BANK PRODUCTS, SERVICES,

PROCEDURES AND DIRECTIVES

 Outline
This training module encompasses:
 Part I: Bank Products operation and procedure
 Part II: Bank services operation and procedure
 Part III: related issues on checking and saving
accounts
 PART IV: E-Banking, Credit, IFB and IBD
Product and Services
 Part V: resource mobilization and professional
Ethics
 Introduction
 Wegagen Bank has currently adjusted its strategies
and turned its focus on mobilizing resources and
expanding its resource base to reach the targets set by
the bank.
 To achieve these targets it is crucial to have
enthusiastic, skilled and loyal frontline staff
members.
 This training package is designed to help frontline
staff members to be prepared for their specific roles
and responsibilities, professionally selling the bank
products and services.
 Objectives
At the end of the training course, staff members
are expected to have a clear picture of:
 Domestic banking products and services.
 Wegagen Banks Culture.
 Branch operation policies and procedures.
 Basic communication and customer
relationship skills.
 Basic IBD, Credit, IFB and E- Banking products
and services
 Scope
• This training package focuses on:
 Domestic banking Products and services
and other related issues
 Basic concepts of IBD, credit, IFB AND e-
Banking services.
 Recourse mobilization and professional
ethics.
 PART I: BANK PRODUCTS
OPERATION AND PROCEDURE
General types of customers and accounts

Types of
Customer

Individual Corporate Bank/Financial

Customers Customers Institution

Types of Accounts

Saving accounts Checking Accounts Fixed Time Deposit

 1. Local currency saving accounts
1.1. Normal saving Accounts:
Features & requirements
 Minimum interest rate set by NBE.
 Can be opened with or without passbook.
 Can be linked with various e- banking products.
 Renewed Kebele ID card, Passport, Driving license, School
Id card or personal TIN.
 One passport size photo and customer signature.
 Minimum balance of birr 25 or zero balance for one month.
Account opening & operating procedures
 KYC and CDD should be checked.
 NBE directives are also applicable.
1. Local currency saving accounts
1.2. Special Saving Account:
Features & requirements
 Opened by individual who is legally travelling
abroad for work temporarily through the agencies.
 The fund will be channeled in hard currency and
deposited in local currency.
 The interest rate is highly attractive (14%).
 All documents required to open normal saving
account is applicable to open special saving
account
1. Local currency saving accounts
1.3. Goh/Child Trust Account:

Features & Requirements

 Opened by parents/ guardians on behalf of their children until they reach 18 years.
 Uniquely prepared passbook shall be issued.
 Normal saving interest rate Plus 0.5 per annum.
 Renewed every five years.
 A bonus of Birr 500.00 for a deposit amount up to Birr 10,000.00 and Birr 1,000.00
for deposit amount above Birr 10,000.00 at maturity date.
 Interest rate increases by 0.5% every five years until the child reaches 18 years’
age.
1. Local currency saving accounts

 Birth certificate of the child is required to open the account

 Account can be opened with minimum balance of birr 100
and 100 birr shall be deposited every month (Minimum
balance shall be Birr 1200 a year).
 One photograph of the child and one of the parents
 Court appointment document (for guardians or in case of
divorce).
 In the case of death of the guardian where there is no will,
the court shall appoint a new guardian to operate the
account.
1. Local currency saving accounts
Account opening & operation procedures
 Trust Account maintenance agreement
form shall be signed.
 Interest shall be forfeited if withdrawal is
made before maturity date.
1. Local currency saving accounts
1.4. Nigat (Women) Saving A
Features & Requirements
 Special saving account targeting women with attractive
interest rate.
 ATM card and pass book uniquely prepared
 All documents required to open normal saving account
is applicable to open Nigat (Women) saving account.
Account opening & operation procedures
 Account opening & operation procedures applied for
normal saving is applicable here.
1. Local currency saving accounts
1.5. Elder/Warka saving account
Features & Requirements
 for Elders above the age of 50.
 Higher interest rate (saving+ 1%)
 The customer should submit valid Birth certificate or
renewed Kebele ID, passport, driving license etc to verify
his/her age.
Account opening & operation procedures
 Withdrawal of more than 2 times in a month will forfeit
the incremental rates.
 Procedures that apply for normal saving account apply.
1. Local currency saving accounts
1.6. “Muday” Saving Account
Features & Requirements
 targets individuals engaged in small - scale businesses.
 A “saving box” will be provided for customers.
Account opening & operation procedures
 The “saving box” and its keys should be coded and the code number
together with the customer’s name should be labeled on the box.
 Registration book should be prepared to register the “saving box”
provided to customers.
 A Contract must be signed regarding the handling of the “saving box”.
 The customer should bring the saving box to the branch to deposit the
money collected on the saving box every fifteen days or monthly basis.
 Serve last warning letter, if he/she fails to deposit in the box for three
consecutive collection periods.
 1. Local currency saving accounts
1.7. Equib/ Edir saving account
Features & Requirements
 An account targeting Equbs and Edirs.
 Higher interest rate (saving +0.5%).
 No Payment cards can be provided for this
account.
Account opening & operation procedures
 All procedures for opening of accounts for
individuals, businesses, and associations will also
apply for this account.
1. Local currency saving accounts
1.8. Admas Accounts:
Features & Requirements
 The customer shall maintain both saving and
current account simultaneously and provide
deposit as equity contribution to receive loan
from the bank
 Admas personal Account
 Admas women entrepreneur account
 Admas Small and Medium Enterprise (SME) Account
 1. Local currency saving accounts
Type of Loan Equity contribution Loan
provision

Admas personal for  Initially deposit 10% 60%

Automobile purchase  15% within the first six months
 15% in the next six months
Admas personal for the  Initially deposit 10% 70%
purchase/constriction of  10% within the first six month
residential house  10% in the next six month.
Admas women entrepreneur
 Initially deposit 20% 60%
account for Working capital
 20% over the period of 6 months or
more
1. Local currency saving accounts
Type of Loan Equity contribution Loan
provision

Admas women
 Initially deposit 10% 70%
entrepreneur account to
acquire business premises  20% should be saved over the
period of one year or more
Admas Small and Medium
 Initially deposit 20% 50%
Enterprise (SME) for
working capital loan  additional 30% should be saved
over the period of 6 months or more
Admas Small and Medium
 initially deposit 20% 60%
Enterprise (SME) For
equipment and to acquire  20% should be saved over the
business premesis
period of one year or more
1. Local currency saving accounts
1.9. Cooperative saving Account
Features & Requirements
 for cooperatives associations & other
institutions.
 Certificate of Registration and a copy
of the Articles of Association.
1. Local currency saving accounts
1.10. Accounts for minors, interdicted persons,
and bankrupt firms in liquidation
1.10.1. Accounts for minors
Features & Requirements
 Proper application of the guardian
 Court decision for the appointment of the guardian
for the minor.
 Certificate of birth
Account opening & operation procedures
 Normal saving account procedures apply.
1. Local currency saving accounts
1.10.2. Accounts for an interdicted person
Features & Requirements
When an account is to be opened in the name of an
interdicted person, the following documents should be
produced:
 The decision of the interdiction by court.
 Official appointment letter of the guardian from the court
 Valid and renewed ID. Card of the guardian and the
interdicted.
Account opening & Operation procedures
• normal saving procedures are applicable here.
1. Local currency saving accounts
1.10.3 Account for firm under liquidation
Features & Requirements
 Decision of bankruptcy and liquidation by the
court.
 Appointment of liquidator by the court
 Renewed ID Cards.
Account opening/Operation procedures
• Account opening & operation procedures
applied for normal saving is applicable
1. Local currency saving accounts
1.11. Pension Account
Features & Requirements
 A type of account wherein an employer is paying
monthly retirement sum for pension entitled employees.
Account opening/Operation procedures
 opened upon written instruction from social Security
Agency.
 No pass book shall be issued for this account
 Withdrawal can be once a month
 If the customer does not withdraw money within three
months, it will be returned to the EFDRE Private
Organization Employer agency.
1. Local currency saving accounts
1.12. Provident Fund Account
Features & Requirements
 Is an account opened to accumulate deposit for the
employee by the contribution of both employer and
employee.
Account opening/Operation procedures
 Specimen signature and photo of the Employee may
not be present.
 Payment can only be made by official letter of
employer.
 The account status should be debt freeze.
2. Local currency Checking Accounts

