Professional Documents
Culture Documents
ETHIOPIA
WELCOME!!! 4/23/17
1
CBE-CATS Training
COMMERCIAL BANK OF
ETHIOPIA
Day 1
Morning
2
CBE-CATS TRAINING 4/23/17
CBE-CATS Training
GETTING TO KNOW EACH
OTHER
Name
Field of study
Work experience, if any
Career aspiration in CBE
Your expectation from this Training ?
Active participation
And Enjoy
The Training!!
4/23/17 CBE-CATS TRAINING 5
CONTENTS
General Overview of Banking
CBEs Profile, Vision, Mission and Values
Corporate Strategy of the Bank
Customers Classification & Features of
Products
Types of Deposit Products
Account Opening Process
Payment and Collection Process
Other Issues
4/23/17 CBE-CATS TRAINING 6
GENERAL TRAINING
OBJECTIVES
To familiarize the trainees with the Banks Vision, Mission
and Values
To give an introductory overview of strategic direction of
the bank;
Introduce trainees the way various tasks are organised
and how they are performed
To aware trainees their duties and responsibilities in
handling different customer requests and financial
transactions
To let trainees know the CATS process end-to-end.
4/23/17 CBE-CATS TRAINING 4/23/17
COMMERCIAL BANK OF
ETHIOPIA
Day 1 Morning
8
CBE-CATS TRAINING 4/23/17
CBE-CATS Training
COMMERCIAL BANK OF
ETHIOPIA
CHAPTER I
INTRODUCTION
HISTORY OF BANKING IN
ETHIOPIA
The modern banking history in Ethiopia originated
after the agreement that was reached in 1905
between Emperor Minilik II and Mr. Ma Gillivray,
representative of the British owned National Bank of
Egypt marked the introduction of modern banking in
Ethiopia/Bank of Abyssinia was inaugurated in
February 16, 1906 by the Emperor/.
The intertwined net inscribed around the coin shows the Banks wide
branch distribution where customers can easily reach them and
CBEs working towards achieving regional and global presence
anywhere.
4/23/17 CBE, Brand 21
CBE BRAND
LUNCH
27
CBE-CATS TRAINING 4/23/17
CBE-CATS Training
CBE
202
5
Internal Stakeholders:
Owners (BOD & MoFED);
Employees;
Management; The following are list of CBEs
Stakeholders
Customers Expectation:
Quality service, Convenience (service accessibility), Diversified
Banking products, Competitive Pricing,
CBE Response:
Operational Excellence Customers value proposition: Standard
services/products, Convenience, Error free Service, Competitive
Price.
1. Integrity
We are committed to the highest ideals of honor
and integrity.
We strive to act in an honest and trustworthy
manner.
We firmly adhere to ethical principles.
2. Customer Satisfaction
We strive to excel in our business and satisfy our
customers.
We are committed to offer the highest quality
service to our customers and aspire to be branded
with quality
4/23/17
in the minds of our customers and the
CBE-CATS TRAINING 43
VALUES
3. Employee satisfaction
We are committed to employee training and
professional growth.
We distinguish our employees as valuable
organizational resources.
We recognize our employees for their achievements.
4. Learning Organization
We are committed to anticipate and respond to
internal and external changes through constant
improvement and adaptation.
We strive to establish a culture that nurtures
4/23/17 CBE-CATS TRAINING 44
VALUES
6. Public Trust
We understand that the sustainability of our business
publics confidence.
We deliver the same level of service for less cost, time or effort.
8. Decentralization
We are committed to delegate operations and decision-making
responsibilities.
48
CBE-CATS TRAINING 4/23/17
CBE-CATS Training
DISCUSSION QUESTION
DISCUSS HOW
ORGANIZATIONAL VALUES CAN
BE TRANSLATED AT BRANCH
LEVEL
Operational Excellence
To mobilize funds/public resources and channel
towards developmental ventures, the bank should
exceed customers expectations.
