All EXam Data - Revised

DEVELOPMENT BANK OF ETHIOPIA
Examination Data Handbook
MARCH, 2014
Preface
This examination handbook is prepared with objective of assisting employees of the Bank who
are preparing themselves to sit for examination. Employees who are preparing for examination
are observed to waste a lot of time in referring to a number of subject matter books to help
them answer questions. This situation has created confusion as examinees are not clear from
which part of the subject questions are prepared.
Most often, due to absence of
hint/guideline/ on the framework design of the questions, final results of examinees are not
satisfactory. In order to enhance transparency and reduce complaint and information
asymmetry of employees in the areas of the examination paper, this handbook is prepared to
fill in some of these gaps and make all staff members well aware of the nature of questions
prepared. In this regard, the Management of the Bank has given due consideration for the
preparation of the handbook. Thus, employees are expected to use the document as a model
for exam papers.
The contents of the handbook are drawn from previous examination papers including Banks
policy, procedure manuals and various sources related to other banking organizations
activities. The questions are also constructed to focus on the specific operations of the Bank,
and to include questions regarding the theoretical and general knowledge of the employee as
well. Furthermore, the questions are orderly arranged to suit Job family and positions of
employees such as Officer, Sr. Officer and Principal Officer in each respective Process. Thus,
categorization of question by job family supports examinees to easily focus on the questions
part which they are required to pay more attention.
Employees are expected to look at the nature of each question in the handbook and try to
construct their own answers carefully. More importantly, answers should be relevant,
accurate, and clear.
The following sample questions and answers may help as a hint:
What are the characteristics of high quality data?
Clear(precise and unambiguous)
Relevant(appropriate to the subject at hand)
Economic(available at reasonable cost)
Adequate(provides an adequate base to asses performance)
Objective/Verifiable (allows independent validation)
What do you understand by poor service delivery and customer handling?
Mistreatment of customers ( nagging and harassment);

Availability and enforceability of institutional /individual code of ethics;
Lack of clarity in communicating checklist and promotion of services;
Lack of transparency , disclosing service cycle time and standards;
Lack of document screening skills and asking requirement now and then, leading
to back and forth delay, and complaint by customers;
Lack of complaint lodging and management system or lack of feedback system.
What is management information system? Explain.
Management information system (MIS) deals with providing information for the
managerial activities/decision in an organization at all levels. In other words, MIS
provides accurate, objective, complete and timely information necessary to
facilitate the decision making process and enable the organizations planning,
control, evaluation and operational functions to be carried out efficiently and
effectively.
In the course of reading the handbook employees will be aware of the Banks policy,
procedures and the opportunity to understand the activities of other processes
This handbook shall be updated every year by HRM Process as needed.
Regards,
Examination Preparation and Evaluation Team
Credit /Research/Risk/Approval /Appraisal

