| Abstract: | This study was conducted at headquarter of ZamZam Bank S.C. to explore the challenges and
opportunities associated with enforcing a completely interest-free banking system. The research
design used was descriptive research design and the research approach employed was
quantitative and triangulated as qualitative. Quantitative research approach was appropriately
used in the study because; mainly primary data was used and collected through questionnaire
from headquarter of zamzam bank. Data were collected from an aggregate of 190 repliers using
structured questionnaires which were given to headquarter of ZamZam Bank employee and
stakeholders who were apprehensive of the interest-free banking operation. The findings showed
that, lack of IFB operation specialists, lack of client mindfulness of IFB services, and the
necessity for special legislation were the primary problems facing IFB. On the other hand, IFB
providers who would use customer awareness of IFB services and the necessity for special
legislation were the primary problems facing IFB. Meanwhile, IFB providers who would use
customer satisfaction as their area of competence in providing IFB services were thought to still
have a significant untapped market in Ethiopia. Other possible chances were global trends,
Ethiopia’s economic expansion, and investment opportunities The findings suggest that the
advantages of interest-free banking exceed the downsides both at ZamZam Bank specifically and
throughout Ethiopia generally. Several recommendations were made in relation to the study's
findings; including that the profit authority should consider taxation issues regarding IFB
backing products, acceptable IFB products and services elevations to public, National Bank
should take some special considerations in policy making in regards to IFB operations and
adequate training campaigns should be undertaken by the Bank. |