2.1. Normal Checking Account

Features & Requirements
 A non-interest-bearing account and opened or operated
by literate customers through checkbooks.
 The Bank may offer interest with the fulfillment of a
predesigned criteria
 Account can be linked with ATM card, Internet banking
and Mobile banking access.
 TIN, trade registration certificate, trade license,
renewed ID card, Article of association, memorandum
of associations
2. Local currency Checking Accounts

Account opening/Operation procedures

 “Addendum” form shall be signed.
 It should be ascertaining a customer is not
listed in the delinquent list .
 Carry out due diligence as required under
“KYC” and Anti Money laundry” (AML)
guideline.
 Any NBE directives shall be applicable.
2. Local currency Checking Accounts

2.2. Special Demand Deposit

Features & Requirements
 An interest-bearing demand deposit
account.
 The account is mainly opened for corporate
institutions who maintain a substantial
amount of deposit.
2. Local currency Checking Accounts

2.3. Overdraft Account

Features & Requirements
 Account holder can withdraw fund up to approved
limit in excess of own fund day to day short-term
cash flow problems.
 The customer shall bring all the necessary documents
as required to open normal current account.
Account opening/Operation procedures
 It is loan type of account which needs all credit
policies and procedures.
2. Local currency Checking Accounts
2.4. Mixed/NOW/ Account
Features & Requirements
 It is interest yielding account with privilege of cheque
issuance.
 Monthly statements are given to the account holders
without charge.
 An initial deposit of Birr 10,000.00 is required
Account opening/Operation procedures
 the procedures to open a normal checking account apply.
 Only three free withdrawals are allowed per month to
obtain interest.
 If the balance falls below Birr 10,000 the customer will
forfeit the interest benefits.
2. Local currency Checking Accounts

2.5 Linked Accounts

2.5.1 Linked Zero Balance
Features & Requirements
 Account that maintains a disbursing current account at
“zero balance” and transfer funds for payment from a
saving account.
 opened with Zero balance and the related saving
account shall be opened with an initial amount of birr
1,000,000.00.
Account opening/Operation procedures
 Interest shall not be paid for this account, if the account
balance falls below 1,000,000.00.
 2. Local currency Checking Accounts
2.5.2. School Account
• Target Customers:
 Private schools
 Technical and vocational training institutes
 Professional Training institutes and Colleges
Features & Requirements
 The customer shall maintain both saving and current account
simultaneously .
 The Bank may also sponsor major events of the school .
 The Bank will facilitate the school in the collection of school fees.
 The Bank may also provide loan facilities for the institution and
employees.
 500,000.00 and should maintain it as minimum balance at all-time
otherwise it will forfeit the interest rate for that particular month.
2. Local currency Checking Accounts

Account opening/Operation procedures

 All procedures for opening normal checking
account apply.
 Requirements for Credit procedures, shall
apply to get loan facility.
2. Local currency Checking Accounts

2.5.3. Escrow Account

Features:
 The account is intended to attract
employers and suppliers/contractors since
it is arranged to address issues of the
contracting parties in a given
contract/project.
2. Local currency Checking Accounts

2.5.3. Ethiopia Commodity Exchange Settlement

Account
Features & Requirements
 Account opened by ECX members or clients for
pay-in and pay-out in relation to Ethiopia
commodity Exchange.
 ECX pay in account shall be opened by the
authorization of the Ethiopian Commodity
Exchange Authority.
 Official letter from the ECX Authority is required
 2. Local currency Checking Accounts
Account opening/Operation procedure
Member Account Opening
 After receiving the ECX account opening facilitation letter, the bank
must open the Member’s bank account and provide ECX with the
account numbers within the following timescales:
 Pay-out via Telegraphic Transfer24 hours (under normal conditions)
 Within 48 hours if the branch network was not working
Pay-out via Telegraphic Transfer
• When receiving an electronic instruction to pay-out to a member via a
Telegraphic Transfer, the money should be received in the receiving pay-
out account according to the following schedule:
• 90% by 3.30pm on the same day as the electronic instruction was
received (if there are not external factors causing a delay, e.g. telephone,
electricity, etc.
• 100% by the next working day after the electronic instruction was
received (if there are no external factors causing a delay.
 ECX Accounts
Type of ECX use of account Legal Sloe rights Electronic Cheque
account owner to request credit books and
all debits instructions payment
cards

ECX - level account

ECX settlement
account ECX ECX ECX Not issued

Bank – level Account

To transfer funds
between ECX
ECX Correspondent settlement account
settlement bank in one bank to Correspond can be
account another ent bank ECX ECX issued
 ECX Accounts
Type of ECX account use of account Legal owner Sole rights Electronic Cheque member
to request credit books and withdra
all debits instructions payment wals
cards
Member-level Accounts
Member Pay-in (to for members trading Not
ECX) on their own account Member ECX Member Not issued Allowed
Member Pay-out (from for members trading can be Not
ECX) on their own account Member Member ECX issued Allowed
Member clearing Pay-in for clearing on behalf
(to ECX) of other members Member ECX ECX Not issued Allowed
for trading on behalf Not
Client Pay-in (to ECX) of clients Member ECX ECX Not issued Allowed
Client Pay-out (from for trading on behalf can be Not
ECX) of clients Member Member ECX issued Allowed
for limited member
Limited Member Client trading on behalf of Limited Limited can be
Pay-out (From ECX) clients: Member Member ECX issued Allowed

for processing
Member Clearing Pay- withdrawals on behalf can be
out (from ECX) of other members Member Member ECX issued Allowed
 2. Local currency Checking Accounts
2.6. Cooperative Checking Account
Features & Requirements
 Current account opened for cooperatives associations & other
institutions.
 Resolution of the general assembly appointing the Executive
Committee that operates the account;
 Submission of Certificate of Registration
 A copy of the Articles or regulation of Association /Cooperatives,
etc.
 All necessary document to opens a normal checking account are
required here.
Account opening/Operation procedures
 All directives and procedures for opening a normal checking
account apply.
2. Local currency Checking Accounts
2.7. Checking financial institution
Features & Requirements
 An a/c for financial institutions such as banks, insurance
companies and microfinance institutions.
 License from the National Bank of Ethiopia;
 Resolution of the Board of Directors, assigning the authorized
officials who operating the account;
 Those governments owned financial institutions are required to
submit documents similar to public agencies and/or enterprises.
 If the financial institution is under formation a letter of support
from regulatory body, NBE is required.
Account opening/Operation procedures
 Cash withdrawal limit doesn't apply for such types of accounts.
 3. Local Currency Fixed Time Deposit Account

Features & Requirements

 Intended for those depositors who want to
surrender the fund for a certain period of time.
 The bank pays higher interest but imposes
conditions on the amount, withdrawal and
interest payment.
 Fixed time deposit request shall be presented
in formal written application
 Minimum deposit shall be birr 100,000.00 .
3. Local Currency Fixed Time Deposit Account

Account opening/Operation procedures

 Interest rate and periods for fixed time
deposit determined per the consensus
reached between the depositor & the bank.
 Certificate of deposit shall be prepared.
 Time deposit acceptance is undertaken by
approval of resource mobilization
committee
 4. Foreign Currency saving account

