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Commercial Bank of Ethiopia (CBE)

Currently, CBE has more than 27.5 million account holders and the number of Mobile and Internet Banking users also reached more than 4.6 million as of Dec. 31st, 2020 Active ATM cardholders reached more than 6.4 million. CBE combines a wide capital base with more than 40,000 talented and committed permanent employees and more than 22,000 outsourced jobs as of June 30, 2020.

It has strong correspondent relationships with more than 50 renowned foreign banks like Commerz Bank A.G., Royal Bank of Canada, City Bank, HSBC Bank. It has a SWIFT bilateral arrangement with more than 700 others banks across the world for foreign remittances worldwide.

International Trade Service

The Trade Service is one of the core processes of the bank entrusted with the task of international banking services. The services are now provided at all branches of the bank with a single contact point of customer service relationship officers assigned for this purpose only.

DOCUMENTARY CREDIT (L/C):

Documentary credit (L/C): is a written undertaking by a bank given to the seller at a request and/or the instruction of the buyer to make a payment or accept and pay the bill of exchanging (draft) drawn by the seller up to a stated sum of money within a prescribed time limit and against stipulated documents.

  • Import
  • Export

DOCUMENTARY COLLECTION:

Documentary collection: is a method through 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.

  • Import
  • Export

ADVANCE PAYMENT

Advance payment: is a method through which a seller receives payment from a buyer prior to shipment or the agreed-upon goods or rendering the agreed-upon service.

  • Import-Payment through bank transfers
  • Export-Payment through bank transfers, traveler cheques, cash (as long as it is declared).

CONSIGNMENT BASIS PAYMENT

Consignment basis payment: It is a method of payment in which the title to the goods remains with the seller until an agent (distributor) in foreign country sells them. Payment is made to the seller if and when the agent (distributor) sells the goods.

  • Export- it is applicable to perishable items: fruits, flowers, meat, molasses, etc as approved by the National Bank of Ethiopia

GUARANTEE

Guarantee: A letter of guarantee issued by an issuing bank/guarantor is a written undertaking by the bank to compensate (pay sum of money) to the beneficiary (local or foreign) in the event that the obligator/principal fails to fulfill his/her /its obligations in accordance with the terms and conditions of the guarantee.

  • Bid bond
  • performance bond
  • advance payment guarantee
  • loan guarantee
  • retention guarantee
  • customs duty guarantee

FRANCO VALUTA

Franco valuta license(permit): is a license issued to importers of goods on which no foreign exchange is payable.

SMALL EXPORT ITEMS LICENSE

Small export items license (permit): is a license issued for small export items to tourists, foreign residents of Ethiopian nationals who wish to take souvenir, samples, gifts, repairs, replacements, exhibitions, and personal effects and belongingness, etc.

FOREIGN REMITANCE

Inward and outward funds transfers are received in CBE via S.W.I.F.T (The society for worldwide inter bank Financial Telecommunication) which is one of the largest financial messaging systems in the world.

CORRESPONDENT BANKS

Type of Deposits

PERSONAL SAVINGS

A savings account is an interest bearing (minimum 7%), deposit that CBE renders for physical and legal persons (Individuals, organizations, and associations) who can fulfill the Bank’s requirement and are legal.

  • Ordinary Saving
  • Women Saving Account
  • Youth saving account
  • Teen youth saving account
  • Education Saving Account

DEMAND/CURRENT ACCOUNT

Demand Deposit Account (current or checking account) is a non-interest bearing account and is opened or operated by literate customers only. Demand deposit account can be opened and/or operated by a legal agent in the name of the principal, against producing a power of attorney, which shall be attested by the bank’s legal service department or area offices or branch managers, as the case may be. The minimum amount required by the bank to open a current account for individuals or individual traders is birr 500 and for others birr 1000.

  • Ordinary Demand Deposit
  • Special-Demand Deposit Account
  • ECX related Accounts

NON RESIDENT ACCOUNT

This type of deposit is available for foreign residing nationalities of individuals and companies or Ethiopians living abroad (who live more than one year abroad) and Ethiopians by origin but with different nationalities. The Accounts can be used for local payments. These accounts are non- interest-bearing accounts (except fixed time Deposit and Diaspora Non-Repatriable) and the source of deposits are foreign currencies that the bank exchange with. These products are available in selected branches of the Bank.

