Introduction

Introduction

Background

The banking sector in Ethiopia is rapidly growing and increasingly competitive. Birhan Bank is one of the
leading private banks in the country, with a strong track record of growth and innovation. To gain
practical experience in the banking industry, I undertook an internship attachment at Birhan Bank.

Purpose

The purpose of this fieldwork report is to provide an overview of the banking sector in Ethiopia and
Birhan Bank's position within it. The report will also provide insights into credit analysis and lending
practices at Birhan Bank, and make recommendations for the bank to enhance its credit risk
management and lending operations.

Data Collection

Data for this report was collected through a variety of methods, including:

• Interviews with Birhan Bank staff

• Review of bank documents and records

• Observation of bank operations

Scope

This report focuses on the following areas:

• Birhan Bank's position within the Ethiopian banking sector

• Credit analysis and lending practices at Birhan Bank

• Recommendations for Birhan Bank to enhance its credit risk management and lending operations

Example:

2.OVERVIEW

Overview of the Organization

Example:

Overview of the Organization

Brief Overview

ABC Bank is a leading commercial bank in Ethiopia, with a strong focus on providing innovative and
customer-centric financial services. The bank was founded in 1998 and has since grown to become one
of the largest banks in the country. ABC Bank offers a comprehensive range of banking products and
services to its retail, corporate, and institutional customers.

Major Activities

ABC Bank's major activities include:

• Making loans

• Providing trade finance services

• Offering investment banking services

• Managing foreign exchange transactions

Products

ABC Bank offers a wide range of products to its customers, including:

• Savings accounts

• Checking accounts

• Time deposits

• Loans

• Credit cards

• Debit cards

• Treasury products

Hierarchy and Organogram

ABC Bank has a hierarchical organizational structure, with a Board of Directors at the top. The Board is
responsible for setting the bank's strategic direction and overseeing its operations. The bank's
management team is led by the CEO, who is responsible for the day-to-day operations of the bank.

The following is a simplified of ABC Bank:

Board of Directors

CEO

Management Team

Department Heads

Employees

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3.what i have learned

What I Have Learned

During my internship attachment at Birhan Bank, I learned a great deal about the banking industry and
the specific operations of Birhan Bank. Some of the key things I learned include:

• The importance of customer service. Birhan Bank places a high priority on customer service, and I
learned how important it is to build relationships with customers and meet their needs.

• The process of credit analysis. I learned how to analyze financial statements and other data to assess
the creditworthiness of potential borrowers.

• The different types of loans and other financial products that banks offer. I learned about the different
types of loans, interest rates, and terms that are available to customers.

• The importance of risk management. I learned how banks manage risk and the different types of risks
that they face.

• The role of technology in banking. I learned how technology is used to improve efficiency and
customer service in the banking industry.
Example:.

4.AnalysisExample:

SWOT Analysis

Strengths

• Strong brand recognition and reputation: ABC Bank is one of the most well-known and respected
banks in Ethiopia.

• Wide range of products and services: ABC Bank offers a comprehensive range of banking products and
services to its retail, corporate, and institutional customers.

• Experienced and knowledgeable staff: ABC Bank has a team of experienced and knowledgeable staff
who are committed to providing excellent customer service.

• Strong financial performance: ABC Bank has a strong track record of financial performance and is one
of the most profitable banks in Ethiopia.

• Commitment to customer service: ABC Bank is committed to providing excellent customer service and
has a number of initiatives in place to ensure that customers are satisfied.

Weaknesses

• Limited branch network compared to some other banks: ABC Bank has a smaller branch network than
some other banks in Ethiopia.

• High operating costs: ABC Bank has higher operating costs than some other banks in Ethiopia.

• Reliance on traditional banking channels: ABC Bank relies heavily on traditional banking channels, such
as branches and ATMs.

Opportunities
• Growing demand for banking services in Ethiopia: The demand for banking services in Ethiopia is
growing rapidly, driven by economic growth and rising incomes.

• Untapped market potential in rural areas: There is significant untapped market potential in rural areas
of Ethiopia, where access to banking services is limited.

• Government initiatives to promote financial inclusion: The Ethiopian government has launched a
number of initiatives to promote financial inclusion, which is creating opportunities for banks to reach
new customers.

Threats

• Increasing competition from other banks, both domestic and international: The banking sector in
Ethiopia is becoming increasingly competitive, with both domestic and international banks entering the
market.

• Rapidly changing regulatory landscape: The regulatory landscape in Ethiopia is changing rapidly, which
can create challenges for banks.

5.recommendations and conclusion

Conclusion

The SWOT analysis above shows that Birhan Bank has a number of strengths and opportunities, but it
also faces a number of weaknesses and threats. In order to succeed in the future, Birhan Bank needs to
focus on building on its strengths and opportunities, while also addressing its weaknesses and threats.

Recommendations

Based on the SWOT analysis, the following recommendations are made:

• Build on strengths: Birhan Bank should continue to build on its strengths, such as its strong brand
recognition and reputation, wide range of products and services, experienced and knowledgeable staff,
strong financial performance, and commitment to customer service.
• Address weaknesses: Birhan Bank should address its weaknesses, such as its limited branch network
compared to some other banks, high operating costs, and reliance on traditional banking channels.

• Capitalize on opportunities: Birhan Bank should capitalize on the opportunities available to it, such as
the growing demand for banking services in Ethiopia, untapped market potential in rural areas, and
government initiatives to promote financial inclusion.

• Mitigate threats: Birhan Bank should mitigate the threats it faces, such as increasing competition from
other banks, both domestic and international, and a rapidly changing regulatory landscape.

Example:

Specific Recommendation:

• Increase branch network: ABC Bank should increase its branch network in order to reach more
customers, especially in rural areas.

• Reduce operating costs: ABC Bank should explore ways to reduce its operating costs, such as by
investing in technology and improving efficiency.

• Develop new products and services: ABC Bank should develop new products and services to meet the
needs of the growing unbanked population.

• Invest in technology: ABC Bank should invest in technology to improve its efficiency and reach more
customers.

• Strengthen risk management: ABC Bank should strengthen its risk management capabilities to mitigate
the risks it faces.