Main Slide For CATS Training For Beginners

COMMERCIAL BANK OF
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 ?
4/23/17 CBE-CATS TRAINING 3

GROUND RULE
Arrive On Time
Absenteeism is not allowed
Switch-off your Mobile phones
Share You Practical Experience, if any.
Respect Others view
Active participation
Avoid interruption and side talks
Any Other (from the participants)

Value Your Time
And Enjoy
The Training!!
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
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
TEA/ COFFEE BREAK
8
CBE-CATS Training
COMMERCIAL BANK OF
ETHIOPIA
CHAPTER I
INTRODUCTION
9 CBE-CATS TRAINING 4/23/17

CBE-CATS Training
GENERAL OVERVIEW OF
BANKING
Bank is a lawful organization, which accepts
deposits that can be withdrawn on demand. It also
lends money to individuals and business houses
that need it.
The word banking has been defined as accepting
deposits from the public for the purpose of lending
and investing.
See banking history video (Title: History of
Banking)
OVERVIEW
Primary and secondary functions
of banks:
I. Primary or principal functions are
three types:
Acceptance of Deposit
Lending
Investment
II. Secondary or auxiliary functions
are two types:
Agency Services like collection and payment of
checks, standing
11
instruction, collecting Utility bills,4/23/17
CBE-CATS TRAINING
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/.
Bank of Abyssinia was legally replaced by Bank of

Ethiopia shortly after Emperor Haile Selassie came to
12 CBE-CATS TRAINING
power in 1931. 4/23/17
HISTORY ...
During the invasion, the Italians established branches of
their
main Banks namely:
Banca dItalia,
Banco di Roma,
Banco di Napoli and
Banca Nazionale del lavoro and started operation in
the main towns of Ethiopia.
In 1941 another foreign bank, Barclays Bank, came to

Ethiopia
with the British troops and organized banking services in
Addis
Ababa, until its withdrawal in 1943.
HISTORY
In April 1943, the State Bank of Ethiopia
commenced full operation and acted as the central
Bank of Ethiopia and had a power to issue bank
notes and coins as the agent of the Ministry of
Finance.
As per proclamation No.207/1955 of October 1963,

Commercial Bank of Ethiopia took over the
commercial banking activities of the former State
Bank of Ethiopia;
The first privately owned bank, Addis Ababa Bank

Share Company, was established on Ethiopians
initiative and started operation in 1964 with a
capital of 2 million.
HISTORY ...
Following the declaration of socialism in 1974 the
government extended its control over the whole
economy and nationalized all large corporations;
Consequently Addis Bank S.C and Commercial

Bank of Ethiopia . were merged by proclamation
No.184 of August 2, 1980 to form the sole
commercial bank in the country till the
establishment of private commercial banks in 1994.

HISTORY ...
By integrating these banking functions CBE was
established to
perform major banking functions, including:
Accepting saving, demand and time deposits;

Providing short, medium and long term loans;
Buying and selling foreign exchanges;
Buying and selling negotiable instruments
and securities issued by the government,
private organizations or any other person; and
Engaging in other banking activities
customarily carried out by commercial banks.

CBE BRAND ELEMENTS AND
ATTRIBUTES
CORPORATE NAME:
Corporate name is the name of the Bank, which is
in Amharic and
Commercial Bank of Ethiopia in English.
A corporate Name of the bank
Shall not be separately written in Amharic or English.
Shall be written in Verdana font type in English and

Visual Geez Unicode font type in Amharic.
Shall be written in golden or black color depending on
the background and rarely in white for more visibility.
4/23/17 CBE, Brand 17

CBE BRAND ...
CORPORATE LOGO
It serve as a corporate identity of the Bank and a symbol of its
brand.
Logo of THE COMMERCIAL BANK OF ETHIOPIA.

Attributes of the logo:
The coin expresses that the Bank is a financial intermediary;
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
4/23/17 CBE, Brand 18

CBE BRAND...
The Banks name in Amharic around the edge; and

The Banks name at the center of the coin written
in English acronym.
It appears in relevant advertisements, signage, and
forms, service provision tools such as debit cards and
passbook, branches name and service outlets, and any
internal and external correspondences with golden or
black color depend on the background
4/23/17 CBE, Brand 19

CBE BRAND
CORPORATE COLORS COMBINATION:
GOLDEN indicates the Banks robust wealth, high
service quality, reliability, premium service or clarity of
vision, mission, values and strategy;
4/23/17 CBE, Brand 20

CBE BRAND
BLACK shows the Banks originality, its being
pioneer in premium customer service delivery, and
that it is the successor of the first bank;
PURPLE shall be applied with other colors for
advertisement and decoration to attract and is used
as flag color, paper head and becomes background
anywhere.
4/23/17 CBE, Brand 21
CBE BRAND
THE CORPORATE MOTTO OF CBE shall read

as:
THE BANK YOU CAN ALWAYS RELY ON!
!
Shall be written in Verdana font type in English and
Visual Geez Unicode in Amharic.
Shall be written in golden or black color, depending on
the background.
The Amharic and English versions of the motto shall
not be separately written.
4/23/17 CBE, Brand 22
CBE BRAND
CORPORATE FLAG
corporate flag of CBE flies at the Head office, branches

and during events.
The corporate flag flies alongside the national and/or
regional flags as the case may be. Table flags on the
other hand are placed on the Banks official desk.
The Background of the corporate flag shall be purple
and bears the corporate logo in golden color.
Jingles (Sound Branding)used in all radio and
television commercial ads.
4/23/17 CBE, Brand 23
CBES PROFILE
It has over 1,140 branches stretched across
the country as of June 30, 2016;
A bank with Assets of Birr Above 384.6
billion as of June 30, 2016;
A bank has a total deposit of Birr 288.5
billion as of June 30, 2016;
The Pioneer Bank in Ethiopia to introduce
modern banking technologies to its
customers;
PROFILE
E-payment product position as of June 30, 2016:
Number of ATM = 889;
Number of POS terminal = 6,269;
Number of VISA Card holder =1.4 million;
Mobile Banking users = 431,677;
Internet user are 13,730.

PROFILE
CBE has more than 13.3 million Account holders as
at June 30, 2016.
It has strong correspondent relationship with more
than 50 renowned foreign banks and a SWIFT
bilateral arrangement with more than 700
financial institutions
CBE combines a wide human capital base with
more than 28,467 employees;
Pioneer to work with Western Union Money Transfer
Services in Ethiopia. (Currently working with more
than 15 worldwide known Transfer agent)
The Capital of the Bank is reached Birr 12 Billion.
COMMERCIAL BANK OF
ETHIOPIA
Day 1
LUNCH
27
CBE-CATS Training
CBE

CBE

VISION
202
5

TO BECOME A WORLD-
CLASS COMMERCIAL
BANK BY THE
YEAR 2025.
DISCUSSION
Discuss what makes CBE World

Class
Commercial Bank.

MISSION
We are committed to best realize
stakeholders' values through
enhanced financial intermediation globally

and supporting
national development priorities, by deploying

highly motivated,
skilled and disciplined employees as well as

state-of-the-art
technology. we strongly believe that winning

DISCUSSION
1. Who are CBEs Stakeholders?
2. What mean national Development
priorities?

WHO ARE MAJOR
STAKEHOLDERS?
Understanding what our stakeholders need and how
to deal with
their needs is fundamental to the strategy
development.
Internal Stakeholders:
Owners (BOD & MoFED);
Employees;
Management; The following are list of CBEs
Stakeholders

MAJOR STAKEHOLDERS
External Stakeholders:
Customers
Government and Regulators
Development Partners
Competitors
Vendors or Suppliers
Communities
Other interest groups

INTERESTS OF MAJOR
STAKEHOLDERS
1. Customers:
Who are they?:
Depositors, Borrowers, Foreign Currency Remitters, Essential
Goods & Infrastructure Importers and Others
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.

INTERESTS OF MAJOR
STAKEHOLDERS:
2. The Owner /Government/:
Owner expectations: Supporting the national
development endeavor, Sustainable growth &
Profitability, Banking service to the unbanked, strong
and sound Bank;
CBE Response: Implement Corporate Strategy,

Increase outreach & financial inclusion, Introduce new
products, Enhance resource mobilization, Build strong
risk management and internal control system;
INTERESTS OF MAJOR
STAKEHOLDERS:
3.Employees:
Employees expectation: Recognition, career
development, merit based compensation and
promotion, competitive salaries and benefit packages;
CBE Response: Conducive working environment,

Employee development & training , Performance
based reward system, Clear HR procedures and
guidelines.

INTERESTS OF MAJOR
STAKEHOLDERS
4.Regulators :
Expectation: Safety of depositors money, Financial sector
stability;
CBE Response: Comply with Banking rules and regulations, Set
appropriate risk management system, Exercise corporate
governance;
5.Development Partners:
Expectation: Increased accessibility and financial inclusion,
Support to their development efforts, Job creation to local people;
CBE Response: Increase accessibility through opening,
branches/outlets; Support social & community development
efforts; Merit based recruitment of employees from local areas.
CBES VALUES

VALUES
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
VALUES
5. Teamwork and Collaboration

We recognize the importance of teamwork for our success.
We support to one another and working co-operatively.
6. Public Trust
We understand that the sustainability of our business
depends on our ability to maintain and build up the
publics confidence.

VALUES
7. Value for Money

We use resources carefully to save expense, time or effort.
We deliver the same level of service for less cost, time or effort.
We deliver a better service or getting a better return for the
same amount of expense, time or effort.
8. Decentralization
We are committed to delegate operations and decision-making
responsibilities.

VALUES
9. Corporate Citizenship
We value the importance of our role in national
development endeavor and step-up for
commitment.
We abide by the laws of Ethiopia and other
countries in which we do business.
We care about societys welfare and the
environment.

COMMERCIAL BANK OF
ETHIOPIA
Day 1 Afternoon
Tea/ Coffee Break
48
CBE-CATS Training
DISCUSSION QUESTION
DISCUSS HOW
ORGANIZATIONAL VALUES CAN
BE TRANSLATED AT BRANCH
LEVEL

CORPORATE STRATEGY OF
CBE
A strategy is a business approach to a set of
competitive moves that are designed to generate a
successful outcome.
A strategy is managements game plan for:
Strengthening the organizations competitive
position
Satisfying customers
Achieving performance targets
Four big questions involved in a strategy:
Where are we now?
Where do we want to go?
How will we get there?
How do we know ifCBE-CATS
4/23/17 we got there?
TRAINING 50
CORPORATE STRATEGY
Strategic Management is the process by which managers set
an organizations (or several organizations) long-term course,
develop plans in the light of internal and external circumstances,
and undertake appropriate action to reach those goals.
Strategic management is a set of managerial decisions and
actions that determines the long run performance of a firm.
It includes environmental scanning (both external and internal),
strategy formulation (strategic or long-range planning), strategy
implementation, and evaluation and control.

STRATEGIC ISSUES OF THE
BANK
Strategic issues are identified from the External &
Internal Analysis and assessment of previous
strategy performance;
Addressing strategic issues would lead the Bank to
the realization of the vision and mission;
If strategic issues are not dealt with, they will
hamper the successful implementation of the
strategy.

STRATEGIC THEMES OF THE
CBE
Business Growth
Increase market share out of the growing economy;
Retain its industry leadership;
Meet the dynamic expectation of stakeholders
Operational Excellence
To mobilize funds/public resources and channel
towards developmental ventures, the bank should
exceed customers expectations.

STRATEGIC OBJECTIVES
Themes &
Perspectives Strategic Objectives
Results
Ensure Sustainable Profitability
Financial
Increase Financial Resource
Business
and Mobilization
Growth:
Enhance Developmental Financing
Developmental
Sustainable Ensure Financial Soundness
profit and Increase Customer Satisfaction
Customer
Enhanced Role Expand the Customer Base
towards Enhance Accessibility of Services
National Internal Business Improve process efficiency and
Development effectiveness
Process
Improve Risk Management
Improve Employee Satisfaction and
Operational
Engagement
Excellence :
Enhance Information Systems
Satisfied Learning & Growth
Enhance Human Resource Development
Stakeholders
Enhance Internal and External
Communication
COMMERCIAL BANK OF
ETHIOPIA
Day 1 Afternoon
End of Day One
55
CBE-CATS Training
COMMERCIAL BANK OF
ETHIOPIA
Day 2: Morning
Start by Reviewing Day One
56
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;
Enhancing the quality of earning assets;
Periodic price revision;
Expanding the customer base; and
Manage costs by improving the internal business process efficiency.

