Abstract:
Background: The CBE is the largest bank of Ethiopia it had about 1.1 Trillion birr in assets and held approximately 67% of deposits and about 33% of all bank loans in the country. Cash management is a very broad subject and there are a lot of factors to consider when trying becoming more efficient. Which factors to consider depends on the company and type of industry.
Objective: To assessment cash management practice of Commercial bank of Ethiopia, 2023.
Methods: A descriptive research design was applied in the study using quantitative method. The populations of this study was employees of District and selected Eleven Commercial bank of Ethiopia in Jimma town. The 86 respondents was selected from each bank on proportion basis, since the number of employees in each bank is not the same. Data was collected from both primary and secondary sources by using questionnaire. The data was presented in form of Tables and Charts. Qualitative data was analyzed by schematization and quantitative data analysis was done by using frequency distribution and percentages.
Results: Out of 90 questionnaires distributed to employees of CBE, 86(95.5%) of the respondents were able to cooperate in filling the questionnaire, which made the response rate of the study 95.5%. The predominant reasons of cash holding are transaction 53.5%, followed by speculative 41.86%. Regarding cash management techniques used in CBE; Floatation 39.5%, synchronizing cash flow 33.7%, acceleration Collection 24.4% and 2.3% are others.
Conclusion: On the basis of the findings of this research it can be concluded that the cash management of commercial bank of Ethiopia makes a good effort to manage its cash appropriately.
Recommendation: The cash management of the bank should control of cash receipt to assure that all cash that receivable collected & recorded without loss