Features & Requirements

 Saving account denominated in acceptable foreign currency (USD,
EUR, GBP)
 Minimum interest rate shall be LIBOR plus 4 percent.
 Minimum Account Opening Balance for this type of account is USD
50 or equivalent of Pound Sterling or Euro.
 Can use for his/her self, spouse and children education, medical and
travel expense abroad upon presentation of valid documents.
 Non -resident Ethiopian, Non-resident Ethiopian origin and
Residents of Ethiopia may also open an account
 For foreigners residing in Ethiopia Residential permit from
Immigration Office and Supporting letters.
 valid passport and/or ID card is required.
 Two or more eligible depositors may jointly open a single account.
 For those who can not be physically present to open the account,
application authenticated by the Ministry of Foreign Affairs,
 4. Foreign Currency saving account

Account opening & Operation procedures

Foreign currency saving account shall be credited by:
 transfer through banking system.
 foreign currency cash notes.
 Foreign currency transferred through international remittance
 Transfer from own non -resident foreign currency account
 Transfer or cheque drawn or endorsed in favor of Ethiopian National
by a non-resident foreign currency account holder.
• Foreign currency saving account can be debited:
 Withdrawal from the account is permitted only in Birr unless the
account holder, his/her spouse and children education, medical and
travel expense abroad up on presentation of valid documentations.
 The account holders have the right to withdraw 10% of the foreign
currency balance in debit card.
 Diaspora Account
 is a deposit account designed for Ethiopians and
foreigners of Ethiopian origin living to abroad open and
use foreign currency in their home country.
 Individuals and sister companies that have head offices in
foreign countries can open this account.
 Form of current deposit account that withdrawals can
made at any time.

• Two types of Diaspora accounts are;’

1. Diaspora Saving account

2. Diaspora Current account
 5. Foreign currency Checking accounts

5.1. Non-Resident Foreign Currency Accounts (NR-

FCY)
 NR foreign currency account is maintained and
denominated in foreign currency.
 It will be classified on the basis of the criteria and
classification set by NBE after a thorough
examination of evidences presented by the applicant.
 NR foreign currency account holder can have the
privilege to request our bank to debit his account and
instruct transfer of funds abroad without having the
necessary foreign exchange permits.
 5. Foreign currency Checking accounts

5.2 Non-Resident Transferable Birr Accounts (NR-T)

 An account maintained in local currency by the debit of which
funds could be transferred abroad in foreign exchange without
the necessity of obtaining foreign exchange permit.
 Convertible for all practical purposes;
 Branches maintaining NR accounts shall ensure that all Checks
issued for use of these account holders are distinctively marked
as “NR”.
 5. Foreign currency Checking accounts

5.3 Non-Resident Non-Transferable Birr Accounts (NR-NT)

 NR non-transferable Birr account is maintained in local
currency for the account holders of NR FCY and NR
Transferable Birr accounts.
 The purpose of which is to enable them meet their local
expenses same as NR transferable Birr account.
 Its convertibility is not automatic as the NBE must approve it;
 NR-FCY and NR-transferable Birr accounts shall be credited
only with the following items:
 Foreign exchange receipts from abroad;
 Payments from another transferable Birr account;
 Payments from residents of Ethiopia effected under specific authorization
of NBE;
 6. Foreign Currency Fixed Time Deposit
Account
 Non-Resident Ethiopian and Non-Resident foreign nationals of
Ethiopian Origin can open Non-Resident fixed time deposit
account.
 The minimum maturity period for such account shall be six
months.
 The minimum amount required in an initial deposit to open a fixed
deposit foreign currency account shall be USD 5,000.00 or its
equivalent in any of the eligible foreign currencies.
 Interest rate for such type of account shall determine in accordance
with the international financial market rate (LIBOR Rate).
 A fixed deposit foreign currency account can be closed upon
request by the depositor with a prior notification of not less than 7
working days.
 PART II: BANK SERVICES,
OPERATION AND PROCEDURES
 1. Teller Cash and Non- Cash Operation
1.1. Collection
 Collection is a process of:
 Receiving
 Verifying
 Posting
 Transacting
 Storing
1.1.1. Cash Deposit and Collection services
 All cash Deposit shall be counted and verified physically.
 For any Cash deposit system generated slip shall be handed
over.
 case of network failure, manual tickets shall be used as a
deposit voucher.
 All NBE Cash Deposit and collection directive are applicable.
1. Teller Cash and Non- Cash Operation

1.1.2. Cheque/CPO Deposit

 Cheque/CPO can be accepted for deposit with
complete presentation regarding:
 Amount in words and figures to agree
 Existence of drawers’ signature
 Clearly specified payee
 Appropriate endorsement
 Alteration of originally written word/figure must be
accompanied by the drawers’ signature
 Payment period shall not be out of dated or postdated.
 The Bank is obliged to pay all cheques drawn by account
holders
1. Teller Cash and Non- Cash Operation

 The signature on the cheque shall be

verified
 For other/Our bank Cheque, crossing
stamp and accepted for deposit pending
clearance stamp with initials shall be
placed.
 Cheque deposit slip that contains all the
details and signed by the depositor shall be
collected.
 1. Teller Cash and Non- Cash Operation

2.1.3. Cheque/CPOs Clearance

I. Outward Cheque/CPO Clearance
 Other Bank cheques/CPOs shall be processed using
cheque truncation system (CTS)/ (Cheque point system).
 Each cheque shall be:
 captured
 Verified
 authorized
 uploaded
 1. Teller Cash and Non- Cash Operation
 Other bank cheques/CPOs having higher value
(200,000) shall undergo by the special cheque clearance
through real time gross settlement (RTGS) system.
 Cheques that are accepted shall be credited to the
customer account on the fourth date (Morning 2:00-
3:00 local time) after the cheque is processed.
 Rejected cheques shall be uploaded to CBS at the third
date (4:00-5:00 pm).
 Branches shall pass reversal entries for rejected cheques.
 Branches shall clear any pending transaction on CTS
system for end of day maintenance.
 1. Teller Cash and Non- Cash Operation

II. Inward Cheque/CPO Clearance

 Branches receive physical cheques from other banks and
simultaneously obtain the detail of received cheques by electronically
transmitted data .
 The branch must verify details of the message, authorize and upload
them to CBS by using Cheque truncation system (CTS).
 All special clearance vouchers credited to our bank account have to be
properly verified.
 Special transmitted messages through (MT 103) from other banks shall
be credited to the customer account after confirming the customer
within five consecutive days.
 1. Teller Cash and Non- Cash Operation

1.2. Payment/Withdrawal
 Withdrawal is a process of translating Customer’s
financial instructions or payment claim in to
cash/statement.
A. Withdrawals from Checking Accounts:
 When a cheque/CPO is presented for withdrawal the same
details shall be cheked as cheque deposit.
Withdrawals from checking accounts can be made by:
 The account holder for self or order
 standing instruction from account holder.
 Alternate banking systems.
 Written instruction from ERCA anti-corruption commission,
 1. Teller Cash and Non- Cash Operation

B. Withdrawal from Saving Account

 Saving accounts can be opened with or without pass book.
 In cases when the customer request withdrawal of cash
without pass book, he or she shall be entertained only by
providing his/her ID card .
Withdrawals from saving accounts can be made by:
 withdrawal voucher signed by the account holder or
Authorized signatory.
 By written standing instruction
 By Alternate banking systems
 By the instruction from ERCA, anti-corruption
commission, Ministry of pension, court, etc.
1. Teller Cash and Non- Cash Operation

C. CPO/ Cashiers Payment Order / Payment

 Verify the signature on the CPO and
confirm the originating branch.
 Check the CPO on the system
 Identify the client and make the client
endorse the CPO.
 If the presented CPO is originated by other
branch, payment shall be affected by cross
checking with the originating branch.
1. Teller Cash and Non- Cash Operation