STRATEGIC
Financial and Developmental

Perspective
Strategy objective 2 : Increase
Financial Resource Mobilization
Implement various strategic initiatives and
constantly improve our approach of financial
Resource Mobilization (Deposit and FCY).
collection of disbursed loans and bonds as per the
repayment schedule.
STRATEGIC
Financial and Developmental
Perspective
Strategy objective 3: Enhance
Developmental Financing
Provide the available financial resources (Loan and FCY
Payment) to key economic sectors in alignment with the
requirements of GTP 2 (Industry, Export, Agriculture and
Tourism);
Focus on the private sector to become one important
player in the economy;
STRATEGIC
Financial and Developmental Perspective
Strategy objective 4: Ensure Financial
Soundness
Manage the financial health of the Bank through adherence to
business ethics;
Abiding by NBE rules and regulations and applicable international
standards;
Maintain quality asset and bring about strong capital position;
Exercising prudent lending; and
Improving the financial capability of the Bank.

STRATEGIC
Customer Perspective
Strategy objective 5: Increase Customer
Satisfaction
In order to increase customer convenience (24/7 customer
service),
Fast and quality service;
Better accessibility;
Competitive pricing;
Availing customized /new products; and
Call center excellence.

STRATEGIC
Customer Perspective
Strategy objective 6: Expand
Customer Base
work on acquiring additional customers and
retaining and developing existing customers;
Recruiting additional unbanked customers; and
Increase the market share.

STRATEGIC
Internal Business Process
Perspective
Strategy objective
7: Enhance Accessibility of Services
Additional new branches expansion;
Extensive technological channels like ATMs, POSs
and Mobile and Internet Banking services; and
Agent Banking.

STRATEGIC
Internal Business Process Perspective
Strategy objective
8: Improve Process Efficiency and
Effectiveness
Continuous process improvement;
Continuous Benchmarking and customized international best

banking practices;
Streamline organization;
Cross process integration;
Up-to-date IT resources; and
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
with the Banks business strategy.

STRATEGIC
Learning and Growth Perspective
Strategy
Objective
10: Improve Employee Satisfaction and
Engagement
Creating better working environment;
Availing competitive benefit package;
Recognition on achievement;
Merit based promotion; and
Career succession and Empowerment.

STRATEGIC
Learning and Growth
Perspective
Strategy objective
11: Enhance Information System
Adoption of state-of-the-art technology that meets
the business requirements of the Bank; and
Create more customer friendly and cost efficient
operational environment.

STRATEGIC
Learning and Growth Perspective
Strategy objective 12: Enhance Human
Resource
Development
Competency-based learning and development;
Career and succession management;
Employee performance management;
Coaching, mentoring, delegation, creating self-
learning and experience sharing sessions;
Employees are made aware to understand and
exercise ethical conduct as per the Banks core
values.
STRATEGIC
Learning and Growth
Perspective
Strategy objective 13: Enhance
Internal and
External Communication
Conduct uninterrupted vertical and horizontal
internal communication;
Educating the public about major Bank services;
and
Updating the public on the Banks performance and
any developments
OVERRACHING STRATEGIC RESULT
Overarching strategic result:

It is a high level translation of the vision.
CBEs OVERRACHING STRATEGIC RESULT FOR

VISION 2025 is:
1. Strong and Stable Financial Position and

Enhanced Developmental Partnership,
2. Stakeholder Responsiveness,
3. Process Efficiency and Effectiveness, and
4. Motivated and Proficient Employees.

COMMERCIAL BANK OF
ETHIOPIA
Day 2: Morning
Tea/ Coffee Break
71
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.

OVERRACHING
2. Stakeholder Responsiveness
Improve compliant handling system;
Improve customer information system;
Introduce customized product/services;
Highly Satisfied stakeholder.

OVERRACHING
3. Process Efficiency and Effectiveness
Improved service delivery time;
Knowledgeable Employees;
Continuous process improvement;

Continuous Benchmarking and customized international best
banking practices;
Streamline organization;
Introduce more self-service channels;
Up-to-date IT resources; and
Improved IT capability
OVERRACHING
4. Motivated and Proficient
Employee
Improved Performance management and
succession planning system;
Employee with:
High level of engagement
Highly competent with service quality attitude

SOME OF THE STRATEGIC PLAN FOR
FIVE YEARS (2015/16- 2019/20)
The private deposit on average will grow by 30%;
Foreign currency earning on average will grow by 22.3%
% per year;
The bank will open additional 500 branches during the
strategy period;
The Bank will deploy 400 ATMs and 2000 POSs per year;
Additional 2 million account will be opened per year;
Customer base Expansion: 2 million accounts Per Year;
Five million Mobile Banking users and 12.4 million card
users;

SOME OF THE STRATEGIC
PLAN
The human resources increase is expected for the
fulfillment of future attritions and business
expansions;
The banks deposit market share will be maintained;
Stretched targets that test the Bank are set;
Not less than 80% Employee Satisfaction and
Engagement Score;
Not more than 2% of Employee Attrition every Year;
Customer satisfaction: Not less than 80%;
PLAN
I. Incremental Deposit by
Ownership
June June June June June June Total
2015 2016 2017 2018 2019 2020
Private 38,679 46,000

59,800 77,740 101,062 131,381 415,983
Cooperative
In Millions of(58)
Birr 306 398 517 672 874 2,767
Public 1,438 2,419
3,145 4,088 5,315 6,909 21,875
Government 8,377 3,574 4,646 6,040 7,852 10,208 32,320
Total 48,436 52,299
67,989 88,385 114,901 149,371 472,945
Private 19% 30% 30% 30% 30%
Growth rate
Growth 8% 30% 30% 30% 30%

Rate
PLAN
II. Total Deposit by Ownership
June ofJune
In Billions Birr June June June June
2015 2016 2017 2018 2019 2020
Private
158.6
204.5 264.3 342.1 443.1 574.5
Cooperative 4.1
4.4 4.8 5.3 6.0 6.8

Public
31.5
34.0 37.1 41.2 46.6 53.5
Government
47.5
51.1 55.7 61.8 69.6 79.8
Total
PLAN
III. Foreign Currency Earning
In
June
millions of USD June June June June June Total
2015 2016 2017 2018 2019 2020
Export 972.8 1,648.9 2,061.1 2,576.4 3,220.5 4,025.6
13,532.5
Service Receipt 1,716.6 2,096.5 2,409.2 2,768.5 3,181.5 3,656
14,111.7
Private Transfer 2,030.3 2,696.3 3,270.6 3,967.2 4,812.2 5,837.2
20,583.5
Official Transfer 881.2 1,075.8 1,210.3 1,361.6 1,531.8 1,723.3
6,902.8
Total 5,600.9 7,517.5 8,951.2 10,673.7 12,745. 15,242
9 55,130.3
Export Growth 69.5% 25% 25% 25% 25%
rate
Growth Rate 34.2% 19.1% 19.2 19.4% 19.6%

PLAN
VI.Gross Profit
In millions of Birr
June June June June June June
2015 2016 2017 2018 2019 2020
Total Income 22,790 27,895 33,474 39,363 45,615 52,574
Total 10,127 12,468 15,267 18,567 22,600 27,536

Expense
Gross Profit 12,663 15,427 18,207 20,796 23,015 25,038

CBE BY 2020
Strong financial position:
To support the country vision and development;
Great role to stabilize macro economy;
Play a pivotal role to lead and develop the
financial sector of the country;
The Banks Asset quality; Earning quality and
corporate social responsibility would be one of the
top hundred Bank in the world;
Strong capital to cover all risks;

BY 2020
All process are automated and efficient;
Streamlined organization;
Proficient and competent staff ;
Global presence;
Robust risk management system;
Can compete with world class commercial Bank

STRATEGIC ISSUES
1. Resource Mobilization
2. Risk Management
3. Human Resource Management
4. Information Technology
5. Process efficiency and effectiveness
6. Marketing and sales management
7. Capital growth
8. Physical Resources Management
9. Financing and prudent lending
1. RESOURCE
MOBILIZATION
Resource mobilization remain the most important
priority of the bank in order to enhance our role of
supporting the national development priorities;
The economy has a potential to sustainably grow
in the coming period and offers an opportunity to
mobilize additional public saving.

RESOURCE
The bank built good organizational experience and
capacity in the form of technology, strategy,
branch network, employee readiness in order to
capture the economys potential;
The Bank will capitalize on the branch network and

expanded customer base

RESOURCE MOBILIZATION
TECHNIQUES
Awareness creation- Introduce new deposit
accounts, products & services etc.
Money tracking- Enhanced money tracking
activity through coordinated efforts of
Districts/Branches.etc
Door to door service- Enhancing service delivery
activities like ATM Distribution, account opening
and Introducing POS Services.

TECHNIQUES
Cross selling - Exert maximum effort to broaden
customer base, amount of deposit and number of
accounts by contacting customers presented for
payment.
Service excellence - Persistently promote service
excellence, improve the current average waiting
time/SDT for all services.
Referral marketing - Exert maximum effort to broaden
customer base trough existing customers of the bank.

COMMERCIAL BANK OF
ETHIOPIA
Day 2:
Lunch
89
CBE-CATS Training
Reflection Questions
1.What are financial resources for

a bank?
2.How do you define saving?
3.What are the motives for
saving ?

MOTIVES FOR SAVING

SAVING MOTIVES

2. HUMAN RESOURCE
MANAGEMENT
The Banks human resource both at leadership and
professional levels must uphold critical competencies
that match world class standards.
A comprehensive HR strategy is designed and
significant progress has been made in instituting the
strategys packages.
Efficient organizational structure must be introduced
in response to the size of the Bank and to ensure
that there are right people at the right positions.
CBES PMS CYCLE
Business Targets are evaluated on a quarterly basis;
Leadership and Value competencies are assessed annually;
All employees are assessed for core value competency
proficiency;
Leadership competencies are assessed for all employees in
supervisory roles;
Selected leadership competencies are assessed for
employees JG 13 and above in non supervisory roles;
All assessment areas have equal importance;
Final annual scores are on a weighted average score basis;

CBE ORGANIZATIONAL
STRUCTURE
CBE broadly classify process in to two: CORE AND
SUPPORT
Core process ( reason why organization Exist):
CATS, TS, CREDIT & IFB
Support Process (Assist Core process to achieve
purpose of Organization): LEGAL, HR, RISK AND
COMPLIANCE, FACILITIES, IS, BUSINESS
DEVELOPMENT

ORGANIZATIONAL
STRUCTURE

CATS PROCESS DESIGN
PRINCIPLE

CATS PROCESS
STRUCTURE

BRANCH STRUCTURE

DUTIES AND RESPONSIBILITIES OF
J. OFFICER
As a Maker:
Attend customers at the counter properly and with
due respect
Identify customers (KYC);
Process customers account opening and perform
cross selling activities;
Scan customers and authorized staffs signatures;

DUTIES
Receive cash from all types of transactions within
the branch;
Post all type of transactions;
Prepare cash and non-cash tickets/ instrument;
Process clearance of negotiable instruments;
Pays cash to all types of transactions within his/her
limit

DUTIES
As a Checker:
Ensure the correctness of account opening
documents and opened accounts;
Check and confirm scanned signatures;
Code remittance messages;
Transfer remittance messages to the paying

branch/CPC through available Medium

DUTIES
Respond referral request for deposit and payment
as per the limit;
Signs or countersigns on documents and all
transaction tickets;
Check blocking order, account closing, lost
instruments report and registration of delinquent
customers.

DUTIES ...
Adhere to branch cash control and security
requirements in control of cash and negotiable
instruments;
Reconcile, settles suspense accounts and produce
periodic report of accounts balance;
Complete other related duties as assigned.