55
CBE-CATS TRAINING 4/23/17
CBE-CATS Training
COMMERCIAL BANK OF
ETHIOPIA
Day 2: Morning
56
CBE-CATS TRAINING 4/23/17
CBE-CATS Training
STRATEGIC PERSPECTIVE
AND OBJECTIVES
Financial and Developmental Perspective
Strategy objective 1 : Ensure Sustainable
Profitable
Enhance the Banks profit by increasing income through expanding
income sources;
Developing new products and services;
business ethics;
standards;
Improved IT4/23/17
capability. CBE-CATS TRAINING 64
STRATEGIC
Internal Business Process
Perspective Strategy
objective
9: Improve Risk Management
Identify measure, monitor and manage inherent and
potential risks;
Build risk management capability and create risk
awareness culture; and
The risk management strategy is drawn in alignment
Recognition on achievement;
71
CBE-CATS TRAINING 4/23/17
CBE-CATS Training
OVERRACHING
1. Strong and Stable Financial Position
and Enhanced Developmental
Partnership
Continuous profitability;
Strong capital management;
Good asset quality;
Strong liquidity position;
Stable source of fund;
Robust Risk management system;
Finance major development endeavors of the
country as per the economys demand;
Corporate social responsibility.
Knowledgeable Employees;
Improved IT capability
4/23/17 CBE-CATS TRAINING 74
OVERRACHING
4. Motivated and Proficient
Employee
Improved Performance management and
succession planning system;
Employee with:
Lunch
89
CBE-CATS TRAINING 4/23/17
CBE-CATS Training
Reflection Questions
due respect
the branch;
limit
instruments;
106
CBE-CATS TRAINING 4/23/17
CBE-CATS Training
COMMERCIAL BANK OF
ETHIOPIA
CHAPTER II
CUSTOMER
CLASSIFICATION
AND
FEATURES OF PRODUCTS
107 CBE-CATS TRAINING 4/23/17
CBE-CATS Training
CHAPTER OBJECTIVE
At the end of the chapter, trainees will be able:
CBE-CATS TRAINING
4/23/17 108
CUSTOMER CLASSIFICATION
I. Retail /consumer/customers
A. Private
B. Government
C. Public, and
D. Associations.
Ethiopia like the UN, AU, EU, IGAD, NEPAD etc; and
and league
End of Day 2
126
CBE-CATS TRAINING 4/23/17
CBE-CATS Training
COMMERCIAL BANK OF
ETHIOPIA
Day 3: Morning
127
CBE-CATS TRAINING 4/23/17
CBE-CATS Training
Reflection Questions
List the various deposit product
offered by CBE?
issuing checks;
It enables the bank to collect money on behalf its
customers;
4/23/17 CBE-CATS TRAINING 132
DEMAND ...
It enables the account holders to obtain overdraft
facilities /after approval of credit request/;
The creditors of the account holders can get credit
worthiness information (swing and turn over);
It provides deposit and withdrawal of money at any
locations;
It facilitates of Internet Banking and Mobile Banking;
Sometimes current account holders allowed to
withdraw funds above their credit balance up to the
limit approved. This arrangement is known as
overdraft facility.
they mobilize.
(conventional definition)
Advantages:
Encourages saving habits;
Enables the depositor to earn income /interest /;
Helps the depositor to make account to account
transfer;
Saving account passbook acts as an identity;
It provides a facility for paying beneficiaries through
internet, mobile, visa and etc;
It provides immediate cash as and when required;
It gives record of all transactions;
140
CBE-CATS TRAINING 4/23/17
CBE-CATS Training
SAVING WITH ADDITIONAL
FEATURES AND ADVANTAGES
A. Women saving Account
Features
The account is provided only for women.