D. Payment for Incoming International

Money Transfer
• Upon receipt of the reference Numbers
from the customer, the availability of
message and its correctness shall be
ascertained on the system.
• All tickets/vouchers should be counter-
signed by the appropriate signatories.
 1. Teller Cash and Non- Cash Operation
1.3. Other domestic services
A. Telegraphic Transfer (TT)
 Transfer of funds from one branch to another branch by the order of
the remitter
 The remitted amount will be converted to inactive if not collected by
the beneficiary within 30 days from its issuance date .
 When telegraphic transfer (TT) is issued from customer account,
verify that the name, signature and account number of the remitter.
Handling of TT by Originating Branches
 The remitter shall fill the application form prescribed for TT transfers.
 Clearly and accurately indicate full names, address including
telephone numbers of both senders and recipients while posting.
 The system generated instrument number shall be sent through SMS
to both the remitter and beneficiary automatically.
1. Teller Cash and Non- Cash Operation
Handling of TT by Paying Branches
 The paying branch should ascertain the correctness of the
message against the beneficiary filled application for
payment.
 Properly identify the payee against the presented
identification card upon payment.
Revalidation of Expired Telegraphic Transfer
 The applicant (Sender) or beneficiary shall present a written
request with signed undertaking
 Consent from the applicant (Sender) shall be presented
 The originating branch manager or his/her delegate shall
check the appropriateness of the beneficiary.
 1. Teller Cash and Non- Cash Operation

B. Account to Account Transfer

 Account holder must fill and sign the ‘predesigned
application form or written application letter’.
 Proper identification and maker- checker process
shall be made.
C. Cashiers Payment Order/ CPO
 CPO is issued either by debit an account or by of
cash.
 The following formalities shall be fulfilled: -
 Verify the signature on the CPO application
 Check all necessary information on the CPO
 1. Teller Cash and Non- Cash Operation

Treatment of Lost CPO

 A letter specifying the beneficiaries' consent and clearly
stating to refund the lost instrument,
 Collecting and verifying signed letter of undertaking
from applicant stating his/her readiness to assume
responsibility for any claim arising from the refund or
effecting the payment,
 Checking whether the requested CPO is still
outstanding and valid on the system,
 The beneficiary letter shall be authenticated to confirm
its genuineness
 Proper identification of the customer and authorization
 1. Teller Cash and Non- Cash Operation

Revalidation of Expired CPO

 ACPO after six months is reserved to the issuer and the
originating branch manager shall revalidate CPO on
core banking system for payment upon written request
with signed undertaking le
 Payment to the beneficiary could be undertaken when:
-
 Consent from the issuer is presented by the beneficiary;
 Written request with signed undertaking letter is presented
 Valid identification card of the beneficiary is presented and;
 Approval from Domestic Banking operation directorate is
obtained.
2. Facilities for International Institutions &
large local currency depositors
2.1. Facilities for International Institutions
 International institutions, NGO’s and exporters or any other
foreign currency earners require trust worthiness and extended
reach from their financial service provider.
 The organization is expected to channel a minimum of USD
500,000.00 or its equivalent amount in other foreign currency
(i.e., GBP, EUR) to the bank annually for a minimum of ten years.
 Credit Facilities to the employees of the organization as per the
following terms and conditions.
 The aggregate loan to be granted to employees of the
organization shall not be greater than 50% of organization's
annual average foreign currency deposit channeled through the
Bank.
 2. Facilities for International Institutions
& large local currency depositors

Type of Loan Loan period Interest rate Equity collateral

contribution
Residential housing 25 years Saving interest 1-5% Building to be
construction or purchased
purchase loan
Non-commercial 15 years Saving interest 5-10% Automobile to be
Automobile loan age purchased
less than ten year
from year of make
Consumer loans of up 3-5 years Saving interest + 2 none Personal guarantor
to one year salary
income
2. Facilities for International Institutions
& large local currency depositors
2.2. Facilities For large local currency depositors
 Large private companies, public enterprises and factories
are another major target.
 The bank shall provide Soft Credit Facilities to the
employees of the organization as per the above terms and
conditions for international institutions.
 The aggregate loan to be granted to employees of the
organization shall not be greater than 75% of the total
annual deposit of the organization.
 The organization is expected to channel a minimum of birr
50 million to the bank that shall be maintained for the
upcoming ten years.
 PART III: RELATED ISSUES ON
CHECKING AND SAVING ACCOUNTS
 1 Transferability of Cheques
 Cheques are simple and convenient to transfer
funds from one individual or entity to another.
1.1 Endorsement
 Endorsement is the signature of the holder or the
bearer at the back of the cheque
Bearer Endorsement
 Endorsements to bearer render the instrument
(cheque) freely transferable
 If the cheque is initially made out to bearer, it can
be transferred by simple delivery.
 1. Transferability of Cheques
Order Endorsement
 It contains the name of the specified legal entity or
“Order” i.e., the cheque can be cashed by the named and
specified person or his designate as may be indicated.
 Cheques are printed thus: “Pay to the order of” or “Pay
……………. Or order”. Such cheques require endorsement
and delivery.
Restrictive Endorsement
 If cheques contain such endorsements like “pay Ato
KebedeTesema not to order” such endorsements are
called restrictive.
 1. Transferability of Cheques
1.2. Crossed cheques
 Crossing is the drawing of two parallel lines across the face of a cheque.
General Crossing
 General Crossing refers to a cheque which bears across its face two parallel
transverse lines
 Such cheque can be paid by a bank or can be accepted for deposit to an
account.
 It is transferable by the first payee to another, who in turn may deposit it into
own account.
 It can also be paid in cash if the payee or the last endorsee is our customer.
 1. Transferability of Cheques
Special Crossing
 Special Crossing refers to a cheque bearing across its face
two parallel transverse lines, and in addition, the name
of the specific bank written between the lines.
 The named bank may also especially cross the cheque to
another bank for collection.
 A specially crossed cheque can only be paid by the drawer
only to a named bank or where the latter is the drawee to
a customer of the drawer bank.
 A bank may not acquire general or specially crossed
cheques except from one of its customers or from another
bank.
 1. Transferability of Cheques
Deletion of Crossings
 customers can delete the crossings on the
face of the cheques by affixing their
signature.
 A practice of presenting such cheques for
cash payment cannot be accommodated
exceptionally in writing prior to the
approval of payment by the drawer.
 1. Transferability of Cheques
3.2 Restricting Negotiability and Transfer by
Endorsement
 Cheques may also bear terms shown below which
restrict negotiability or transfer by endorsement in
addition to crossing (General or Special)
 A cheque, which bears phrase “Account Payee Only”
cannot be paid in cash or transferred by endorsement.
 Where a person takes a crossed cheque that bears on it
the words “Not Negotiable”, the person who obtains the
cheque has no greater rights to it than the person who
gave it.
 2. Insufficient Fund Cheques

Returned cheque
 Cheque shall be returned for a valid reason
which is stipulated by NBE.
 Register book for returned cheque
containing the following shall be
maintained
Name and account No. (payee)
 Cheque number & Amount
Bank and branch name of the drawer
 Date and signature
 2. Insufficient Fund Cheques
Insufficient Fund Register Book shall contain the
following details:
 Name and address of the bank and branch;
 Name, tax identification number, Account No. and
address of an account holder
 Date on which the cheque was dishonored and
frequency of drawing dishonored cheque;
 amount of money stated in the dishonored cheque;
 Cheque number of dishonored cheques;
 Date Returned
 Name of beneficiary
 2. Insufficient Fund Cheques
Dishonored Cheque for the First time

 Record on the Register book as well as on the bank CBS.

