1.

Opacity of non interest conventional saving account and interest free banking saving
account. This leads to assume Bank’s commingling of funds.CBE has special saving
account product. Its unique feature is the absence of interest. Dashen bank has a
saving account named non interest saving account.

2. Over liquidity

3. Absence of profit distribution interest free banking products

4. Poor service quality for interest free banking customers

 Absence of customer interface Banking services

 Absence of lunch time and extra time banking service

5. Absence of sharia committee

6. Expensive murabaha pricing

7. Absence of other financing products other than murabaha

8. Cannibalization with conventional wing

9. Silo effect. The Silo Effect refers to a lack of information flowing between groups or parts
of an organization. On a farm, silos prevent different grains from mixing. In an
organization, the Silo Effect limits the interactions between members of different
branches of the company, thus leading to reduced productivity.

10. Weak Ex management voice

11. Lack of SAC members having banking business knowledge

12. Lack of trained man power on sharia related matter

13. Lack of participatory financing product

14. Absence of SME financing product

Reasons

1. Policy issue
 Restriction on Bank’s investment on real asset not to exceed 10%
 Further NBE clarification directives not issued for more than seven years
 Weak legal framework
 Weak leasing framework
 Definition of window service
2. Absence of trained man power
3. Lack of customer awareness
4. Absence of sharia compliant CBS