If your answer is No, why don’t you ask a loan______________________
____________________________________________________________
7. Which type of the bank borrowing system do you use previously?
Short term loan medium term loan
Long term loan merchandize loan
Agricultural loan
8. How much you are satisfied by the bank borrowing system
Very much Little Unsatisfied
8.1 If you say very much, on what way the bank satisfied you?
___________________________________________________________
____________________________________________________________
8.2 If you say little, why __________________________________________
___________________________________________________________
___________________________________________________________
8.3 If you say unsatisfied, what is the reason? ________________________
___________________________________________________________
___________________________________________________________
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9. What type of security required by the bank, when the loan is advanced by the
bank __________________________________________________________
______________________________________________________________
10. Do you face any problem when you ask the bank for a loan?
Yes No
If you say yes, what was the problem ________________________________
______________________________________________________________
11. Does the organization employees treat you well?
Yes No
12. What is the main problem of the bank comparing to other private bank?
_______________________________________________________________
_______________________________________________________________
13. Are you using other private bank?
Yes No
14. Are you satisfied by other banks service?
Yes No
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