public
Features
The amount deposited only once
150
CBE-CATS TRAINING 4/23/17
FIXED TIME
The period of fixed deposit is greater than or equal to 3
months and Minimum Amount Birr 10,000 or USD 5000
or Equivalent
Withdrawal are not allowed prior to the maturity date ,
however if customer request any withdrawal before
the maturity date ,he or she forfeits the higher interest
rate on the amount of withdrawal and shall be paid
normal saving interest rate on the amount withdrawn;
The deposit can be renewed for further period
151
CBE-CATS TRAINING 4/23/17
FIXED TIME
Advantages
It encourages saving habits for a longer period of time;
Lunch
153
CBE-CATS TRAINING 4/23/17
CBE-CATS Training
FOREIGN CURRENCY
ACCOUNTS
The foreign-currency accounts are to be maintained
only in
currency types of:
US Dollar
Pound Sterling and
Euro
Retention Account A:
172
CBE-CATS TRAINING 4/23/17
CBE-CATS Training
CHAPTER - III
CUSTOMER
CREATION AND
ACCOUNT
OPENING
4/23/17 CBE-CATS TRAINING 173
DAY 3
Morning
Introduction
Eligibility Criteria
Document Requirements
Customer Creation
Account Opening
End of Day 3
187
CBE-CATS TRAINING 4/23/17
CBE-CATS Training
COMMERCIAL BANK OF
ETHIOPIA
Day 4: Morning
188
CBE-CATS TRAINING 4/23/17
CBE-CATS Training
DOCUMENT
REQUIREMENTS
202
CBE-CATS TRAINING 4/23/17
CBE-CATS Training
Discussion Question
Identify and list the required documents to open an
account for
Edirs
Partnership
Share companies
LUNCH
216
CBE-CATS TRAINING 4/23/17
CBE-CATS Training
DOCUMENT
DOCUMENTS REQUIRED FOR FOREIGN CURRENCY
ACCOUNT
Embassies:
Permit from the National Bank of Ethiopia NBE
An application letter which states manner of operation signed
by the head of the delegation (Ambassador)
Diplomatic ID-card or passport of A/c signatories
Diplomats
Permit from the National Bank of Ethiopia NBE
Application letter
Diplomatic ID-card or passport
4/23/17 CBE-CATS TRAINING 217
DOCUMENT
International organizations
Religious organizations
Account for Minors
Federal Government
Local Government
Embassy
International Organizations
Account for firms under the process of
registration for Investment or Trade
license
DAY-4:
Afternoon
CBE-CATS TRAINING
4/23/17 CBE-CATS TRAINING 230
ACCOUNT OPENING
Account opening involves
contractual agreement
made to make business
dealing with the customer
with proper identfication
through authenticated
documents
It is a crucial stage at
branch where cross selling
and up-selling activity can
be done
Custo
Custo
mer
mer
Duties
Duties
Duties
Duties
Document
Special...
Joint accounts
customers sign jointly on the application form.
The number of account holders should not be
more than three.
Agreement (FROMCBECATS001-1) should be
signed incase of and/or account
Application form marked as a joint account, or
as an and account, or as an and/or account
Earmarked Account
The account is opened in the name of the
account holder, followed by of other descriptions
with double quotation
Ex. Hailu Tessema Mama Supermarket
Such accounts should be kept in the name or
names of the individual/s concernednot in
impersonal names
DAY-4:
End of Day 4
CBE-CATS TRAINING
4/23/17 CBE-CATS TRAINING 246
COMMERCIAL BANK OF ETHIOPIA
DAY-5
MORNING
CBE-CATS TRAINING
4/23/17 CBE-CATS TRAINING 247
COMMERCIAL BANK OF
ETHIOPIA
CHAPTER IV
NEGOTIABLE INSTRUMENT
250
4/23/17 CBE-CATS TRAINING 28-Nov-16
250
NEGOTIABLE.
Endorsement
Endorsement is defined as the signature plus
any other sign by which the endorser transfer
his rights in an item to someone else.
It also means signing a negotiable instrument
usually on the back for the purpose of
negotiation / transfer of holder right.
Payee - beneficiary
4/23/17
have the specimen signature of endorser
CBE-CATS TRAINING 260
.
NEGOTIABLE.
Checks Issued in the Names of Organizations
or Legal Entities
Are transferable to other organizations or individuals
like any other checks, if they have been sealed and
endorsed by the authorized signatories.
DAY-5
MORNING
CBE-CATS TRAINING
4/23/17 CBE-CATS TRAINING 266
NEGOTIABLE.
First instance
Record the incident for the first time in the Dishonored Cheque Register;
and restricted all debit (outgoing) transactions against this account until
DAY-5
Lunch
CBE-CATS TRAINING
4/23/17 CBE-CATS TRAINING 283
COMMERCIAL BANK OF
ETHIOPIA
CHAPTER V
COLLECTION
284
CBE-CATS TRAINING
CBE-CATs Technical Training
4/23/17
Collection
COLLECTION
Objectives of the chapter
To give a clear understanding on the process of cash
deposit transaction.
