Challenges and Opportunities of Islamic Banking: The Case of Commercial Bank of Ethiopia – Betel Branch

Abstract

To achieve objectives, this study was used descriptive research design with regard to the challenges and prospect of interest free banking in CBE at Betel Branch. The population of this study was employees of interest free banking in CBE at Betel Branch. It also consisted of 16 employees and uses the whole population. I used primary source of data to achieve the objectives. The major finding of this study was that most employees aware about IFB in CBE at Betel Branch but still few employees lack awareness. Mostly Commercial Bank of Ethiopia had enough qualified scholars in Interest Free Banking to ensure that Interest free banking services are fully complies with Sharia Law. Therefore, I concluded that few IFB employees were not fully understand the interest free banking systems and products in CBE at Betel Branch. And lack of understanding about concepts and practice of IFB of CBE at Betel branch was challenges to ensure that Interest free banking services are fully comply with Sharia Law. Finally, I recommended for CBE interest free banking to increases the awareness of employees regarding to IFB at Betel Branch as well as a whole country and Commercial Bank of Ethiopia should hired or employed qualified scholars in Interest Free Banking in CBE at Betel branch and/or other branches to overcome the challenges of ensuring that interest free banking services fully comply with Sharia Law.