 Block all debit (outgoing) transactions against this
account until the dishonored cheque is fully settled.
 Charge the customer account as per the bank’s terms
and tariffs manual.
 If the customer obeys all its commitment regarding to
first dishonor cheque and not issue other dishonor
cheque for twelve consecutive months, the customer is
removed from dishonor cheque register & CBS then
considered as clean.
 first written warning.
 2. Insufficient Fund Cheques
Dishonored Cheque for the Second time
 Record the incident on Cheque Register and the bank’s CBS;
 Block all debit (outgoing) transactions against this account until all
the cheques which have been dishonored & registered are fully.
 Levy a fine of 3% of the amount appearing on the cheque dishonored
for the second time but not exceeding Birr 25,000.
 Final written warning stating the subsequent action.
 If the penalty fee could not be covered from the balance of account
holder, it shall be kept in a Memorandum Account as off-balance
sheet item and whenever the cash is collected an income could be
realized.
 If the customer obeys all its commitment regarding to all dishonor
cheque and not issue other dishonor cheques for the third time for at
least for twenty-four consecutive months, the customer is removed
from dishonor cheque register & CBS then be considered as clean.
 2. Insufficient Fund Cheques
Dishonored Cheque for the Third time
 Record the incident on the Register book and the
bank’s CBS;
 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);
 Respective branches shall properly fill current account
closure reporting format.
 Respective branches shall notify the customer in
writing stating the reason for account closure.
 Domestic Banking Operation Directorate will send a
report to NBE.
 2. Insufficient Fund Cheques
Conditions for Deletion of Mis-Use of cheques from
NBE Delinquent List
 The drawer is suspended from use of cheque account for a
minimum of 12 consecutive months effective from the date
of closure of the account by the branch;
 The drawer shall present satisfactory evidences; These
shows all cheques which have been dishonored &
registered are fully settled.
 All dishonored cheques penalty charges related to the
previous closed cheque account shall be collected.
 Submit a written application to the NBE with a copy to the
Federal Police Commission, indicating their commitment
to reopen their checking Account.
 3. Stop Payment Orders
 The account holder must have enough fund to cover the cheque
 The stop payment sanction shall be released if the drawer fails to
produce police evidence within 15 working days.
 The CSS shall bind the stop payment for fifteen days until the
customer bring police evidence.
 If the customer brings police evidence within fifteen days, the
expiry date shall be extended for an unlimited time.
 Except a lost or stolen of cheque, a Branch may not consider
whatsoever reason as valid ground to accept stop- cheque
payment order.
 All the necessary charges in this respect shall be collected from
the customer as per the laid down terms and tariffs manual.
 Court Authorities, ERCA, Anti-Corruption and Financial
Intelligence Bureau can stop operation of an account in its
entirety or stop payment for various reasons.
 4. Loss of Passbooks
 In the case of loss of pass book from stock or from
Customer Service Officer’s it must be reported
immediately to Domestic Banking Operation
Directorate, and the Directorate shall issue circulars
for precautionary measures related on the report.
 In the case of loss of passbook from account holder:
 The customer is requested to fill out an official declaration form
and sign it. The signature is then verified.
 The balance in the old account shall be transferred to the new
account and a fresh passbook is issued
 All documents pertaining to the old account should be taken
out, marked “closed” and handed over to the auditor for filling.
 5. Suspense Accounts
Suspense Accounts- are transactions in a branch or correspondent
banks, which do not end within the accounting period.
 Uncleared Effects–Local – are transactions that need to be cleared
within the Bank branch network or within the domestic inter-bank
clearing system.
 Uncleared Effects–Foreign –are transactions that cross the
national boundary to be cleared and kept until the proceeds are
credited to the account maintained with correspondent banks.
 Accounts Receivable – are items that are owed by customers/staff
such as double payments, misappropriated money, etc. and expected
to be converted into cash within the accounting period.
 Accounts Payable – are items that are payable to customers or owed
by the Bank and expected to be settled within the accounting period.
 Accounts payable (Liabilities)are those obligations of the Bank to
be settled through the payment of cash within the accounting
period,
 5. Suspense Accounts
Follow-Up of Suspense Accounts

More than 90 days •unclear suspense items can not be kept at branch level.

Older than 45 days •Branch Managers, Assistant Branch Managers, and supervisors shall be held responsible, individually or collectively

30- 45 days •Unusual and high amounts of outstanding suspense items should be verified with the originating branch
 5. Suspense Accounts
Maintaining Suspense Accounts
 Branches should maintain system generated reports for suspense accounts,.
 All balances of outstanding items tally and balance in the schedules record
and summary reports generated by branches must be agree at any instance.
 Follow up and ascertaining the authenticity of the transaction should start
by the telephone inquiry early from one month to forty-five days.
 For long outstanding items aged more than forty-five days’ inquiry letter
should be sent to the originating branch.
 Big amounts should also be verified for their authenticity without waiting
for the 30- or 45-days’ limit.
 It is very important to note that branches or offices receiving an inquiry
letter are responsible and obliged to give replies within maximum of three
days from the date of receipt of the message.
 Branch Manager, Assistant Branch Manager and supervisors are equally
responsible and will be held accountable for keeping items in suspense and
without follow-up for more than ninety days.
 7. Frauds and Forgery
 Fraud can impose significant damage at community,
organization or individual level and its potential
consequences can be financial, operational, legal,
and strategic.
 Fraud comes in all shapes and sizes, large and
complex, small and simple, and anything in between.
 Appropriate attention shall be given especially
considering the current digital technological
possibility to induce fraud more efficiently than
before.
 7. Frauds and Forgery
List of Frauds in Domestic Banking
Operation Context
 Forged signatures on various types of documents
 Forged official seals (Rubber Stamps)
 Fraudulent making or alteration of writing,
 Fraudulent making or alteration of writing,
 Forged endorsements due to lost cheques of
customer or the bank.
 Misrepresentation-forged identity card.
 7. Frauds and Forgery
• Fraud Prevention and Detection Process
 All procedure of the bank shall be strictly adhered accordingly,
 All documents should be carefully checked.
 Awareness of the dangers involved in accepting forged
documents.
 Be active and vigilant at their work especially on the duty of
payment.
 Employees shall relax at the same time work attentively-.
Perpetrators of fraud may use overwhelming environment as
good opportunity.
 Employees shall be expected to be accurate and prompt. Quality
of work shall get priority.
 Know your customer. /The bank AML and CTF procedure and
guideline shall be followed without compromise.
 7. Frauds and Forgery
 Whenever suspicious or gray areas appear…the case shall be forwarded to
supervisors.
 Business relationship shall not be established until all relevant parties are
identified and/or nature of the business planned to be conducted is
determined;
 Risk based approach to the KYC requirement shall be taken
 Any inconsistent activity shall be examined to find out whether or not there is
element of money laundry or terrorism financing;
 Branches shall identify ultimate beneficial owner and verify the identity
 Identity shall be established in natural person customer or legal person or
arrangement customer category;
 The Bank shall conduct identification of shareholders whether or not they are
ultimate beneficial owners;
 Whenever ambiguous documents are presented, their source should be traced.
 Conversation with familiar persons at time of busy hour may mislead
Customer Service clerks/ Jr Officer/Officer. Concentrate first and for most on
the work and devote your attention on what you are doing.
PART IV: E-Banking, Credit, IFB
and IBD Products and Services
 1. E-banking Products and Services
 E-banking refers to a banking arrangement, with which the
customer can perform various transactions electronically.
 The range of services covered under E-banking are:
A. Internet Banking (OBDX):
 The customers are able to perform a number of
transactions, using the internet, through the bank’s
website or application.
B. Mobile Banking (USSD):
 Mobile applications with which you can perform
transactions at your fingertips using any phone with
USSD code *866#
 1. E-banking Products and Services
C. ATM (Automated Teller Machine)
 A machine with which you can:
 withdraw cash
 Check your account status
 Transfer fund
 change Debit Card PIN
D. Point of Sale (POS):
 The customer makes a payment, using a plastic card, for
the purchase made or services received by only swiping
the card.
E. Electronic Fund Transfer (EFT):
 When money is transferred electronically from one bank
to another bank direct debit, direct deposits, wire
transfers, RTGS and CTS etc.
 1. E-banking Products and Services