EXPECTED RESULT FROM
MAKER CHECKER
Delivery of efficient service as per the standard
set;
Efficient and accurate handling operational duties;
Proper utilization of resources;
Proper customer handling;
Timely reporting to the concerned organ.

COMMERCIAL BANK OF
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Day 2: Afternoon
Tea/ Coffee Break
106
CBE-CATS Training
COMMERCIAL BANK OF
ETHIOPIA
CHAPTER II
CUSTOMER
CLASSIFICATION
AND
FEATURES OF PRODUCTS
CBE-CATS Training
CHAPTER OBJECTIVE
At the end of the chapter, trainees will be able:
To identify various types of customers;
To know the importance of customers identification

and due diligence;
To recognize the purpose of KYC norms;
Develop and cultivate knowledge of professionalism

in meeting customer needs and expectations;
CBE-CATS TRAINING
4/23/17 108
CUSTOMER CLASSIFICATION
Who is Customer to the Bank ?

CUSTOMER ...
According to CATS procedure, Customer shall be defined
as any legal person or natural person with whom the
bank
agrees to conduct business.
Broadly, customers of the bank can be called:
1. Prospect customer - is a proposed (potential) customer

in which the bank assumes to deal with business;
2. Individual customers - are an individual (natural)
person who has a given name;
3. Corporate customers - it is any firm; organization,
enterprise, associations, government office and the like
which the bank is dealing with.
KNOW YOUR CUSTOMER (KYC)
NORMS
KYC stands for Know Your Customer.
It aims to understand who your customer is.
The KYC process involves verifying customers'

identity and address by asking them to submit
documents that are accepted as relevant proof.
According to NBE directive Banks shall identify the

customer (whether regular or occasional, natural or
legal person) and verify the customers identity
using reliable and independent source.

CUSTOMER DUE DILIGENCE

KYC controls (Basel Committee
on Banking Supervision)

CUSTOMER
CLASSIFICATION OF CBE
For effective management of the account opening
process and to
build valuable customer relationship; the CBE shall

have the
following customer classifications:
I. Volume and value of transaction

II. Economic Ownership Dimension

I. Volume and value of transaction
The Bank classifies the customers in to the following
three broad
customer segments according to their value:
I. Retail /consumer/customers
II. Business customer
III. Premium customers

II. ECONOMIC OWNERSHIP
The Bank shall have four broad classifications by
economic
ownership namely:
A. Private
B. Government
C. Public, and
D. Associations.

A. PRIVATE TYPE CUSTOMERS
Private: The Private category shall have the following
sub classification:
i. Individuals- Shall include single individual as well
as married
couples, work colleagues, school mates and other
individuals that approach the bank for the purpose
of joint account maintenance;
ii. Private Businesses- Shall include Sole
Proprietorship, Ordinary Partnership, Limited
Partnership, General Partnership, Joint-Venture,
Private Limited Companies, Share Companies in the
private4/23/17
sector, Private financial companies and
A. PRIVATE
iii. Other Private entities shall include:
a) All forms of organization which are not formed in line
with the Ethiopian law and operate under special
agreement with the Ethiopian Government;
b) Various embassies operating in Ethiopia and
International and regional organizations working in
Ethiopia like the UN, AU, EU, IGAD, NEPAD etc; and

A. PRIVATE
c) Funds collected from the community, donors, and
other institution which are not legally formed but
facilitated by Government entities (Ex. Woreda).
) The typical entities under this stipulation include
funds collected from the community for road,
water and other infrastructures.

B. GOVERNMENT TYPE
CUSTOMERS
The Government category shall have the following sub
classification;
I. Federal Government Entities:

) All ministries established under the federal
government state owned higher learning
institutions(including universities, colleges and
other higher learning institutions);
) All government administrative agencies;

B. GOVERNMENT
Include Federal autonomous organs which are
accountable to the house of representative
including; Ethiopian human right commission, The
Ethiopian Election Board and others.
II. Regional Government Entities This

classification shall include all tiers of regional
government, city administrations, state owned
primary and secondary schools and any other
establishment under the regional government.
C. PUBLIC ENTERPRISES
The public enterprise category shall include:
Enterprises established as proclamation No. 25/1992
and share companies established by Government;
All government owned enterprises like Ethiopian
Airlines Enterprise, Ethiopian sugar Corporation,
Ethiopian Electric utility, Ethiopian Power cooperation,
Ethio-Telecom and etc.

C. PUBLIC ENTERPRISES
Public Enterprises are companies who are
established and announced on the Negarit
Gazetta.
The Board of Directors appoints the Chief Executive
or the General Manager or the President of the
Company, who is responsible to open, operate, and
delegate on the accounts to be opened.

D. ASSOCIATIONS
Associations shall have the following sub classification:
1.Cooperative Societies: Shall include:
)Agricultural cooperative societies, Housing cooperative societies,
industrial and artisans producers cooperative societies,
consumers cooperative, saving and credit cooperative societies,
fishery cooperative societies, mining cooperative societies
)It also include various establishment of cooperatives i.e. unions
and league

D. ASSOCIATIONS
2. Charities and societies agency:
) Include all local and foreign based charities;
3. Other associations: shall include professional

associations and clubs sectorial associations,
labor unions, trade unions, women and youth
associations, traditional Equb and Edirs, and
all religious organizations and political parties.

COMMERCIAL BANK OF
ETHIOPIA
Day 2: Afternoon
End of Day 2
126
CBE-CATS Training
COMMERCIAL BANK OF
ETHIOPIA
Day 3: Morning
Start by Reviewing Day Two
127
CBE-CATS Training
Reflection Questions
List the various deposit product
offered by CBE?
Discuss the distinguishing features of
Saving and Demand deposit account?

CBES DEPOSIT PRODUCTS

I. DEMAND DEPOSIT
ACCOUNT (LCY)
Features:
It is a non interest bearing bank account;
It needs higher minimum balance to be maintained as
compared to saving account (Min. Br.500 or Br. 1000);
Penalty is charged if minimum balance is not maintained;
It is of a continuing nature;
All demand deposit accounts shall be operated by literate
and able to sign a written signature i.e. Thumbprint shall
not be accepted to operate the demand deposit accounts

DEMAND
It requires KYC norms to be completed before
opening (because it allows third party
involvement);
No restrictions on the number and amount of
deposits;
No restrictions on the number and amount of
withdrawal as long as the account have sufficient
balance;
Opened and operated by literate customer only.
DEMAND ...
Advantages:
It facilitates business transactions;
It enables account holders to carry out their

transactions properly and promptly;
The account holders withdraw without any limit;
It helps to make a direct payment to their creditors by
issuing checks;
It enables the bank to collect money on behalf its
customers;
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.

DEMAND ...
Zero Balance is an account opened to
government office only with special agreement
with MOFED, its like overdraft account but not
paid any interest because overdraw amount
replenish with same date from mother account at
the end of business date.
Crediting Zero balance account with any type of
transaction is forbidden except replenish day
to day withdrawal.
DEMAND ...
An ECX-related account is a special type of
account opened in an electronically networked
branch for a member of the Ethiopian Commodity
Exchange to facilitate the trading of commodities
throughout the country.
CATSs CPC is the single point of contact for the
ECX to open an account.
ECX related accounts:
Member Pay in/Pay out accounts: opened by
members who are trade operators;
Client pay in/Payout accounts: opened by
intermediary members;

SPECIAL DEMAND DEPOSIT
A special-Demand Deposit account is a non-
interest-bearing account that is opened to fulfill the
requests of those customers who, for one reason or
another, do not want their deposits to accrue them
any interest and payable on demand.
Special-Demand deposit account operates by Pass

Book.
It is an hybrid of Demand and Saving account.

SAVING DEPOSIT ACCOUNT
The existence of most financial institutions namely
commercial banks is tied to finical resources that
they mobilize.
Saving is all income not spent on goods and
services which are used for current Consumption.
(conventional definition)
Saving is reduction in consumption. (contemporary

SAVING ACCOUNT
Features:
No restrictions on the number and amount of deposit;
Withdrawal allowed subject to certain restrictions;
The money usually withdrawn by withdrawal slip;
It is interest bearing (currently the rate is 5%);
A minimum amount has to be kept on saving account to

keep the
account functioning (at present birr 25);
Usually operated by passbook & ATM-Card ;

SAVING
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;

COMMERCIAL BANK OF
ETHIOPIA
Day 3: Morning
Tea/ Coffee Break
140
CBE-CATS Training
SAVING WITH ADDITIONAL
FEATURES AND ADVANTAGES
A. Women saving Account
Features
The account is provided only for women.
The account can be opened individually, jointly or

cooperatively
ATM card separately designed for holders of women
Saving Account will be provided so that the
customer(s) can purchase the type of goods/services
she/they4/23/17
need from the selected suppliers or can use
FEATURES AND
ADVANTAGES
Benefits
Account holders enjoy higher interest rate of 5.12%
Account holder gets discount on goods and services
from the suppliers.
Develop saving habits of women and the general
public
It build up future planning
It gives finical independency for the teen youth

FEATURES AND
ADVANTAGES
B. Youth Teen Account
Features:
The account is opened for youth-teen below the age
of 18;
The account is opened jointly with
parents/guardians if the youth is below the age of
14; and can be opened independently by the youth
if the youth is above 13 years old and has his/her
own income;
ADDITIONAL FEATURES
AND ADVANTAGES
Advantages
Gain higher interest rate compared to ordinary
saving
account (currently 5.125);
Develop saving habits of self employed teen-youth
It build up future planning;
It gives financial independency for the teen youth;
It gives control for young account holders who
generate
their own income.


C. Youth Account
Feature
The account is opened for persons whose age is
between the ages of 18-24
Advantages
Gain higher interest rate compared to ordinary
saving account (currently 5.125)
Develop saving habits of the youth
It build up future planning
It gives finical independency for the youth
It gives control for young account holders

D. Mortgage/special / saving
Account
Feature
A special saving account for the purpose of
purchasing residential house
The account is opened by customer filling pre
contract form intended for the purpose
Account opening was only made during the
registration campaign period.
Customers need to fulfill additional
requirements/like not having residential house in
their name ,resident of certain place (in this
occasion A.A)/

No withdrawals are allowed from the special saving
account unless the depositor willingly cancels the
contract and notify this for the branch manager in
writing /if the customer wishes to withdraw from the
project ,he/she will forfeit the higher interest rate
and will paid with ordinary saving interest rate/
It is linked to 10/90, 20/80 and 40/60 government
housing projects;
Account holders need to place a regular deposit or
make pre/post compensating
4/23/17 CBE-CATS TRAINING deposit within the
147

Advantages
Gain higher interest as compared to the ordinary
saving account /currently 5.5% only 40/60/ ;
Develop saving habit ;
It builds of future planning habit;
Will serve as an equity contribution for the final

price of housing.


E. Education saving account:-
Purpose oriented saving account designed to
encourage parents and working student to save for
future higher education;
Target Population Working student in primary and
secondary school;
Employees want to continue higher education,
Parent who save for their children.
Benefit of Education saving
Better interest rate (5.125%)
Scholarship or seeding fund for prize winner.

FIXED TIME DEPOSIT
It is opened for a particular fixed period (time) by

depositing particular amount of money. The term
Fixed deposit means deposit repayable after the
expiry of a specified period.
Features
The amount deposited only once
150
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
FIXED TIME
Advantages
It encourages saving habits for a longer period of time;
Enables the depositors to earn higher interest rate;
The depositor can get loan facility from the bank;
On maturity the amount can be used for planned

expenditure;
The bank can get the fund for a longer period of time, it
indirectly boost current development ;
The bank can also invest such funds in long term areas;
Better Interest rate min 5.2.

COMMERCIAL BANK OF
ETHIOPIA
Day 3:
Lunch
153
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

FOREIGN
Types of foreign currency account may include:
A. Non-Resident Transferable Foreign

Currency
Account (NRT FCY)

) Is an account maintained in foreign currency by the debit
of
which funds can be transferred abroad without the

necessity of
obtaining foreign exchange permit.