To identify the various ways of processing non cash
related transactions.
To give an introductory overview about the process of
the existing cheque clearance system and the new
Cheque Truncation System (CTS)
CBE-CATS TRAINING
4/23/17 CBE-CATS TRAINING 298
COLLECTION.
Collection of Cash for Certified Payment
Order (CPO) or Demand Draft:
Education;
Correspondence fee;
Seminar;
Training;
Symposium;
Workshop;
Conference;
Membership fee;
Medical fee and
Others in line with the pertinent directive of the NBE.
4/23/17 CBE-CATS TRAINING 302
COLLECTION.
The transfer is processed by preparing foreign
demand draft or swift transfer message;
Per the N.B.E directive FXD/10/1998 Commercial
Bank of Ethiopia allow foreign employee to remit
aboard salary which should not exceed net
earning upon submission of the following
documents;
Duly completed &signed application form by the
applicant.
4/23/17 CBE-CATS TRAINING 303
COLLECTION.
Valid work permit accompanied with employment
contract which show his /her earnings;
Valid passport & Residence ID card & Work permit
ID;
The permit is valid for payment during the month
of issue only & may extend for good for 10 days
and CBE can only give permit for the amount one
month salary net earnings.
Writing the amount sold and the air ticket number on the
pass port and put the bank stamp
Its endorsement
.
4/23/17 CBE-CATS TRAINING 307
COLLECTION.
Account number and name of account to be
deposited
The amount of money in both words and
figures
The signature of the beneficiary appear on
it
Authenticates the signature, and posts both the debit
and credit entries, if the limit is within her/his
discretionary limit;
forwards the check for dual authorization if the
amount is above her/his authorization limit
Affixes CSO- stamp on the back of the check and
bank;
End of Day 5
CBE-CATS TRAINING
4/23/17 CBE-CATS TRAINING 317
COMMERCIAL BANK OF ETHIOPIA
DAY-6
MORNING
CBE-CATS TRAINING
4/23/17 CBE-CATS TRAINING 318
CHEQUE CLEARING
SYSTEM
To strengthen
the
management
of payment
system risk in
the country
4/23/17 CBE-CATS TRAINING 321
ETHIOPIAN CHEQUES (NEW
DEVELOPMENT )
There would two types of Ethiopian Cheques :
Business cheque:
Includes Bankers Cheque (so far named in Ethiopia
as Cashiers Payment Order-CPO);
Shall be issued to PLCs, Corporation, Government
entities, NGOs, Business Men, etc.
Personal Cheques
Shall be issued to individuals as per the interest of
banks e.g. Customer having special savings account at
4/23/17 CBE-CATS TRAINING 322
the bank
MAJOR CHANGES ON THE
NEW CHEQUES..
Replacement of CPO by Bankers Cheque;
Similar with Business Cheque
Printed and personalized by Name of the Bank
including NBE
Has MICR (Magnetic Ink Character Reader) code line
and can be scanned like any other cheques
By The Order/Instruction of: is printed during the
issuance of the cheque as per the customer
instruction
Receipts or any supporting
4/23/17 CBE-CATS TRAINING
document can
323
be printed
MAJOR CHANGES.
Writing the Cheque:
The date is written on the cheque is in the form of
DDMMYYYY
format;
Pay Name should be written until | mark and has to
be in the next line if longer;
CBE-CATS TRAINING
4/23/17 CBE-CATS TRAINING 328
Collectionof
Negotiable
Instruments
fromother
bank
4/23/17 CBE-CATS TRAINING 329
PAPER TO FOLLOW APPROACH
Branch receive Branch dispatch ATS scan the cheque and
from customer cheque &CPO send the physical
other bank cheque along with OBC instruments to other
and CPO ticket to ATS banks
If rejected ,the
check returned for
the customer
Checks specified under OBC are not purchased at the banks counter.
