Thesis Open Access
AHMED MUKTAR
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<subfield code="a">Challenges, Prospects, Shariah, Interest Free Banking</subfield>
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<subfield code="a">CHALLENGES AND PROSPECTS OF INTEREST FREE BANKING SERVICE: CASE OF COMMERCIAL BANK OF ETHIOPIA IN GOBA TOWN</subfield>
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<subfield code="a"><p>The study aims to investigate the challenges and prospects of interest free banking service at the Commercial Bank of Ethiopia in Goba Town. To reach its goal, the study used both qualitative and quantitative research methods. A total of 147 sample respondents were taken through probability and non-probability sampling. Of the total sample interest free banking customers and staffs of the bank constitutes 99 and 48 respectively. Data for study was gathered from both primary and secondary sources. Primary data were collected via questionnaire and interview. The data was evaluated using descriptive statistics of frequency and percentage. Based on the analysis of the obtained data, this research has found out the prospect of IFB are the existence of Potential customers, high demand in the market that can create favorable condition for the development of IFB on the other side, the challenges to deliver IFB services as: lack of customer awareness about IFB products and services, inadequate training, lack of skilled man power, lack of Shariah compliance. On the other hand, less customers trust and confidence within the bank are the main challenges that customers face to utilize the products. Accordingly, the following recommendations were forwarded by the researcher based on the results of the findings in conjunction with literature review reflections: aggressively raising customers awareness about IFB products and services, provide adequate training to employees to build the capacity of the manpower, avoid mixing of IFB services from conventional ones and comply with Shariah principles and procedure.4<br>
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