FOREIGN
B. Non-Resident Transferable Birr
Account (NRT)
Is an account maintained in Birr by the debit of
which funds
can be transferred abroad in foreign exchange

without the
necessity of obtaining foreign exchange permit (all

sources for
deposits in this account should be in foreign
FOREIGN
C. Non-Resident Non-Transferable Birr Account
(NRNT)
Eligible persons can open Non-Transferable Birr Account to
meet their local expenses need.

It should be understood, however, that the account is
designated as '' Non-Transferable Birr Account'' to indicate the
fact that its convertibility is not automatic but must be

approved.
(All sources for deposits in this account should be in foreign

currency).
FOREIGN
D. Foreign Exchange Retention Accounts :
Are foreign currency accounts which are opened for exporters and
recipients of inward FCY remittance. (Foreign Currency retention
A & B accounts).
Retention Account A:
A type of Retention account which is used to deposit 10% of the

earned foreign currency .
The amount will be used to settle account holder obligation

in foreign currency or other ways converted to local currency, when
request by the account holder.

FOREIGN
Retention Account B:
A type of Retention account which is used to deposit
90% of the earned foreign currency up to 28 days
after which period any balance shall automatically
be converted in the next working day into local
currency and equivalent Birr amount will be credited
to the customer ordinary current account .

FOREIGN
E. Diaspora a/c:
) Is a foreign Currency accounts opened in the name of
Ethiopian and Foreign nationals of Ethiopian origin.
) Diaspora accounts are classified as:
i. Diaspora Demand deposit account
ii. Diaspora Fixed Time deposit
iii. Diaspora Non - Repatriable account

FOREIGN
E. Diaspora a/c:
) Is a foreign Currency accounts opened in the
name of Ethiopian and Foreign nationals of
Ethiopian origin.
) Minimum amount of deposit to open an account is
USD 100 and maximum amount of deposit
allowed in a single account is USD 50,000 or its
equivalent in EURO or GBP.

SPECIAL FEATURES OF
ACCOUNTS
The local deposit products may have the following additional
distinguishing features based on the purpose of the account
and
the request of the customer/s:
Account for minors

Joint Accounts
Earmarked Accounts
Account for interdicted persons
Staff Accounts
Cash Indemnity Account
Overdraft Account

ACCOUNTS FOR MINORS
It is a saving account opened for individuals below
the age of 18;
The account shall be opened and operated by
parents or legally appointed tutor;
At time of reaching major the total balance will be
transferred to an account maintained and operated
by the major.

EARMARKED ACCOUNTS
Joints accounts shall be maintained in name of two or
three individuals to jointly operate the account
Joint accounts can be And Account and And/or Account
The nature of And Account is that all the parties should

be present at the counter of the bank to give payment
instruction and withdraw money. Whereas And/or
account type allows individual account holders to
withdraw money and give payment instruction separately.

ACCOUNTS FOR INTERDICTED
PERSONS
It is an account opened and operated by the Tutor
appointed by the court on behalf of the interdicted
person/s.

STAFF ACCOUNTS
Opened for CBE staff members and category shall
be changed to non-staff category codes when the
staff leaves the bank; and
Staffs are not allowed to process transaction of
their own in the system except in payment
channels such as internet, mobile and card
banking.

CASH INDEMNITY ACCOUNT
Opened in the name CBE staffs, who are engaged
cash related activities and entitled for cash
indemnity allowance;
Withdrawals is approved by the CSM for settling
cash shortage reported by the account holding staff
and confirmed by the branch controller;
Payments may be effected to the account holding
staff after one year of leaving cash related post for
which she/he was entitled the cash indemnity.
OVERDRAFT ACCOUNT
It is a demand deposit account with augmented

feature that allow customers to withdraw money
beyond their credit balance; and
It can be withdrawn up to the approved limit;

SERVICES BY CATS
CATS process shall provide the following services:
a) Muday Bank Service

b) Fund Transfer
c) Local Money Transfer
d) Foreign Money Transfer
e) Safe deposit box
f) Agency Services

MUDAY BANK SERVICE
Muday Bank service is offered by the bank to
accumulate and save money in designated box and
deposited in to the respective customer account.
Muday Bank service shall be provided by the bank
with dual control.
Muday Bank service is mainly designed for petty
traders, semi-skilled workers, small holding farmers,
shoe polishers and other similar individuals.

MUDAY
Muday Bank service is offered by the bank to
accumulate and save money in designated box and
deposited in to the respective customer account.
Muday Bank service shall be provided by the bank
with dual control.
Muday Bank service is mainly designed for petty
traders, semi-skilled workers, small holding farmers,
shoe polishers and other similar individuals.

COMMERCIAL BANK OF
ETHIOPIA
Day 3: Afternoon
Tea/ Coffee Break
172
CBE-CATS Training
CHAPTER - III
CUSTOMER
CREATION AND
ACCOUNT
OPENING
DAY 3
Morning

CHAPTER OBJECTIVE
At the end of the chapter participants will be able to:

CONTENT OF THE
CHAPTER
Introduction
Eligibility Criteria
Document Requirements
Customer Creation
Account Opening

ACCOUNT OPENING STAGES

ELIGIBILITY CRITERIA
Before customers are
created and account is
opened on the system
checking of the eligibility
requirement is mandatory
for the CSO assigned on
the dedicated window

ELIGIBILITY CRITERIA TO
OPEN AN ACCOUNT

ELIGIBILITY

ELIGIBILITY

ELIGIBILITY

ELIGIBILITY

ELIGIBILITY

ELIGIBILITY

DISCUSSION QUESTION
1. Identify and list eligible entities that
can open;
a. Saving and Current Account
b. Womens Account
c. Educational Saving Account
d. Youth Account
e. Teen-Youth Account
f. Foreign Currency Account

COMMERCIAL BANK OF
ETHIOPIA
Day 3: Afternoon
End of Day 3
187
CBE-CATS Training
COMMERCIAL BANK OF
ETHIOPIA
Day 4: Morning
Start by Reviewing Day Three
188
CBE-CATS Training
DOCUMENT
REQUIREMENTS

DOCUMENT

DOCUMENT
One valid and renewed I.D. card

Renewed trade license
Individual
Trader One recent passport size photograph
Tax Identification Number(TIN)

DOCUMENT

DOCUMENT

DOCUMENT

DOCUMENT

DOCUMENT
Colleges and University (Government
Owned):
Letter of authority from Ministry of Education or from
their respective university.
OR
Letter of authority from the respective university or
from Regional Education Bureau as appropriate.
OR
If the institution is established by proclamation and
announced through a Negarit Gazeta, account
opening will be by the letter of request of the
Institution;
Valid and renewed I.D. Card of the authorized person

to operate the account.

DOCUMENT
Private schools and colleges
For Private limited company, all the required
documents stated under PLC.
If the private school or college is established
individually, all the required documents stated
under individual trader person and school or
college shall be opened.
Valid and renewed I.D. Card of the authorized
person to operate the account.

DOCUMENT
Public Enterprise
Public enterprises shall produce the Negarit
Gazetta to its establishment.
Letter of appointment of the General Manager by the
Board of management
Letter of request to open and operate the account by
the general manager
Valid and renewed I.D. Card of authorized signatories.

DOCUMENT
Cooperative Societies
Certificate of registration issued by the
appropriate authority.
Approved and registered cooperatives rules and
regulations.
Minutes of members resolution at the last
general assembly.
A letter of request by the chairperson to open
and operate current account.
person.
DOCUMENT
Trade Union
Trade unions shall produce:
Certificate of registration from the Ministry or
region bureau of labor and social affairs.
Approved and registered rules and regulations of
the trade union.
Resolution of the general assembly appointing
the executive committee of the trade.
Minutes of the executive committee.
Letter of request by the chairperson to open and
operate the account.
signatories.

DOCUMENT
Associations and club
Certificate of registration
Rules and regulations of the associations.
Minutes of members resolution at the last
general assembly appointing the executive
committee.
Minute of the executive committee and request
letter by the chairperson to open and operate
the account.
Letter of request by the chairperson to open
and operate the account.
signatories.
COMMERCIAL BANK OF
ETHIOPIA
Day 4: Morning
Tea/ Coffee Break
202
CBE-CATS Training
Discussion Question
Identify and list the required documents to open an
account for
each customer type.

Individual customers
Edirs
Partnership
Private limited company
Share companies
Association and Clubs

DOCUMENT
Religious Organizations and
Others
The Ethiopian Orthodox Tewahido
Church
Ethiopian orthodox Tewahido Church located in
Addis Ababa, shall produce letter of authority
either from the patriarch or general manager
Addis Ababa Diocese secretariat.
Ethiopian Orthodox Tewahido Churches located
outside Addis Ababa shall produce letter of
authority from the patriarch to open and
signatories
DOCUMENT
Islamic Religious Institutions

Obtain a letter of authority signed by
the chairman of Ethiopian Islamic
Affairs supreme council to open and
operate bank account.
Valid and renewed I.D. Card of the
authorized signatories.

DOCUMENT
The Ethiopian Catholic Church
A letter of authority from the secretary general of
the Ethiopia catholic secretariat to open and
operate bank account.
signatories.
The Ethiopian Evangelical Church

Mekane Yesus
A letter from the president of the Ethiopian
Evangelical Church Mekane Eyesus Central Office
to open and operate bank account.
signatories.
DOCUMENT
Other religious organizations
Certificate of registration from the Ministry of
Justice or Federal (Regional) court offices and
the account shall be operated by their
chairperson (president) afterwards.
Valid and renewed I.D. cards of the
authorized signatories are required.

DOCUMENT
Accounts Opened for special purpose
When an account is to be opened in the name of minors, interdicted
persons, a bankrupt firms and the like:
Documents establishing signing authority of a tutor or a
commissioner or a liquidator and change thereof should be
attested by the branch or District office or legal advisors as
appropriate.
When the legal opinion on the authority of the tutor or
commissioner or liquidator, as the case maybe, has been
obtained a signature card with a name of the signatories has
to be maintained.

DOCUMENT
Accounts for minors
When there is the need to open account in the name of
the
minors, the following documents should be produced:
Proper application of the guardian for the minor.
Court decision for the appointment of the guardian
for the minor.
Kebele I.D. card, church certificate or municipality
certificate or hospital certificate, etc., which
proves the date of birth of the minor.
Proper address of the applicant/guardian.
DOCUMENT
Accounts for Interdicted Persons
The ruling by a court of law pertaining to the
interdiction;
An official letter from the court ordering
appointment of the Tutor;
Two recent photograph of the parent and the
interdicted person;
Valid and renewed ID cards of the Tutor and the
interdicted persons.

DOCUMENT
An Account for a Firm that is in the
Process of being Liquidated
The document containing the courts ruling with
regard to the companys bankruptcy;
The courts decision pertaining to the liquidation of
the bankrupt company;
An appointment of the liquidator by the court and the
legal power given to her or him for the purpose; and
The ID cards of the authorized persons.

DOCUMENT
Account for Share companies under
formation
A letter of authority from the licensing body will

have to be presented.
A valid and renewed ID card of the person
authorized to operate the account;

DOCUMENT
Account for firms under the process of
registration
A letter of authority from the licensing body will have to be
presented.
A valid and renewed ID card of the person authorized to
operate the account. However, the account will be blocked
until they are presented the Investment license and
Principal registration.
If their request fails, the balance should be released up on
presentation of a letter of consent from the licensing organ.