Benefits of E-banking
• Enables digital payments,
• Encourages transparency.
• It allows 24/7 access to the bank account.
• Sends notifications and alerts to get
updated.
• It lowers transaction cost for the banks.
• It is convenient and easy for customers.
 1. E-banking Products and Services
1.1 Hello cash Mobile and Agent Banking

 Address the problem of low financial inclusion

and facilitate local money transfer, payment,
cash deposit and cash withdrawal;
 provide access to financial services through an
extensive branch and agent network.
 Reaches out banking service to its existing and
potential customers who reside in remote areas.
 1. E-banking Products and Services

Hello cash Mobile

 Hello cash service enables customers to carry
out four key financial transactions using *819#
:
 Deposits
 Withdrawals
 Transfers
 Payments

 Allows multiple banks to serve each

other’s customers.
 1. E-banking Products and Services

Agent Banking
 Allows customers to transact financial
service through Agent network.
 Agent is legal business entity agreed with
the bank to recruit hello cash customers
and provide agency banking services.
 The bank pays commission for each service
provided by the agent.
 It is a form of branchless banking.
 2. Credit Products and services
 Any and all commitments or obligations under which the
bank agrees to make payments on behalf of the borrower .
Types of Credit Products:
A. Term Loan:
 Granted for working capital, asset financing and/or project
finance to be
repaid within a specific period of time with interest.
 Common term loans:
 Import, Export, Wholesale and retail trade (WRT)
 Miscellaneous domestic trade
 Hotel and Tourism,
 Transport Service
 Transport Vehicle
 Automobile loan
 Mortgage loan.
 2. Credit Products and services
B. Overdraft Facility
 A customer may be allowed to draw beyond
the deposits of its current accounts for the
sole purpose of the day-to-day operational
needs of a viable and ongoing business.
 Common Overdraft loans:
Import, Export, Wholesale and retail trade (WRT)
 Miscellaneous domestic trade
 Hotel and Tourism, Transport Service.
 2. Credit Products and services
C. Overdrawal:
 A temporary facility that grants a customer the right to
withdraw a specified amount of fund over and above the
Overdraft limit.
 Common overdrawal loans:
 Import, Export, Wholesale and retail trade (WRT),
 Miscellaneous domestic trade.
D. Merchandise Loan Facility:
 short-term credit facility, which is granted through physical
possession of the merchandise under dual/sole control
arrangement. .
 Common Merchandise loan facility:
 Import, Export, Wholesale and retail trade (WRT),
 Miscellaneous domestic trade.
 2. Credit Products and services
E. Pre-shipment Export Credit (PEC):
 An advance extended to exporters to bridge their
temporary working capital requirement for:
purchase of exportable items
 processing and converting them into finished goods
transporting, warehousing and packing until such time the
goods are shipped.
 Pre-shipment export financing is considered for
exporters who have bankable credit risk rating, high
integrity and track record in meeting
commitments.
 2. Credit Products and services
F. Letter of Guarantee (L/G):
 A written promise/irrevocable obligation by the Bank to
compensate (pay a sum of money) to the beneficiary
(local or foreign) in the event that the obligor fails to
honor his/her/its obligations in accordance with the
terms and conditions of the
guarantee/agreement/contract.
 The most common form of guarantees issued on behalf
of Wegagen Bank customer are:
 Advance-payment guarantee;
 Performance-bond guarantee;
 Bid-bond guarantee;
 Customs-bond guarantee
G. Asset and Project finance:
Asset finance:
 Is a Medium-Term Loan financed for
acquisition and/or leasing of fixed business
assets
Project finance:
 It is a medium or long-term loan financed for
the establishment of a new project and the
expansion of an existing business
 2. Credit Products and services
Loan Processing Steps:
 Lending process starts with recruitment of
potential credit customer through direct
marketing
 There are five major steps:
1. Preliminary Interview
 The nature and experience of the borrower’s business
 Business conditions
 The customer character and socioeconomic status
 Type of product producing and/ or service provided.
 2. Credit Products and services
2. Application and Documentation
 Application for credit facility should contains:
 Purpose of the loan,
 Amount requested
 payback periods
 Mode of payment, and collateral offer.
 Documents required commonly for any loan request:
 Certificate of registration, renewed trade license,
 TIN, marriage certificate, tax clearance,
 Financial statement (Balance sheet, Income statement and
other supportive documents),
 Collateral offer (Land Holding certificate/LHC and Libre),
 Memorandum association, article of association and TIN & tax
clearance of General manager (for plc).
 2. Credit Products and services
3. Analysis and Approval of loan
 Critical assessment of a business entity to
see whether it is strong enough to warrant
lending of money to it.
 Loan Approval Form (LAF) is the principal
credit decision document on which relevant
information on the loan request,
recommendations and the credit decision
are to be recorded.
 2. Credit Products and services
4. Contracts, Disbursement and Loan File
Administrator
 Contract preparation commences immediately after
getting the customer’s consent.
 Security contracts shall be registered with the concerned
government organ such as; Buildings, motor Vehicles,
business Mortgage and Construction Machinery
 The Bank should secure appropriate insurance policies
for all insurable collateral before disbursement of any
loan
 Disbursement of a loan shall be made only after the
credit request is duly approved;
 2. Credit Products and services
5. Regular Loan Follow –Up
 Lending decisions are made on sound credit
risk analysis/appraisal and assessment of credit
worthiness of borrowers.
 However, loan granted on the basis of sound
analysis/appraisal might go bad because the
borrower may not meet his/her/its obligations.
 For this reason that proper follow up and
monitoring is essential.
 2. Credit Products and services
Non-Performing loans (NPL)Management
 A nonperforming loan (NPL) is a loan in which the
borrower hasn't made any scheduled payments of
principal or interest for some time.
 There are five loan status based on the scheduled
payback period:
S.N Loan Status Mode of repayment

Monthly Quarterly Semiannual Annual

1 Pass 1-29 days 1-89 days 1-179 days 1-364 days

2 Special 30-89 days 90-179 days 180- 364 days 365-729 days
Mention
3 Substandard 90-179 days 180-269 days 365-539 days 730-1094days