  • Embassies
  • Diplomats
  • International Organizations
  • Foreign Investors
  • International Charities
  • Expatriate Employees of International Organizations
  • Non-Resident Ethiopians and Foreign Nationals of Ethiopian Origin
  • Exporters

Loan

It is the oldest CBE product and service and also the main source of income of the bank. Loan create investment that play vital role in economic and social development of the country through creating employment. CBE avails huge amount of loan for the over all investment in the country.

INVESTMENT LOAN

It is an act of aquairing money to allocate it on activities expecting better benefits from it. CBE is currently gives the following loans for those eligable for the sector.

  • Term Loan
  • Motor Vehicle Loan
  • Construction Machinery Loan
  • Partial Financing
  • Syndicate Loan
  • Agricultural Term Loans
  • Idea Financing

WORKING CAPITAL

Motor Vehicle Loan

  • Overdraft Facility
  • Overdraw
  • Merchandise Loan Facility
  • Import Letter of Credit Facility
  • Pre-Shipment Export Credit Facility
  • Revolving Export Credit Facility
  • Advance on Export Bills Facility
  • Letter of Guarantee Facility
  • Import Letter of Credit Settlement Loan

MICRO-FINANCE INSTITUTION’S LOAN

A Micro-Finance Institution’s Loan is a loan availed to the Micro-Finance Institutions mainly in the form of term loans that are repayable within short –to medium–terms

CHANNEL FINANCING

1.1 Channel Financing is a form of short-term loan rendered to potential creditcustomers recommended by existing CBE’s prominent customers engaged indomestic manufacturing, agricultural production, wholesaling, retailing orsupplying businesses with which they have a business relationship. The loan isprovided after the supplier or manufacturer provides unconditional letter ofguarantee to CBEor other acceptable collateralif the loan amount is huge.

  • The guarantor may recommend as potential customer(s) to the Bank both his/her/its supplier and/or receiver.
  • The guarantor shall present the recorded business relationship including payment track record and level of purchases/sales.
  • Financial statements and cash flow statement of the two parties along with the capacity of the guarantor to repay both loans in case of default shall be carefully analyzed.
  • The Bank may finance up to 75 % of the submitted sales contract value and maximum of 70% for vehicles.
  • The financing should be extended only the bases of current sales contract and it shall not finance previous sales contracts.
  • The applicant or the would-be customer applies for credit having letter of recommendation from the guarantor.
  • Channel financing should not be rendered to affiliated companies, associates or subsidiaries.

URBAN UTILITIES FINANCING

Urban Utilities Financing is a type of short and medium-term loan granted tomunicipalities & private persons for supplying urban utilities such as

  • dry and liquid waste management
  • abattoirs
  • public ambulance services
  • firefighting
  • street lighting
  • road asphalt and pavement works
  • sanitation
  • roadside public latrine service
  • development of cityparks

CONSULTING FIRM FINANCING

Consulting Firm Financing is a form of short-term loan extended for the purpose ofworking capital financing to business professionals engaged in rendering professionalservices

  • Engineering
  • ICT
  • Law
  • Accountancy
  • Art

INTER-BANK LENDING

An Inter-Bank Lending is a short-term loan extended to alleviate liquidity shortageof other commercial banks. In rendering this credit service, the credit and risk analyst shall evaluate the requestbased on the banking business performance indicators.

The history of the Commercial Bank of Ethiopia (CBE) dates back to the establishment of the State Bank of Ethiopia in 1942. CBE was legally established as a share company in 1963. In 1974, CBE merged with the privately-owned Addis Ababa Bank. Since then, it has been playing significant roles in the development of the country.

Currently, CBE has more than 27.5 million account holders and the number of Mobile and Internet Banking users also reached more than 4.6 million as of Dec. 31st, 2020 Active ATM cardholders reached more than 6.4 million. CBE combines a wide capital base with more than 40,000 talented and committed permanent employees and more than 22,000 outsourced jobs as of June 30, 2020.

It has strong correspondent relationships with more than 50 renowned foreign banks like Commerz Bank A.G., Royal Bank of Canada, City Bank, HSBC Bank. It has a SWIFT bilateral arrangement with more than 700 others banks across the world for foreign remittances worldwide.

VISION

To become a world-class commercial bank by the year 2025.

MISSION

We are committed to realizing stakeholders’ values through enhanced financial intermediation by deploying the best professionals and technology.

CORE VALUES

Our core values detailed below are the operating principles that guide our internal conduct as well as our relationship with our customers, partners, and shareholders.

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