DOCUMENT
Account for Overseas Organizations Which Are
Working in Ethiopia.
Overseas organization due to bilateral, contractual,
multilateral, etc. agreement work in Ethiopia without
establishing branch office may request for account opening for
local payments.
In case of Contractual Agreement
Power of attorney to the country representative and shall be
authenticated and registered.
Memorandum and article of association of the oversea
organization which is sealed by foreign affairs.
Contractual agreement and Supporting letter from the local
organizations giving the contract.
A valid and renewed Id card of the person authorized to
operate the account;
DOCUMENT
In case of Bilateral or Multilateral
Agreement
A letter from Ministry of foreign affairs that requests
opening of the account by specifying the delegated
person to open and operate the account and/or the
representative of the organization.
The letter of Ministry of foreign affair shall be signed
by the person delegated by the Ministry to that
effect and shall be verified by the bank.
A valid and renewed Id card of the person
COMMERCIAL BANK OF
ETHIOPIA
Day 4
LUNCH
216
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
Application letter
Diplomatic ID-card or passport
DOCUMENT
International organizations
Permit from the National Bank of Ethiopia

NBE
Application letter
ID card or passport of account signatories

DOCUMENT
Foreign investors
Memorandum of association (for companies)
Article of association (for companies)
Registration certificate
A letter which states manner of operation and
signed by the person for whom the mandate is
given by article of association (for companies)

DOCUMENT
Non Governmental Organizations
(NGOs)
An application letter which states manner of
operation from the head office/regional office of
the organization

DOCUMENT
Expatriate employees of international
organizations
Application letter
Valid and renewed I.D. card from employer
organization, or deriving license, or passport or Trade
license.
Letter from the employer which confirm that the
earning is paid in foreign exchange

DOCUMENT
Non-resident companies
Memorandum of association
Article of association
Registration certificate
A letter which states manner of operation and
signed by the person for whom the mandate is
given by article of association
DOCUMENT
Non Resident Ethiopian and Foreign
Nationals of
Ethiopian origin
Application form
Valid passport and/or identification card
Certificate of ownership entitlement for the
organization and/or article and memorandum of
association.
Application duly authenticated by the Ethiopian
Embassies, correspondent banks or remittance
service providers which proves their identities
Two or more eligible depositors may jointly open a
single account.
The foreign currency accounts are to be
maintained in USD, EURO, & POUND STERLING.
DOCUMENT
Exporters
Application letter
Trade license
Recipients of inward remittances
Application letter
Valid and renewed I.D. card from employer
organization, or deriving license, or passport or Trade
license.
Evidence which certifies that the applicant is a regular
recipient of foreign exchange
CUSTOMER CREATION
Customer Creation is the process of encoding
Customer record to computer system(T24) or
Register book based on the details on the account
opening application from.
Three types of menus used on the system to

create customer
Individual Customer-individual customers and
traders
Corporate Customer-business establishments
Prospect Customer - potential user

CUSTOMER
A prospect customer changed to customer
when the criteria for individual /corporate
customer is satisfied.
New customer ID can be created only if

the customer has no account in any of the
networked branches of the CBE

CUSTOMER
Duties and Responsibilities of performers in
Customer Creation
Duties and Responsibilities on
customer creation

CUSTOMER
Duties and Responsibilities of performers in
Customer Creation
Duties and
Responsibilities

DISCUSSION QUESTIONS
Identify and list the required documents to
open an account
for each customer type.
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

COMMERCIAL BANK OF ETHIOPIA
DAY-4:
Afternoon
Tea/ Coffee Break
CBE-CATS TRAINING
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

ACCOUNT
ALTERNATIVE CHANNELS OF ACCOUNT
OPENING REQUEST
Custo
Custo
mer
mer

ACCOUNT
Duties and Responsibilities on Account
Opening

ACCOUNT
ACCOUNT
Duties

ACCOUNT
ACCOUNT
Duties

ACCOUNT
Duties
Duties

ACCOUNT
ACCOUNT
Duties
Document

ACCOUNT KYC analyst

ACCOUNT
Special types of Accounts Opening
These types of accounts are not considered as

product by their own merit rather they designed
to meet special circumstances and customer
requests .
All the procedures that are to be followed to open
those accounts (a current or a savings account)
shall be applied except issued raised in the
following slides

ACCOUNT
Special types...
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

ACCOUNT
Special types...
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

ACCOUNT
Special types...
Accounts for interdicted

persons
Designated by a court of law as being incapable of
discharging her/his legal rights, or be interdicted.
The court normally appoints a guardian for the
incapable or interdicted person.
opened and operated by the guardian appointed by
the court on behalf of the interdicted person/s.
Staff Accounts
A staff of CBEs can open both savings and current
accounts
A staffs account should be treated like all other
individual accounts.
ACCOUNT
Overdraft Account Maintenance
When the overdraft limit is approved, the Central
Credit Processing Center (CCPC) shall change the
category code of the Current Account to
overdraft and set the limit to the account.
The customer can withdraw to the amount of the
maximum limit set
It is renewed annually based on the credit
procedure of the bank

ACCOUNT
Fixed-Time Deposit Contract

DISCUSSION QUESTIONS
Discuss alternative channels for lodging
account opening request;
Describe the role of CSO-maker in account
opening process;
Discuss the role of CSO-checker in account
opening process;
Discuss about the special types of accounts
and identify features that differentiate from
ordinary accounts

DAY-4:
End of Day 4
CBE-CATS TRAINING
DAY-5
MORNING
Start by Reviewing Day 4
CBE-CATS TRAINING
COMMERCIAL BANK OF
ETHIOPIA
CHAPTER IV
NEGOTIABLE INSTRUMENT

CBE-CATs Technical Training
CHAPTER OBJECTIVE
At the end of this chapter, trainees will be
able:
To Understand the meaning of negotiable instruments.
To identify the types of endorsement and their peculiar

nature.
To identify the valid and acceptable negotiable
instruments presented either for payment or collection.
249 CBE-CATS TRAINING 4/23/174/23/17

NEGOTIABLE INSTRUMENT
Definition of negotiable
instrument:
A negotiable instrument is one which is
transferable from the holder to the other
party through endorsement.
There are different kinds of negotiable

instruments, for instance:
Cheque
CPO Cash payment order
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.

NEGOTIABLE.
Cheque
The definition of cheque from banking perspective can
be:-
It is simply an order written by someone, a drawer
directing the bank, the drawee to pay a specified sum

to the order of a certain named person(s),the payee .
It can also be defined as an unconditional order in
writing, signed by the drawer requiring the bank to pay

on demand a sum of certain money to, or to the order of
a specified person or to the bearer.
252 4/23/17 CBE-CATS TRAINING 252

252
NEGOTIABLE.
The cheque is also a means to directs the bank to
debit the drawers account by the value specified
on the cheque.
The three parties involved in a cheque transaction
are:- link slide\cheque.pptx
Drawer account holder
Drawee - the bank
Payee - beneficiary

NEGOTIABLE.
The major contents /elements of a
check
The name and emblem/symbol/ of the
issuing bank;
The name of the issuing branch;
The date on which the check was issued;
The name of the account holder and the

account number;
NEGOTIABLE.
The amount of money shown in both
words and figures;
The checks number; and
The signature of the account holder.

NEGOTIABLE.
Precautions to be taken by the
customer
In general, to protect forgery and fraud,
customers attention is necessary on the following
points:
All blank cheques should be kept in a safe
place under lock and key.
All cheques should be written in ball point
4/23/17 pen. CBE-CATS TRAINING 256
NEGOTIABLE.
The amounts in words and figures should
begin closer to the printing
Any alteration on the cheque should be
confirmed by the full signature of the
drawer.

NEGOTIABLE.
Essentials /Characteristics of a
cheque.
The instrument must be in writhing.
Any alteration on the cheque should be

confirmed by the
full signature of the drawer.
The instrument must contain an unconditional
order.
The drawer must sign the instrument
NEGOTIABLE.
Drawn on a Specified Bank, the name of the
bank and the name of the specific branch
should be specified.
The order must for a certain sum of money
which is only-legal tender currency
Payee to be specified-it can be a legal or
natural person
Payable on demand-payable on demand at
sight or at presentment (no acceptance is
required)
NEGOTIABLE.
A cheque drawn to cash or bearer can be paid
to the presenter. It should be endorsed by the
bearer at the time of encashment or crediting
to his/her account.
we should see whether the endorsements on
the cheque are regular or not; but need not
dilate with the verification of the genuineness
or validity of the endorsement, as we do not
4/23/17
have the specimen signature of endorser
.
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.
If the check is endorsed to an individual, however,

the last endorsee should bring a confirmation letter
from the payee/checks issued in the name of
organization or legal entities by no means should be
paid in cash.

NEGOTIABLE.
A cheque drawn in the name of corporation, Co-
operatives or legal bodies in general cannot be
paid in cash. Such cheques shall be credited to
the payees or endorsees account.
Cheque issued in the name of legal entities
should bear a seal whenever possible to be
credited to account

NEGOTIABLE.
Only the drawer should endorse a cheque drawn
to self.
A cheque drawn to specific person shall be paid
to such person or credited to his/her account
upon endorsement. He can transfer to another
person by endorsement.
A cheque drawn to joint account holder (or in the
name of two persons) shall be paid against their
endorsement.
A cheque drawn to the order or alternative
NEGOTIABLE.
If the check is issued to the order of the
specified person followed by the word payee
only is written on the top left corner of the face
of the check, only the payee/beneficiary thus
indicated is allowed to cash the check.
Crossed checks -Such checks bear two
transverse lines across their faces. They are not
at all paid in cash, but deposited into the
accounts of the beneficiaries/payees
NEGOTIABLE.
The Restricted Negotiability of a cheque in
addition to the general crossing it contains words
like Payable to account, Account payee only,
which limits the cheque from further transferability.
it can be paid to beneficiary by crediting to the
account.
In case a cheque is dishonored, the bank should
return it
with a slip disclosing the following reasons for
dishonor.

DAY-5
MORNING
Coffee/ Tea Break
CBE-CATS TRAINING
NEGOTIABLE.
Valid reasons for dishonoring

/return of a cheque are:
When the balance of the customers account is
insufficient to meet the value of the cheque.
When the customer closes the account before
the cheque is presented for encashment.
When the cheque bears different signature
than the specimen of the drawer.

NEGOTIABLE.
When the cheques are issued against the cheques sent for
clearance (deposit in transit)
When some discrepancy appears on the face of the
cheque which creates suspicion as to the its genuineness .
When the customer has already lodged stop payment.
When the cheque is post dated and is presented for

payment before its ostensible date .

NEGOTIABLE.
In those cases where endorsement is not in order
(Endorsement Irregular)
when the legal representatives or hairs has applied to
the bank with the necessary evidence that may be given
by the court to stop the account.
When an outdated/ stale check is presented for payment
after six months beginning from the date of its issuance

NEGOTIABLE.
When an undated check is presented for
payment/collection.
In case a mutilated cheque is presented, one which is
torn into two or more pieces and if the main contents of
the cheque are illegible.
In case of joint account/corporate customers, when the
check is presented in the absence of both or all the
signatures of the authorized persons empowered to

NEGOTIABLE.
Cashiers payment order (CPO)
C.P.O is an endorsable payment instrument
issued up on request of a customer for specific
purpose; link slide\CPO.pptx
Such as to participate in bid, to effect payment

to government offices mainly tax, etc.

STOP PAYMENT ORDER
Stop payment can be defined as a request
made to a bank to cancel a check or payment
that has not been processed yet.
A stop payment order is issued by the account

holder, and can only be enacted if the check or
payment has not already been processed by the
recipient.
The amount of money on the check under the
stop-payment order will not be withdrawn until
the account holder gives, in writing, an order to
cancel the stop-payment order,

STOP PAYMENT.
The placement of stop payment order shall be
cancelled upon the expiry date of the check or
by the court order.
At the time a stop-payment order is placed,
there must be sufficient fund in the account that
covers the value of the check requested to stop
payment.
The stop payment sanction shall be released if
the drawer fails to produce police evidence
within 15 working days that show the stop-
cheque-payment order was in fact requested as
the cheque was lost or stolen.

STOP PAYMENT.
In the case of an overdraft account, if the stop-payment
order is placed, the amount of money on the check shall be
kept by deducting from the limit of the over draft account.
The necessary particulars that the CSM needs to Incorporate
into the system by colleting the service charge; are:
The checks number,
The amount of money involved,
The date on which it was issued
The name of the payee/beneficiary;
The record will be kept until the account holder revoke his
request .
The branch controller shall receive the stop-payment-order

branch controller.

INSUFFICIENT CHEQUES
Meaning of insufficient cheque
Whenever a drawer issues a cheque with out the
availability of sufficient fund in the account the
bank will refuse payment or dishonor it .
In simplified terms, a cheque has been presented
for clearance, but the amount written on the
cheque exceeds the available balance in the
account.