received from the concerned correspondent bank for the credit of the
proceeds and advice of credit is received. Accepts the instrument with
a valid ID card and checks the particulars written on the bills
Makes the customer fill out the deposit voucher, puts her or his initials
Lunch
CBE-CATS TRAINING
4/23/17 CBE-CATS TRAINING 340
CHAPTER VI
PAYMENT
Payment instruments
Payment of checks from Current Account-local
Checks
Payment of FCY checks
Handling of incoming clearance
Handling payment of checks through special
clearance greater than birr 200,000.00
Payment of CPO and handling of Lost or expired
negotiable instrument
CSO-
MAKE
R
CSO-
Checke
r
Branch
Controll
er
4/23/17 CBE-CATS TRAINING 355
FCY CHECKS
Duties
Affixes the stamp of the customer services officer
and puts her or his initials on the face of the
check;
Cross-checks the balance on the system against
the cash on hand; and
Hands over the check to the branch controller as
soon as the transaction is completed.
CBE-CATS TRAINING
4/23/17 CBE-CATS TRAINING 357
CONNECTING 9 DOTES
maker
The CSO Maker Receives the filled out LMTS payment form
system
4/23/17
data and the beneficiarys
CBE-CATS TRAINING
ID card; 366
PAYMENT AGAINST LOCAL
Duties
Enters the customers address, the ID cards number,
the name of the issuing organization or office, the
date on which it was issued and generate the ticket
from the system and makes the customer signs on it;
If the amount to be paid is within her/his payment-
authorization limit, effects payment to the
beneficiary/payee after authorization; otherwise, the
transaction should be directed to CSO-Checker/CSM;
End of Day 6
CBE-CATS TRAINING
4/23/17 CBE-CATS TRAINING 369
COMMERCIAL BANK OF ETHIOPIA
DAY-7
MORNING
CBE-CATS TRAINING
4/23/17 CBE-CATS TRAINING 370
PAYMENT AGAINST FOREIGN
MONEY TRANSFER
Foreign Remittance transfers
originated by various money transfer
organization (MTO) shall processed
per the payment guideline of each
MTO and the general payment
procedure of CATS Process
1. Western Union
2. Xpress
3. Bole Atlantic
4. Money Gram
5. Dhabshil
CBE-CATS TRAINING
4/23/17 CBE-CATS TRAINING 379
COMMERCIAL BANK OF
ETHIOPIA
CHAPTER 8
ACCOUNT CLOSURE
AND
OTHER ISSUES
CBE-CATS TRAINING
4/23/17 CBE-CATS TRAINING 380
SPECIFIC OBJECTIVES
CBE-CATS TRAINING
4/23/17 383
REASON TO CLOSE AN
ACCOUNT
Customer request
Court order
Lunch
CBE-CATS TRAINING
4/23/17 CBE-CATS TRAINING 388
INACTIVE ACCOUNT
Inactive account is either saving or current account
which remain idle or dormant with no movement for a
period of twelve or six consecutive months
respectively;
CBE-CATS TRAINING
4/23/17 CBE-CATS TRAINING 396
AMENDMENT AND
CANCELATIONS OF LMTS
When customer made an error in LMTS the
sender/remitter is possible to ask amendment or
cancelation in originating branch but the customer
must pay additional service charge.
End of Day 7
CBE-CATS TRAINING
4/23/17 CBE-CATS TRAINING 408
COMMERCIAL BANK OF ETHIOPIA
DAY-8
MORNING
CBE-CATS TRAINING
4/23/17 CBE-CATS TRAINING 409
COMMERCIAL BANK OF ETHIOPIA
DAY-8 Morning
CBE-CATS TRAINING
4/23/17 CBE-CATS TRAINING 410
COMMERCIAL BANK OF ETHIOPIA
DAY-8 Morning
Post Assessment!!
Lunch
CBE-CATS TRAINING
4/23/17 CBE-CATS TRAINING 412
COMMERCIAL BANK OF ETHIOPIA
DAY-8
Afternoon
CBE-CATS TRAINING
4/23/17 CBE-CATS TRAINING 413
COMMERCIAL BANK OF ETHIOPIA
DAY- 8
Afternoon
Overall Discussion on
topics
covered so far!
CBE-CATS TRAINING
4/23/17 CBE-CATS TRAINING 414
COMMERCIAL BANK OF ETHIOPIA
DAY-8
Afternoon
THANK YOU!!
CBE-CATS TRAINING
4/23/17 CBE-CATS TRAINING 415
THE END!!