4 Doubtful 180-364days 270-364days 540-729days 1095-1460days

5 Loss Over365 days Over365 days Over 2Years Over 4Years

 3. International Banking Products and Services

3.1 Types of trade service products

 Letter of Credit (LC): A Letter of credit which provides credit by means of accepting a
draft, bearing the unconditional obligation of the party which has accepted the draft to
pay at maturity;
 Advance Payment (TT): is a mode of payment under which a seller receives payment
from a buyer prior to shipment of the agreed upon goods or rendering the agreed upon
services;
 Documentary Collection (Cash Against Document)/CAD: is a mode of payment
under which banks handle a seller’s commercial documents with or without financial
documents in accordance with instructions received from the seller in order to deliver
the documents to the buyer (importer) against payment and /or acceptance or against
other terms and conditions;
 Irrevocable Letter of Credit: is a definite undertaking by the Issuing Bank to pay,
provided the Beneficiary complies strictly with the Letter of Credit. The Letter of Credit
cannot be amended or cancelled without the consent of the Issuing Bank, the
Confirming Bank (if the Letter of Credit is confirmed) and the Beneficiary;
 SWIFT: is the acronym for the Society for Worldwide Interbank Financial
Telecommunications. a highly secured private telecommunications network set up
originally for the exclusive use of financial institutions and related market
infrastructures
 3. International Banking Products and Services
A. Eligible Criteria/Requirements for Import
 For Letter of Credit (LC) at branch level
 Performa Invoice
 Insurance certificates
 TIN and NBE number
 Trade license and Certificate of registration
 Permit application and LC application
 For Cash against document (CAD) at branch level
 Performa Invoice
 Purchase order (PO)
 Insurance certificates
 TIN and NBE number
 Trade license and Certificate of registration
 Permit application
 For Telegraphic Transfer (TT)/Advance Payment at branch level
 Performa Invoice
 Insurance certificates
 TIN and NBE number
 Trade license and Certificate of registration
3. International Banking Products and Services
B. Eligible Criteria/Requirements for Export
For Letter of Credit (LC) at branch level
 TIN and NBE number
 Trade license and Certificate of registration
 A copy of sales contract registered by ministry of trade
 Four copies of Bank permit for export of goods
 Copy of authenticated Export Letter of Credit (Lc Invoice/700 message)
 Sales contract for Coffee Beans is approved by the NBE
For cash against document (CAD) at branch level
 TIN and NBE number
 Trade license and Certificate of registration
 A copy of sales contract registered by ministry of trade
 Four copies of Bank permit for export of goods
 Sales contract for Coffee Beans is approved by the NBE
 The exporter’s full undertaking in writing to repatriate the amount involved in the
permit issued within 90 days from the date of issuance of export permit.
 Authorized banks may allow up to USD 500,000 depending on the sales terms, the
buyer’s dependability and credibility.
 National Bank of Ethiopia shall give approval for export permit for value of
exceeding USD 500,000.00 on case-by-case basis.
3. International Banking Products and Services
 For Telegraphic Transfer (TT)/Advance Payment at branch level
 TIN and NBE number
 Trade license and Certificate of registration
 A copy of sales contract registered by ministry of trade
 Four copies of Bank permit for export of goods
 Sales contract for Coffee Beans is approved by the NBE
 Foreign currency incoming ticket through SWIFT marked as “Advance payment
for future export” clearly stating the type of commodity to be exported using the
money transferred in advance.
 Foreign currency advice issued for future export shall be valid for export or refund
for the period of one year only.
 The ticket issued clearly shows:
(1) the reference No.

(2) name of the sender

(3) name of the beneficiary
(4) amount in foreign currency
(5) its birr equivalent;
(6) purpose of payment and
 The classification for Type of Transactions is as follows:
01 = Import, 02 = Export, 03 = Invisible payments, 04 = Franco
Valuta, and
05 = Small Items Export

3. International Banking Products and Services

Permit Number Assignment Procedure
 Assignment of unique foreign exchange number for each
approval is based on the procedure provided by National
Bank of Ethiopia.
 The alpha-numeric foreign exchange permit number
should be composed of five parts.
Parent Bank Branch Type of Permit No Year
Transaction
WGB WHO 01 00001 2021

The classification for Type of Transactions is as follows:

01 = Import, 02 = Export, 03 = Invisible payments, 04 = Franco
Valuta, and 05 = Small Items Export
 4. IFB Products and services
 “A banking business in which mobilizing of funds is undertaken in a manner
consistent with Islamic law or Sharia principles.”
IFB Products
I. Saving Account
A. Wadiah/Amanah
 Wadiah means “deposit;”
 The deposit is guaranteed for full return on demand;
 The usage of the deposit is subject to permission by the depositor;
 No benefit (interest/profit) attached to the account; but the bank may give
voluntary gift-Hibah (monetary or in kind).
Requirements:
 The minimum balance to open the account is Br. 25.00
 Banks operate this account using passbook and digital banking services.
 No service charge in relation to such account except for transaction effected
via ATM, POS or other cash dispensing outlets and for lost passbook
replacement and other cost recovery activities.
 4. IFB Products and services
B. Special Wadia Accounts
Minor Wadi’ah Saving
 A guardian/ tutor opens an account for a minor
 The minimum balance to open the account is Br. 25.00
 Whenever the minor reaches 18 years of age the account may be changed to the
normal Wadi’ah Saving.
Women Wadi’ah Saving
 The minimum balance to open the account is Br. 100.00
 Free service charge for fund Transfers Within the Bank or Low Transaction Fee;
 Special visa/ATM card
Wadi’ah Muday Saving
 Related to the conventional Muday-Saving Box saving account
 Designed to daily money makers & wage workers
 The usage of the account is customers deposited from their income with own
custody “Wadi’ah Muday-Saving”.
 Then the accumulated amount should be deposited in the account on regular basis
without profit/loss.
 Banks operate this account using passbook and digital banking services.
 4. IFB Products and services
II. Current account/Qard:
• Service giving banks operate based on Amanah or Qard principles.
• The word Amana refers to deposit in trust; Qard is loan;
• Something which is given by a person to another to keep for safe
custody.
• The account holder shall authorize the Bank to use his/ her funds
at the Bank’s own risk, in any Shari’ah compliant investment but
don’t allow profit/loss which arises from the financing.
• One of the modern applications of Qard is Current Account in
which the fund is considered as loans not as deposit;
• Opened with a Minimum balance of Birr 250.00.
• Opened and operated by literate individual.
• Cheque book facility is available
 4. IFB Products and services
III. Mudarabah Accounts
A. Mudarabah Investment Account
 Customers of this type of account keep their money to generate
profit,
 The customer provides the funds while the bank provides expertise
 profit sharing is agreed first on the profit-sharing rate;
 The fund investor (customer) is called “Rabul Mal”, & the fund
manager (bank) is called “Mudarib”.
 The Bank shall issue to the depositor an investment account
certificate or a fixed-time deposit certificate in his name.
 In case of loss the customer will be liable.
 Where the Investment Account Certificate is withdrawn before
maturity; No profit is to be paid for investment placed on less than 3
months or less than half of the agreed tenure.
 Can be short (1 year), medium (1-3 years) or long- term (above 3 years
 4. IFB Products and services
There are two kinds of Investment accounts:
Restricted Mudarabah Investment Account
 It is the owner of the fund (customer) specify the fund to be
used in a particular place or business for a fixed or for
specified purpose
Unrestricted-Mudarabah Investment Account
 Depositing money in a Bank without any pre-defined
condition;
 The management of the fund is left to the Bank (Mudarib),
 The bank shares profit with the customer based on pre-
agreed rate.
 The minimum amount required to have such investment
Account shall be Br. 25,000.
 4. IFB Products and services
B. Mudarabah Saving
 Opened with a minimum balance of Birr 1000.00
 Operated with passbook & entitled to ATM Card
 Profit rate to be paid is determined based on the banks
performance during the profit payment period.
 No service charge in relation to such account except for transaction
effected via ATM, POS.
C. Hajj Mudarabah Saving
 Designed specifically to help customers realize their desire of
performing Hajj.
 The minimum opening balance is Br. 500;
 The profit calculation is based on the lowest monthly balance.
 No service charge in relation to such account except for transaction
effected via ATM, POS.
 4. IFB Products and services
D. Mudarabah Hybrid Saving Account
 Also called Zero Balance Account
 The account to be transacted using cheques
 shall be opened to Edir, Equib, cooperatives, trade unions and other
communal associations.
 The minimum balance to open this Account is Br. 10,000;
 The total number of cheque withdrawal to be made per month shall
not exceed three cheques. In case of its occurrence the customer shall
be charged Br. 25 per cheque.
 No debit card shall be issued
IFB Services
 Hawalah /Money Transfer/
 Safe deposit box
 Kafalah /Letter of Guarantee/
 Wakalah /Agency/
PART V: RESOURCE MOBILIZATION AND
PROFESSIONAL ETHICS
 1. Resource mobilization
 Engaging in all the preparatory and implementation
activities involved with securing funds, equipment,
personnel,, and any other means to produce the data,
product and services to meet the priorities of the
customer.
 In order to scale up the current deposit mobilization
effort of the bank towards meeting its goal of deposit
mobilizations with coordinated effort of head office
organs and branches.
 The following resource mobilization techniques that
should be employed: -
 1.1. Persistently Promote Service Excellence