INSUFFICIENT
The subsequent actions the bank take for dishonored Checks due to

insufficient fund are as follows:-
First instance
Record the incident for the first time in the Dishonored Cheque Register;
and restricted all debit (outgoing) transactions against this account until
the dishonored cheque is fully paid to the payee or equivalent amount
is blocked pending the payment to the payee

INSUFFICIENT
Second instance
The cheque shall be returned to the payee with a
slip disclosing the reason for dishonor.
Record the incident for the second time in the
Dishonored Cheque register, restricted all debit
(outgoing) transactions against this account until all
the cheques which have been dishonored registered
here in above are fully paid or equivalent amount is
blocked pending the payment to the payee(s); and
levy a fine of 3% of the amount appearing on the
cheque dishonored for the second time but not
exceeding Birr 25,000 (twenty five thousand Birr)

INSUFFICIENT
Third instance
After the cheque is returned to the payee specifying
the reason on cheque return slip
Record the incident for the third time in the
dishonored Cheque register
Close the account, levy a fine of 5% of the amount
appearing on the cheque dishonored for the third time
but not exceeding Birr 50,000 (fifty thousand Birr) and
make every effort possible to collect all unused
cheque leaves & pads from the drawer and report
same to CATS CPC to close such persons demand
deposit account in all CBE branches and inform NBE.

INSUFFICIENT
If two or more checks are presented on a given
current account at same time action shall be
taken checkin accordance with the sequential
order of checks even if the reminder is not
received by the customer.
The senior customer service officer accounts is
responsible to register on the system the
returned check unpaid due to insufficient fund
with the necessary details.
INSUFFICIENT
If there is no sufficient fund in the account even to cover the
charges, nonetheless, leaves Birr.1.00 in the account balance,
debits the customers account with the remaining amount and
does close follow up on the customers account to recover the
unpaid charges.
Debit charges like legal, insurance, advertisement, such other

non-cash transactions, accrue interest against overdraft
accounts against a blocked account; and the bank may unblock
the account and make the fund available to the drawer;

INSUFFICIENT
The bank may also unblock the account and make the
fund
available to the drawer:
If the drawer presents the dishonored cheques to

the bank or the payee(s) may appear in person to
the bank and confirm in writing that the dishonored
cheques have been fully settled;
If the payee(s) fails to appear to receive a full

payment after lapse of six months of presenting the
dishonored cheque.
INSUFFICIENT
Those account holder who fulfill their obligation
shall be deleted from the dishonored cheque register
per the following table;

COMMERCIAL BANK OF
ETHIOPIA
DAY-5
Lunch
CBE-CATS TRAINING
COMMERCIAL BANK OF
ETHIOPIA
CHAPTER V
COLLECTION
284
CBE-CATS 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)

Collection
COLLECTION
Collection can be defined as amount of fund

credited to any customer or internal account in the
form of:
Cash
Cheques
Cash payment order
Draft, and
Fund transfer.

COLLECTION.
Collection of Cash for Deposit
Here the customer shall complete the standard cash
deposit voucher with the relevant information such as:
name, account number, branch's name, cash
denomination, depositor signature, telephone address etc.,
should be filled on the space provided for the purpose.
link slide\cash deposit form .pptx
The Customer Services Officer/Maker receiving the cash
by denomination against the deposit slip signed by the
depositor and the passbook, if any, from the depositor is
the primary task.

COLLECTION.
The CSO- maker should check the following points before

crediting the customer account:-
checks that the amount in words and figures is the same

on the deposit voucher;
Counts the cash by comparing it with the denominations

written on the deposit slip
Check the name and account number on the deposit slip

against the system.

COLLECTION.
Finally Credits the customers account by debiting
cash
If the deposit to be made is within her/his
discretionary limit otherwise, dual authorization
shall be requested from the concerned CSO-
Checker/Customer Service Manager
Updates the passbook balance if any.

COLLECTION.
Deposit transaction to inactive /dormant
accounts needs authorization from
CSM/Manager to complete the transaction.
The deal slip shall be hand over to the
customer as a receipt and the deposit voucher
remains in the hand of the CSO- maker for
further balancing and recording;
The branch Controller shall collect the deposit

voucher as soon as the transaction is
completed .

COLLECTION.
Collection of Cash for Local money
Transfer:
The process of local money transfer start by
customer filling application for local money transfer.
link slide\local transfer form.pptx
Once the CSO-maker check and confirmed the
details in application form including;
The beneficiary name
The amount to be sent
Remitter name /sender/
Address of the beneficiary and remitter

COLLECTION.
General Conditions for Money Transfers
The bank accepts transfer request of customers either in cash or by
instruction to debit customers account
Customers can transfer money from their account maintained in CBE
into another account or to be paid in cash.
In addition to using internet, mobile and ATM channels ,account
holders can use the following modalities to transfer money from their
account;
1. Using Check Transfer: Account holders can transfer money
to their customers account without the presence of the
payee.
2. Account to Account Transfers : individual customers can
transfer money using the format designed for the purpose
after proper identification and verification is completed
(new format designed for the purpose refer form
CBECATS103)
.
COLLECTION.
3. Letter of Payment Instruction:
Corporate Customers can transfer money using letter of
payment instruction to effect payment through bankers
check/fund transfer/local money transfer.
However, the transfer initiated through payment letter of
instruction should only be allowed for the following purpose of
payment stated hereunder;
1. To any government/public enterprise account ;
2. To their own, subsidiary/branch or company accounts;
3. To employee salary accounts ;
4. To place standing instruction (when the account holder place
the instruction in person)
5. Irrespective of the purpose of payment stated from i-iv, the
branch manager can authorize letter of
.
HANDLING LETTER OF
DELEGATION
Receives letter of delegation, verifies the signature and confirms the ge

COLLECTION
Security question and answer
Account (if it is to be debited from customers
account)
Signature of the remitter
He/she will read the details in order to be confirmed by
the remitter.
Then after Collecting cash the data needs to correctly
inserted in the system with the necessary particulars .
In case of the transfer request is from account the
performer will debit customer account after verifying the
account holder signature against the specimen signature
COLLECTION.
If the amount of money to be debited is within
her/his payment-authorization limit, debits the
customers account
Dual Authorization shall be requested from the
concerned CSO Checker/CSM if the amount is above
his authorization limit.
Once the CSO-maker received the deal slip from the
respective checker/CSM in a secured manner
he/she will hand over to the customer.
COLLECTION.
The Hands over the deal slip (customer advice) to
the remitter should be by keeping its
confidentiality;
The customer has to be informed by the respective
customer service officer maker to tell the security
number, test question and answer to the
beneficiary.

DAY-5: Afternoon
Coffee/ Tea Break
CBE-CATS TRAINING
COLLECTION.
Collection of Cash for Certified Payment
Order (CPO) or Demand Draft:
The following tasks will be held by the CSOs
Receiving the money transfer application form from the

customer,
Checking the particulars therein including the stamp for
corporate customers (even if for CPO preparation by cash) and
Incorporate the details into the system;

COLLECTION.
Receiving cash/debit from the customers
account, including the commission,
Forward to the Checker the letter of application,
together with the Draft or CPO
Prints the draft / CPO after confirming that the
cash has been received or the appropriate
account has been debited

COLLECTION.
Receive the CPO/draft from the Checker,
Co-signs on the prepared CPO/draft,
Makes the remitter sign on the back of the

application and gives the instrument to the
customer.

COLLECTION.
Collection of Cash in Birr for Foreign Money
Transfer
Foreign money transfer to abroad is allowed for:
Education;
Correspondence fee;
Seminar;
Training;
Symposium;
Workshop;
Conference;
Membership fee;
Medical fee and
Others in line with the pertinent directive of the NBE.
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.
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.

COLLECTION.
Sales of Foreign cash currency
Main activities performed in branches with Forex permit.
Receiving travel documents (passport and air ticket) and
authenticating the letter of application
Collecting the local currency equivalent in cash or
debiting from the customers account
Paying the customer with foreign currency notes
Writing the amount sold and the air ticket number on the
pass port and put the bank stamp

COLLECTION.
Collection of Negotiable Instruments for
Deposit
When customers present checks or CPOs given to them
by local other bank customers, we facilitate payment
through clearance system. link slide\CK DEPOSIT.pptx
CBE and other local banks facilitate their customers
collection &payment transactions through their respective
payment and settlement accounts maintained at NBE.
CBE keep mirror/replica/ account to its payment and
settlement account at NBE for proper recording and control.
COLLECTION.
A check drawn on CBE Branches
The following tasks shall be performed:-
Collects the check from the depositor (no need to
fill cheque deposit slip);
Checks the proper presentation, authenticity and
completeness of the checkthat is:
The date on which the check was issued
The name of the beneficiary thereof
Its endorsement
.
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

COLLECTION.
Post on the system by specifying the check type,
check number on the menu and
Print the deal slip (credit advise) and hands over
to the customer;
Forwards the posted check to the Branch
Controller after balancing them

COLLECTION.
Cheque Clearing System
Cheque clearing is the process of moving a
cheque from the bank in which it was deposited to
the bank from which it was drawn, and the
movement of the money in the opposite direction.
This process is called the clearing cycle and
normally results in a credit to the account at the
bank of deposit, and an equivalent debit to the
account at the bank on which it was drawn.
CHEQUE CLEARING SYSTEM
There are two common cheque clearing
approaches
1. Document based approach
The presenting bank collect the cheque and send the
physical cheque to drawee to through the clearing bank/
institution
Paper to follow more advanced type document based
approach ,which incorporating of sending the image of the
cheque and data through electronic media in addition to
exchange the physical cheques. ( Current approach applied by
Ethiopian Banks)
CHEQUE CLEARING.
2. Cheque Truncation
It is a settlement of clearing transactions on the
basis of images and electronic data without the
physical movement of the instruments.
It is also the process of stopping the movement of
cheques from the presenting bank to the issuing
bank;

CHEQUE CLEARING.
Cheque Truncation System (CTS)
CTS allows Banks to truncate cheques at the point of
capture by providing the capabilities of presenting

cheques to the paying bank electronically and process
return cheque electronically.
The presenting bank is responsible for ensuring the
genuineness of the cheque and retain the physical

cheque for the period specified by law for future
reference.
CHEQUE CLEARING.
The issuing banks have the right to request the
presenting bank and access the physical cheque
retained at the presenting bank(To be implemented
in Ethiopia Banking Environment in near future).

PAYMENT AND
SETTLEMENT
Payme Paymen Payme

nt and t and nt and
Settle Settlem Settle
ment ent ment
CBE AIB DBE
National Bank of Ethiopia virtual Environment

SYSTEM GENERIC
PROCESS FLOW

DAY-5
Afternoon
End of Day 5
CBE-CATS TRAINING
DAY-6
MORNING
CBE-CATS TRAINING
CHEQUE CLEARING
SYSTEM
Discuss the Benefit of

Cheque Truncations
system from
customer point of
view ?

