DETERMINANTS OF INTEREST FREE BANKING SERVICE THE CASE OF COMMERCIAL BANK OF ETHIOPIA, HOSSANA DISTRICT, ETHIOPIA

Abstract

This study examines determinants of Interest free banking services in Ethiopia with particular reference to the commercial bank of Ethiopia. The study has employed and the cross sectional data. The study has used primary data which are quantitative and qualitative in nature and have been collected through structured and semi structured questionnaire and interview. A total of 399 sample respondents were taken through multistage sampling. The data was analyzed using descriptive statistics of mean, frequency and percentage using STATA version 13 software. From the study result, training in this study Disagree (33%), neutral (18.63%) and agree (49 %). Almost half of the respondents were agreeing on having training. Training has positive and statistically significant impact on interest free banking. Giving different trainings sharia rule, financial flow, financial transaction and skills are very important. The customers were not aware about the Interest Free Banking services and products, but 82.5 % of the respondents say there is lack of advertising by media or banking sectors. In this study male customers have higher probability to participate IFB than females. From the view of customers in the service of CBE there is little satisfaction. The customers do not get the service on time and wanted amount of cash money. The bank management and staffs should give different services, implant different technology and time saver mechanism