 There is a strong correlation between customer

service and loyalty.
 It costs you five times as much to win a new
customer than to keep a current one.
 Connecting to your customers on an emotional level
is the key to establishing a lasting relationship .
 It is essential that you provide a unique customer
experience by proactively anticipating your
customers’ needs and expectations and exceeding
them, every time.
 1.2. Market the various products and
services offered
 As discussed extensively on part 1 and 2 of this
module Wegagen Bank has a variety of products
and services reedy to be used by its customers.
 Currently consumers have more options than ever
to consider when choosing a bank .
 Each work unit of the bank must familiarize
themselves with and sell these products to each
customer they encounter.
 Marketing and creating customer awareness on the
various products of the bank
 1.3. Establish supportive partners and
Identify target areas
 Establishing strong relationships with microfinance,
saving & credit cooperatives, unions, and associations
 collaboratively work to change the saving culture of
rural & urban communities and community leaders,
 Targets:
 SMEs that make periodic own savings to meet their plans of
expansion
 Petty traders operating under shades – traditional coffee and
tea vendors, fast food vendors, etc;
 Wholesalers, retail traders and service providers;
 Civil servants that have already developed some kind of
saving habit
 1.4. Enhance Money Tracking
Activities
 Large flow of cash in connection with government
projects, Payments effected by one branch to others, need
to be traced, tracked and channeled to the banking
system.
 Expenditure tracking may not only focus on government
expenditures, but also on private expenditures that have
significant value.
 Activities to be carried out while tracking Money include:
 Lobbying and convincing recipients, especially when they are
not the bank’s customers;
 Use of E-banking services at project sites;
 Large account holders need to be monitored at all levels
including at the corporate, districts and branches level.
1.5. Cross selling alternative Channels and
products
 Account opening has to be associated with
E-banking services with demonstrative
briefing on how to use the channels.
 We can also target International Institutions
and NGOs to channel fund transfers though
the bank using E-banking services.
 Fully utilize co-branded payment solutions
and oversee proper functioning of POS and
ATMs along with the concerned units.
 1.6. Maintaining smooth relationship with
exiting and potential corporate customers

 Prioritize the banking needs of corporate

customers and provide personalized service.
 Maintain close contact for lasting relationship.
 work as a team with other branches .
 plan ahead of time to satisfy the customers’
need periodically
 Identify potential/corporate customers and
undertake preliminary assessment on their
banking needs
 1.7. Foreign Currency Mobilization
Remittance Users
 Make sure that the lists of international money transfer agents working
with the bank are known by all branch members.
 Ensure that the required access rights and passwords for the respective
international money transfer agents are availed to adequate branch
staffs
 Ensure provision of the service with speed and accuracy
 List out previous remittance users and communicate them to use the
bank again by working on their grievances, if any.
 Create register book for remittance users and call them ahead of
holidays for the service or persuade them to channel their remittance
through the bank.
 Identify employment agencies that work with sending of workers in the
Middle East and establish lasting relationship.
 Prioritize any services and requests from Exporters and remittance users
 1.7. Foreign Currency Mobilization

Exporters
 Identify list of previous exporters of the bank and approach them
to reset the button and convince them to work with the bank again.
 Use chamber of commerce, Ministry of trade and industry,
Exporters associations, and other government organs as well as
business directories to get information on list of exporters.
 Target service exporters that include Hotels, Travel agents, Cross
boarder investment Consulting firms and dealers, Transit and
logistics companies, and Airlines.
 Initiate opening of forex bureaus on potential areas and follow its
performance
 Attract Diasporas to work with the bank by approaching their
associations and using existing real estate developers as well as
existing customers of the bank.
 1.7. Foreign Currency Mobilization
International Institutions and NGOs
 Attract international institutions and non-governmental
organizations to work with the bank through tailored services for
the organizations as well as their employees that includes:
 Priority banking service to the entity supported by alternative e-banking
channels like internet, mobile, and card banking..
 Availing foreign currency for its employees travel abroad and
international payments of the organizations.
 Handle Payroll accounts free of charge.
 Provide soft credit facilities for purchase of residential houses,
automobile, and personal loans at discounted interest rate to their
employees.
 Undertake scheduled visit to discuss issues on the bank’s service provision
and further strengthen the relationship.
 Undertake close follow up to ensure expected foreign currency
generation as well as other benefits are obtained by the bank.
 Forward any hindrances faced that are beyond the branch capacity
to the concerned units for immediate solutions.
 1.8. Additional consideration
• Gather information on other bank’s resource mobilization activities and
provide feedbacks to districts and branch operations directorate for possible
endorsement in the future.
• Suggest new products and services that are demanded by customers to districts
and concerned head office units for further study.
• Provide feedbacks to branch operations directorate for further improvement
on service excellence.
• Initiate higher level management visit by establishing contacts to negotiate
with potential depositors, exporters, foreign currency remitter, if the deal
could not be completed with district managers.
• Initiate a visit by the concerned head office units to discuss in-active/declining
performance of exporters, NGOs, international money transfer agents, and
remittance users.
• Foreign currency generation and deposit targets that are expected to be
mobilized from corporate customers of the bank should be assigned for CRMs
and it should be evaluated against availed credit facilities on monthly basis
(Customer relationship management for high value customers).
 2. Professional Ethics
 Professional ethics encompasses the
professional and corporate standards of
behaviors expected by professionals.
 Professional ethics are principals that
govern the behavior of a person or a group
in a business environment..
 ethics provide rules on how a person should
act toward others in an institutional
environment.
 2.1. Banks Professional ethics

 No profession or industry has maintained higher

standards of conduct than the banking industry.
 A banks reputation is its most valuable asset and is
determined by the conduct of its employees
 Each of us must act, dress and perform in a manner
that is highly professional.
 honesty, integrity impartiality and proper conduct by
officers and employees of the bank is essential to
ensure the proper performance of the Banks business
and continued public confidence in the organization.
 2.2. Basic principles of Wegagen
Banks Professional ethics
• A staff member may not disclose confidential information such as;
account balance, phone number and other relevant information of
one customer to another customer or any other outside party
including yourself,
• Members of staff shall act honestly impartially, and carry out their
duties diligently, efficiently and to the best of their abilities.
• Members of staff should treat customers and colleagues with
courtesy and respect.
• Members of staff may not accept gift or more than modest value of
hospitality from any third party in connection with their duties in
the bank.
• Staff members should respect customer privacy while the customer
is entering private information such as pin number and passwords.
 2.3. Customer snatching between
Branches/districts
 A customer having an account at one branch of our bank can access
his/her account at any branch of the bank & all services without any
restrictions.
 As customer snatching is a serious issue & misconduct, it adds no
value to the bank rather incurs costs.
 The following steps should be applied in combating customer
snatching activity:
 Check whether the customer has an account in another branch
 If the customer already has an account at wegagen Bank, properly advice
the customer that he/she can be served using the existing account.
 If the customer insists to shift his/her existing branch, the branch should
open the account but inform the home branch manager or his delegate.
 The domestic banking operations directorate then reallocates the budget
between each branch in proportion with the deposit balance of the
customer.
 2.3. Customer snatching between
Branches/districts
• However, if the amount of deposit transferred is
deliberately structured to hide the budget to
recipient branch will be increased by the deposit
amount and the case will be further forwarded to
head office discipline committee.
• Debit freezing customer account without any
legal ground but simply to restrict withdrawals is
a serious misconduct.
• Domestic Banking Operation Directorate, HR
Directorate and respective Districts keep record of
branch staffs involved in such malpractice.
THANK YOU !!!