CHEQUE CLEARING
SYSTEM
Quicker clearance, shorter clearing cycle and fast
credit of
the amount to customer account;
Cheque clearing which is restricted to banks
operating within
Addis Ababa city will be expanded to cover all
over the
country;
Eliminates/avoids the fear of loss of cheques in
transit and
chances of cheques
4/23/17
being lost due to320mishandling
CBE-CATS TRAINING
CHEQUE CLEARING
SYSTEM
Ethiopian To improve the
Banks are efficiency in
implementing cheque
cheques clearing
standardization processes
initiative ;
To strengthen
the
management
of payment
system risk in
the country
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
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;
The same is true if Amount in words cannot be written

in one line;
Signature must be placed above the line i.e. should
not cross the
MICR Code line
Do not mark anything on the MICR Code line band.
Link/MICR
4/23/17
Cheque CBE-CATS TRAINING 324
MAJOR CHANGE.
Watermark:
Each cheque has at least one Watermark when we
see over the light

MAJOR CHANGES
Precautions required for Ethiopian
Cheques
Alteration/correction on the cheque is not allowed;
Folding the cheque is not allowed;
No mark, staple, stamp, etc. on the MICR Code
line;

CHANGES ON CHEQUE
PROCESSING
Paper to Follow (P2F) to CTS (from
Manual to Automated system):
Cheque clearing will be made on the scanned
image of the
cheque;
Presenting Bank will store the Physical
Cheques for the
period specified by law in stead of sending
the physical
cheque;
DAY-6
MORNING
Coffee/ Tea Break
CBE-CATS TRAINING
Collectionof
Negotiable
Instruments
fromother
bank
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
Branch forward the return

Other banks ATS return the cheque to customer after
Cks return/reject the CPO and check to collecting the deposit
return CPO and check the branch by receipt from the customer
ed specifying the deducting it from
OBC ticket /claim (Customer signature may
reasons
be required)
Other bank
ATS Debit P&S
debit
customer or Respective mirror account Branch Debit H.O account
its CPO bank P&S and Credit and credit customer
account will be respective account
Account debited with
branch account
credit of CBE
P&S
CKS
accepte
d

CHEQUE TRUNCATION
SYSTEM
Branch receive
Branch Scan the checks Drawee Bank check
from
and Send the image to the image and
customer ,other
drawee Bank through appropriate action
bank Cheques
Clearing bank Pay or reject the
transaction
If accepted or not P&S acc.of Drawee dr.

rejected by the and P&S of presenting
specified clearing bank CR.
time ,C/A credited
If rejected ,the
check returned for
the customer

COLLECTION OF
NEGOTIABLE
According to NBE instruction the whole process for
handling
cheques and CPO above the amount of
200,000.00 should not
take more than six working hours.
Hence branches are advised to follow-up the status
of the respective customer account.
Any delay in this regard should be sort out by
communicating
respective other
4/23/17 bank.
FOREIGN CHECKS
There are two mechanisms namely:
Outward Bills Purchased (OBP)
Outward Bills for Collection (OBC)

OUTWARD BILLS
PURCHASED (OBP)
Receives checks issued by correspondent banks or
money transfer and exchange companies that have
accounts with the CBE and other foreign bank
checks depending on the regularity of the check, so
long as the beneficiaries can produce customers ID
cards;
Checks the name of the beneficiary/payee, the
period of the
checks validity (five months from the date on
which it was issued), the issuing bank and the bank
OUTWARD BILLS
Refers to the list of the stop-payment orders; if
the check presented to branches use online access
to check for any stop payment order if not, it shall
be referred to foreign transfer and NRNT account
If the deposit is made to the account of an

organization, a proper official stamp and an
authorized signature is necessary, and the
signature needs to be authenticated and
endorsed;

OUTWARD BILLS
Credits the amount of money on the check to the
customers account, pays cash if it is within her/his
payment-authorization limit, or sends the referral to
the Customer Services Officer-checker/Customer
Service Manager and makes the necessary entries to
reflect the transaction and gives the copy of the
deposit slip to the customer;

OUTWARD BILLS
Forwards the checktogether with a covering
letter and the exchange control copy to the Senior
Customer Services Officer-accounts for further
checking and dispatching thereof to the Foreign
Transfer NRNT

OUTWARD BILLS FOR COLLECTION (OBC)
Checks specified under OBC are not purchased at the banks counter.
Instead, they are accepted on a collection basis under OBC-foreign.
Payments for the presenter will be effected only after confirmation is
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
on the voucher marking it Accepted for collection and affixing thereto

a CSO stamp

OUTWARS BILLS ...
Makes the customer endorse the check by having
her or him affix thereto her/his signature
Passes the check to the CSO Maker at the back
office, together with the deposit voucher, for the
preparation of the OBC ticket-foreign and for affixing
thereto the endorsing signature and the crossing
stamp, etc.
Signs on the OBC ticket and forwards it to the Senior
Customer Services Officer for co-signing.
DAY-6
Lunch
CBE-CATS TRAINING
CHAPTER VI
PAYMENT

CHAPTER OBJECTIVES
At the end of the chapter, the participants

will be able
Identify to:types of payment instruments;
different
Understand the process and precaution when payment
effected from Saving or Current account and Local Money
Transfer.
Differentiate the different money transfer agents working
with the bank and procedure in effecting payment.
Understand the feature of CPO and handling of lost
instruments

CONTENT OF THE CHAPTER
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

PAYMENT INSTRUMENTS
Payment can be effected by means

of:
Cheques
Cash payment order(CPO)
Demand Draft
Withdrawal voucher (for saving account)
Fund transfer
Money Transfer.

PAYMENT OF LOCAL CHECKS
FROM CURRENT ACCOUNT
Duties and Responsibilities while paying
local checks
CSO-
MAKE
R

PAYMENT OF LOCAL
CHECKS
Duties and Responsibilities
CSO-
Checke
r

PAYMENT OF LOCAL
CHECKS
Duties and Responsibilities
Branch
Controll
er

CBES CHECKS/CPOS
COLLECTED BY OTHER BANKS
(INCOMING CLEARANCE)
When CBE checks/CPOs deposited in other banks, the other
bank sends the checks/CPOs on collection base for
clearance in scanned copy on the EATS and the original
check or CPO.
CBE branches and ATS sub process should handle the
process as indicated in the collection part.
CBE branches should return checks for any
irregularity/amount in figures and words differ, insufficient
balance, alteration not backed by drawer signature/ within
the specified time.

CBES CHECKS.
Duties and Responsibilities of the CSOs/ J.
Officers
The branch CSO Receives the checks/CPO dispatched
from ATS team after checking against the summary
report;
Checks the genuineness and completeness of the
checkthat is, makes sure that the date on which it
was written and the amount of money in both words
and figures appear on it and that the check has been
signed by the account holder and endorsed;
CBES CHECKS.
The CSO checker/ CSM approves the returned

checks on the system up on the limit;
The CSO Checker Prepares a summary report for

the returned checks and dispatch to ATS

OUTGOING MT103
MT103 SWIFT messages are used to effect
payments from one Bank customer to another
Bank customer.
SWIFT- is an acronym for Society Worldwide
Inter-Bank Financial Telecommunication.
These message types are by their nature include
only customer to customer transfers. Currently, in
addition to the above mentioned type of
payments, Commercial Bank of Ethiopia (CBE)
effects
4/23/17
paymentsCBE-CATS
presented
TRAINING
through special
351
PAYMENT THROUGH SPECIAL
CLEARANCE
Duties and responsibilities of the CSO-
maker
Receive the CBE check with MT-103 attachment
designed for Special check clearance greater than
birr 200,000.00.
Verify the other banks signature signed and
authenticate the check presented and post the
check in Input MT103 Outward Remittances -
Cheques menu.
SPECIAL CLEARANCE ...
Duties
Make sure about the inputted transaction details,
she/he may hold it in order to check for the 2nd
time then commit.
Forward the documents after writing posted on
the face of the check and sing on it, Sign on
attachment by writing the time received.
Forward the document to the checker for co-
signing and/or authorization
FCY CHECK (NRT, NRNT)
Duties and Responsibilities of the CSO-
Maker
Accepts the check and the ID card from the payee/the
beneficiary, if the customer is other than the account
holder;
Checks the genuineness and completeness of the;
Identifies the customer on the back of the check, if the

bearer is other than the account holder; otherwise,
marks Account holder on the back of the check;
FCY CHECKS.
Duties
Authenticates the signature on the check and
debits the appropriate customers account;
Sends the referral to the Customer Services
Officer-Checker/CSM for check values above
her/his payment-authorization limit and pays the
customer in cash;

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.

DAY-6
Afternoon
Coffee/ Tea Break
CBE-CATS TRAINING
CONNECTING 9 DOTES
You may have seen this puzzle where you have

to connect 9 dots with 4 straight lines, without
lifting the pen from the paper or going back on
yourself it's a traditional 'thinking outside the
box'
4/23/17
puzzle. CBE-CATS TRAINING 358
CONNECTING

WITHDRAWAL FROM SAVINGS ACCOUNTS
Duties and Responsibilities of the CSO-Maker:-

Receiving the passbook and withdrawal voucher from the customer and
checks that the withdrawal voucher is properly filled and signed; that is, the
date on which it was withdrawn, the name of the account holder, the amount
of money in both words and figures, the account number and the signature
of the account holder appear on it. link slide\withdrawal form.pptx
Making the transaction in the presence of two witnesses, if the

customer is blind, one of whom should be the Customer Services
Officer/Maker or the Customer Services Officer/Checker who is not
processing the payment, and the other should be the customer
service manager/Branch Manager

WITHDRAWALS FROM
SAVING.
Duties
If the spacemen for the account is received by thumb
print, she/he must sign by thumb print on the
withdrawal voucher in the presence of the Customer
Services Officer/Maker who must attest the thumb print
by a rubber stamp marked Signed before me and
initial on it.
If there is no rubber stamp marked Signed before
me, the Customer Services Officer/Maker should put
her/his name and initials next to the thump print
WITHDRAWALS FROM
SAVING
Duties
Counterchecks the name and account number written on the
voucher against the passbook and the system;
Identifies the customer against the scanned photo and
authenticates the signature of the customer on the voucher
against the scanned signature;
Posts the transaction and pays the specified amount of money
on the withdrawal voucher to the account holder by recording
the denominations into the system, depending on the
customers preference after the transaction authorized.
WIHDRAWALS FROM
SAVING
Duties
If the amount of money to be paid is above
her/his payment-authorization limit, forwards the
documents for referral to the concerned Customer
Services Officer-Checker/Customer Service
Manager
Affixes the stamp of the Customer Services
Officer on the face of the withdrawal voucher and
initials on both the voucher and the passbook;
WITHDRAWALS FROM
SAVING
Duties
Delivers the passbook to the customer, together
with the requested cash;
Passes the voucher to the Branch Controller,
immediately after the transaction has been
completed.
The CSO Checker/CSM Checks the correctness
and genuineness of the transaction and
responds to the referral based on the payment-
authorization limit given to her or him.
PAYMENTT AGAINST LOCAL
MONEY TRANSFER
Payment between on-line branches
LMTS payment originated by any branch or through
E- banking channels shall be paid to the
beneficiary at any networked branch even with in the
same city.

PAYMENTT AGAINST LOCAL
Duties and Responsibilities of CSO-
maker
The CSO Maker Receives the filled out LMTS payment form
and Beneficiarys ID from the customer;
link slide\LMTS Payment Request form.docx
Log in to the system using the Security Number and cross
check the beneficiaries name, Remitter name, Test
question and answer (if any), and amount against the
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;

PAYMENT AGAINST LOCAL
Duties
If the customer lost and totally forgets the security
number, advise to get the number from the
remitter; otherwise, no payment shall be effected;
In case the remitter also lost and forgot the

security number, the CSO-Maker still tell the
customer, payment could not be immediately
effected until the case is investigated by the CATS-
CPC and ensure no payment is made to third party.

DAY-6
Afternoon
End of Day 6
CBE-CATS TRAINING
DAY-7
MORNING
CBE-CATS TRAINING
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
(use the standard format designed for

specific MTO or use
FORM CBECATS112)
FOREIGN MONEY
TRANSFER
Money Transfer agents(MTOs) currently
working with CBE
Agent name Sending g Corridor Tran
Secret No
Western Union World wide 10
Express World wide 16

Money Gram World wide 8
Bole Atlantic World wide 9-12

10
Dehabshill World wide
RIA
Lari Exchange

MTOs..
Zenj Exchange Middle East 8 10012345
(Turbo Cash)
T and Y Australia 9 TD124578963
ARY FOX (Speed Middle East 9 ARY789456123

Remit)
Dawit MTO USA 8 HD12345678
Asgori Australia Europe 8 ASG12345678
PACO Service Switzerland 6 PS002365

MTOs..
Agent name Sendin g Corridor Tran
Secr
et No
Trans Fast USA Middle East 13 33TF/AM001122334
Tawakal Europe 7 1234567

Golden Money USA & Middle East 7 CBE0011223
Zenj/turbo cash Middle east/bahren 16 or 8 numeric

Blue Nile London 7 1234567
Kaah Express Europe & North 7 ABC1234567

America
World Remit England Europe 8 02123456

MTOs..
The Five top performing MTOs in their order of
Remittance inflow are:
1. Western Union
2. Xpress
3. Bole Atlantic
4. Money Gram
5. Dhabshil

MTOs..
Review Of 5 Top performing MTOS

CPO PAYMNET
CPO will be paid to payee after properly examining
the authenticity and the proper presentation of the
instrument.
The payee should endorse at the back of the CPO
before payment is made. In addition, we should
properly identify the customer and retain the photo
copy of the customer ID card.
Expired CPO should be authorized by respective
branch or Customer service manager before
PAYMENT OF A LOST CPO
AND DEMAND DRAFT
Stop payment should be placed on the system
If the beneficiary and the remitter of the lost

instrument are two different persons or organizations,
the one who requested for the refund of the proceeds
of the lost instrument shall present the other partys
consent and enclose any other additional supporting
documents as and when necessary
It should be approved by authorized organs as
stipulated in CATS procedure
DAY-7
MORNING
Coffee/ Tea Break
CBE-CATS TRAINING
COMMERCIAL BANK OF
ETHIOPIA
CHAPTER 8
ACCOUNT CLOSURE
AND
OTHER ISSUES
CBE-CATS TRAINING
SPECIFIC OBJECTIVES
At the end of this topics, the trainees

will able to understand and
Explain the reason of accounts closing
Define the account closing process

DISCUSSION POINT:
Why the customer close an

account?

ACCOUNT CLOSING
PROCEDURE
Before closing an account, the Branch
Manager/CSM must interview the customer.
If customer intend to close an account due to

dissatisfaction or misunderstanding, immediate
remedial action or corrective measure should be
taken by Branch management.
CBE-CATS TRAINING
4/23/17 383
REASON TO CLOSE AN
ACCOUNT
Customer request
Loss of pass book/check
Court order
Death , bankruptcy and insanity of an account holder
By service charge for inactive current account
Due to mal operation only for current account
Not maintain Minimum balance on saving account

opened with zero balance within one month.

REASON TO CLOSE AN
ACCOUNT:

PROCEDURE WE
FOLLOW IN CLOSING
AN ACCOUNT
Accept customer request;
Collect Pass book or unused Check;
If it is lost of pass book collect declaration form and

evidence;
Check there is no wrong debit or credit;
Collect service charge if any as per term and tariff of bank;
Initiate the closing process effect payment or transfer

balance and forward the passbook/unused check to CSM
for proper authorization and to senior branch controller for
proper documentations;
ACCOUNT CLOSING WORK
FLOW

DAY-7
Lunch
CBE-CATS TRAINING
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;
The account status changed from active to inactive by

the system regardless of their balance;
To reactivate inactive account their must be three debit

transaction, but Branch manager/CSM can change the
status with less than three debit transaction;

CONT..
Any transaction in related to inactive account
should be referred to CSM regardless of the
amount;
Inactive current account with a balance of less

than birr 100 are subject to service charge every
six month as per the bank term and tariff;

STOCK AND NEGOTIABLE
INSTRUMENT HANDLING
Any Check book ,Pass book, CPO stock, bond stock
are handle by CSM.
Up on customer request CSM deliver Check book to
SCSO- Accounts to prepare and issue the check in the
name of customer.
After check is prepared SCSO-Accounts delver to

customer by signing on check book deliver register
and insert the check number to the system.
CSM deliver pass book to front office checker after

checking proper utilization of previous issued
passbook and the checker should be signed on the
register book.
STANDING INSTRUCTION
It is fundamental principle of banking industry that

all customers instruction must be given in written
and signed or authorized by the customer who give
the instruction.
Once standing instruction has been received from

customer it will remain valid for un indefinite period
of time unless customer cancel the instruction.
Customer has to pay service charge set for each

transaction.

BANK STATEMENT
A bank statement is a regular record issued by
the bank showing the credit and debit entries the
particulars and the remaining balance in a
customer account.
Branches usually issued monthly bank statement

to current account holder for both active and
inactive account.
Bank statement issued by SCSO-Accounts.

BLOCKED ACCOUNT AND
BLOCKED AMOUNT
Blocked account :- an account subject to any
transaction restricted either by account holder or
third party (like court, ERCA, Anti corruption office)
Blocked amount:- an amount either in cash or
from customer account subject to Withdrawal
restriction by account holder or third party (like
court, ERCA, Anti corruption office)
To waive amount or an account already blocked
either customer or third party logged its consent
by writing and authenticate the release
document;

CHANGE OF SIGNATURE
An account holder may request for changing signature
for either of the following two reason:
A). Based on the customer request when there is a

difference in
the customer signatures given to the bank in pervious
time or
changes in authorize signatories.
B). When an illiterate account holder become literate.

Frequent change of signature shall be discouraged;
Change of signature is subjected to Service charged as
per terms and tariffs;

DAY- 7:
Afternoon
Coffee/ Tea Break
CBE-CATS TRAINING
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.
When Bank made an error in LMTS the sender/remitter

is possible to ask amendment or cancelation in
originating branch but the bank waive charge.
Link slide/CBECATS 109

LOST SECURITY NUMBER IN
LMTS
When the remitter lost the LMTS Security number
and reports the case to the Branch for return or
payment to the beneficiary, such request shall
only be presented to the originating branch.
The Customer will pay additional service charge

to get security number. Link slide/CBECATS105

RUBBER STAMP HANDLING
A wide variety of rubber stamps are being used in

the Bank. The types of rubber stamps used must
be recorded in the stamps register book of the
Bank.
As stamps are sensitive by nature, the staffs who
keep custody of rubber stamps should bear in
mind that they must be kept under lockable
drawer or box.
When the staff change place of assignment they
must handover all the rubber stamp under their
custody to the responsible CSM/Branch manager.

BOND
General definition of bond:-
Bond is Like promissory note or treasury bill, is a
debt instrument issued for a period of more than
one year with purpose of raising capital by
borrowing.
Saving bond is a well secured bond and targets

low income section of population for its sale with
the intention of enabling the bondholders earn
interest income, and at CBE-CATS
4/23/17
the same TRAINING
time400
enables the
THE GRAND ETHIOPIAN
RENAISSANCE DAM BOND
The Government of the FDRE has decided to
mobilize resources for the strengthening of
Development of Ethiopia and increase the saving
culture of the general public by issuing Saving
Bond named The Grand Ethiopian
Renaissance Dam Bond to rural & urban
communities, micro-enterprises cooperatives, and
other sections of the general public.

BOND
The Main features and selling conditions of the Grand
Ethiopian Renaissance Dam Bond are the following:-
Name/Type of bond: The Grand Ethiopian
Renaissance Dam Bond prepared in the form of interest
bearing and non- interest bearing coupon;
Bond Owner: The Government of the FDRE [Ministry

of Finance and Economic Development (MOFED)];
Bond issuer/supplier: Development Bank of

Ethiopia (DBE);

AGENTS OF ETHIOPIAN
RENAISSANCE DAM BOND
In Ethiopia: - Commercial Bank of Ethiopia
and other institutions are designated by the DBE.
Outside Ethiopia:- Ethiopian embassies and
councilor offices and other institutions to

bedesignated by the Development Bank of
Ethiopia.

BOND ...
Maturity is 1 - 5 years and above 5 years;
Interest Rate: The interest rate of the GERD
Bonds with maturity period of 1-5 years shall be
5.5% while that of the Bonds maturing in more
than 5 years shall be 6% per annum.
However, if Bond buyers request redemption in 5
years or before 5 years for Bonds maturing in more
than 5 years, interest shall be computed at 5.5%
per annum.
There are also non-interest bearing Bond Coupons
ready for sale.

BOND ...
Interest payments: Interest shall be
calculated starting from the issue date and paid
Semi-annually on June 30 and December 31.
Redemption Procedure: A bondholder can

redeem the principal amount and collect the
interest earned on the bond from any branch of the
bond Selling Bank (Unit).
Tax: Interests earned on the Grand Ethiopian

Renaissance Dam Bond is tax-free.

DISCUSSION
QUESTIONS:
What is inactive account and how we reactivate it?
How do we handle different stock in the branch?
What is the difference between blocked account and blocked

amount?
Discuss the reason why the customer change her/his signature ?
How do you handle if the customer lodge her/his request

frequently for signature change ?
Mr. X has appear at your branch counter to report for lost of
LMTS secret number please explain the procedure we follow to
serve customer request?

CATS PROCESS WORK
FLOW MAP
CUSTOM
CUSTOM Enquiry at ER
ER counter SERVICE
Account OFFICER
opening, WITHIN THE
-MAKER
SELF DISCRETIO
SERVICE Account
operation, NERY
ALTERNATI
closing, LMTS LIMIT/OR PROCES
VE
& etc NOT NEED S EN
CHANNELS
CO- D
(ATM,POS,I YES
SIGNNING
B, MB)
OR
PROCESSIN
Passes NO
DocumentsCUSTOMER
G
BRANCH DOCUMENTS/TICK SERVICE
CONTROLL ETS OFFICER-
ER CHECKER/CS
M document
4/23/17 CBE-CATS TRAINING

CATS s 407
CPC
DAY-7
Afternoon
End of Day 7
CBE-CATS TRAINING
DAY-8
MORNING
CBE-CATS TRAINING
DAY-8 Morning
Coffee/ Tea Break
CBE-CATS TRAINING
DAY-8 Morning
Post Assessment!!

DAY-8
Lunch
CBE-CATS TRAINING
DAY-8
Afternoon
Overall Discussion on topics

covered so far!
CBE-CATS TRAINING
DAY- 8
Afternoon
Overall Discussion on
topics
covered so far!
CBE-CATS TRAINING
DAY-8
Afternoon
THANK YOU!!
CBE-CATS TRAINING
THE END!!

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COMMERCIAL BANK OF

4/23/17 CBE-CATS TRAINING 3

Absenteeism is not allowed

Switch-off your Mobile phones

Share You Practical Experience, if any.

Respect Others view

Avoid interruption and side talks

Any Other (from the participants)

4/23/17 CBE-CATS TRAINING 4

TEA/ COFFEE BREAK

9 CBE-CATS TRAINING 4/23/17

Bank of Abyssinia was legally replaced by Bank of

In 1941 another foreign bank, Barclays Bank, came to

As per proclamation No.207/1955 of October 1963,

The first privately owned bank, Addis Ababa Bank

Consequently Addis Bank S.C and Commercial

4/23/17 CBE-CATS TRAINING 15

Accepting saving, demand and time deposits;

4/23/17 CBE-CATS TRAINING 16

Shall be written in Verdana font type in English and

4/23/17 CBE, Brand 17

Logo of THE COMMERCIAL BANK OF ETHIOPIA.

The coin expresses that the Bank is a financial intermediary;

4/23/17 CBE, Brand 18

The Banks name in Amharic around the edge; and

4/23/17 CBE, Brand 19

GOLDEN indicates the Banks robust wealth, high

service quality, reliability, premium service or clarity of

vision, mission, values and strategy;

4/23/17 CBE, Brand 20

pioneer in premium customer service delivery, and

that it is the successor of the first bank;

PURPLE shall be applied with other colors for

advertisement and decoration to attract and is used

as flag color, paper head and becomes background

THE CORPORATE MOTTO OF CBE shall read

corporate flag of CBE flies at the Head office, branches

Number of POS terminal = 6,269;

Number of VISA Card holder =1.4 million;

Mobile Banking users = 431,677;

Internet user are 13,730.

4/23/17 CBE-CATS TRAINING 25

4/23/17 CBE-CATS TRAINING 28

4/23/17 CBE-CATS TRAINING 29

30 CBE-CATS TRAINING 4/23/17

Discuss what makes CBE World

4/23/17 CBE-CATS TRAINING 32

enhanced financial intermediation globally

national development priorities, by deploying

skilled and disciplined employees as well as

technology. we strongly believe that winning

4/23/17 CBE-CATS TRAINING 35

4/23/17 CBE-CATS TRAINING 36

4/23/17 CBE-CATS TRAINING 37

4/23/17 CBE-CATS TRAINING 38

CBE Response: Implement Corporate Strategy,

CBE Response: Conducive working environment,

4/23/17 CBE-CATS TRAINING 40

42 CBE-CATS TRAINING 4/23/17

5. Teamwork and Collaboration

We support to one another and working co-operatively.

depends on our ability to maintain and build up the

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