/Planning/Rehabilitation
PRINCIPAL/SENIOR OFFICER
1. In financing projects the banks policy requires to support priority areas of the
government. What do you think the rationale behind the policy? (Principal & Sr.
Officer)
2. A company must decide whether to introduce a new product line. The new product
will have startup costs, operational costs, and incoming cash flows over six years. This
project will have an immediate (t=0) cash outflow of $100.000(which might include
machinery, and employee training costs). Other cash outflows for years 1-6 are
expected to be $5,000 per year. Cash inflows are expected to be $30,000 each for
years 1-6. All cash flows are after tax, and there are no cash flows expected after year
6. Calculate the present value for each years and what would be your decision to
invest on product line?(Sr. & Principal Officer)
3. What do you understand by money laundering and terrorism finance and what are the
impacts in development of an economy? As part of your routine work as a senior loan
officer what would be your role to tackle such problem in DBE, explain with examples
or cases.(Sr & principal officer)
4. Loan structuring is one of the resolution mechanisms to rehabilitate problem loans.
What do you understand by loan restructuring and what are the ultimate impact of
such measure on Banks balance sheet and income statement? Sr.& Principal officer)
5. Why do banks participate in co-financing or syndicate financing? Explain the rational
behind it?(Sr. & Principal Officer)
6. Why do projects fail? Explain briefly the underlying reasons. (Sr. & principal officer)
7. The Development Bank of Ethiopia while preparing its strategic plan, it considers both
internal and external environment analysis. Please explain the factors involved in both
analysis.(Sr. & principal officer)
8. What do you understand by the term Policy (Sr.and Principal Officers)
9. What is a mission statement?( Sr. and Principal Officers)
10. What are the major differences between financial analysis and economic analysis? (Sr.
& principal officer)
11. List and describe early warning indicators of credit risk in the context of DBE.(Sr. &
principal officer)
12. What is value chain? Explain value chain importance and application in DBE
context.(Sr. & principal officer)
13. The default rate of loans is calculated in compliance with the NBE directives.
According to that directive under what events does the borrower declared defaulter
and what actions are taken by the bank?(Sr. & Principal officer)
14. Impact evaluation is the last step in project cycle and asses the outcome of the
project. Please explain what methods are you following suppose you are assigned to
evaluate the impact of a given project? (Sr. & principal Officer)
15. Project implementation success has been defined in many ways to include a large
variety of criteria. In simplest terms explain at least four basic facts that show success
in DBE context. (Sr. & Principal Officer)
16. Explain the major issues involved in the Directives on Asset Classification and
Provisioning for Development finance Institutions.(sr.& Principal officer)
17. Do we have a monitoring mechanism to control the diversion of Loan Fund from
project activities and not diverted to illegal activities? If yes , please explain. (Sr.. &
principal officer)
18. Projections are made on facts, rather on assumptions. Projection, therefore, are valid
when assumptions are correct and critically looked at. What questions need to be
raised with regard to assumptions from internal side and external side?(Sr. & principal
officer)
19. DBEs capacity determination usually starts from 70% in Year 1, 80% in year 2 and 95
% there after. Its cost of capital is 8.5%. The optimistic projects usually results in IRR of
% & 70 % and as a result projects found to be viable and highly profitable , hence
qualify for the loan to be approved. Nonetheless, it clearly conflict with the very high
level of non-performing loans of the bank.
Required: What could be the possible rationales that attribute for the status of the
non-performing loan?(Sr. & principal officer)
20. Completion risk or Implementation delay of projects & the worst fear for all lenders
in that projects may not be completed as planned ,and end up with an incomplete
monster that may be impossible to liquidate(sell to somebody), while there is no
possibility to continue funding, for various reasons.
Required: These are monetary & technical reasons that cause project incomplete.
Please explain each of them. (Sr. & principal officer)
21. Please explain the consequences of under assessment of working capital.(Sr. &
principal officer)
22. Why is excess working capital has disastrous implication on business/ projects/(Sr.
&principal officer)
23. In the context of DBE working capital requirement are two types. Please explain?(Sr. &
principal officer)
24. The Bank uses various resolution mechanisms to treat sick projects in order to
rehabilitate and bring back on track. In so doing, projects would be returned to Credit
Process /Branches upon ensuring the proper recovery from sickness. Does loan
collection only ensure the full/proper recovery of projects from sickness, Argue. (Sr.&
principal officer)
25. What are the four perspectives of BSC which the bank has adopted? What are the core
concepts contained in each perspective?(sr. & principal officer
26. Why poverty has been a major concern of Ethiopia and what is the role of DBE in
poverty reduction effort of the Government?( principal officer)
27. What are the competencies of DBE? Please explain (principal officer)
28. What is the strategic mission of DBE ? How does this mission support the GTP of the
country?( Sr. and Principal Officer
22. What does team charter mean to you and other team members? How do you put in to
practice in your province of duties?( Sr. and Principal officer)
29. What do you think are the key qualities that make a successful service provider
.Discuss(Sr. and principal officer)
30. Project follow up is one of the major elements of credit administration. Please state
the types of project follow-up done in the bank and briefly explain respective
relevance at each stage of project development.(Principal)
31. The Basel Accord covers Credit Risk, Market Risk and Operational Risk. Please explain
about Basel accord. .(Principal)
32. Discus both the merit and demerits of project financing. .(Principal)
33. What is A PERT activity? .(Principal)
34. What is a Critical Path? .(Principal)
35. Even if project are well designed comprehensively planned, fully resourced and
meticulously executed will face challenges at any point in their life. What are the
effective methodologies applied to monitor when the projects performance deviates
significantly from its design and its plan? (Principal)
36. Discuss any four of the following: (Principal)
a) Resource management for sustainable Agriculture;
b) Diversification and intensification in Agriculture;
C) Short term and long term effects of agricultural mechanization
e) Impact of climate change on agriculture
37. Before finalizing a report and submitting to your team leader for what purpose are
you editing the document? (Principal)
38. What are the possible outcomes of project monitoring and follow up? (Principal)
39. Since 1992 the government has successfully implemented a series of reform programs
in order to transform the economy from command to market economy. What were
some of the short term economic stabilization and structural adjustment measures?
.(Principal)
40. What are the areas of investment reserved for domestic investors? (Principal)
41. What are the principal taxes currently in place? How much is their respective rates?
(Principal)
42. To encourage private investment and promote the inflow of foreign capital and
technology the government has granted incentives to promoters/investors. What are
some of the incentives being granted by the government? (Principal)
43. The Industrialization strategy of the government has clearly identified the priority
areas of the manufacturing sub-sector. What are the manufacturing opportunities
attractive to potential investors? Please provide 8 examples of products under each
sector. (Principal)
44. Loans may be deteriorated suddenly without warning. There are a number of key risk
factors that indicate (warns) a negative impact on individual project /credit and loan
portfolio as well. What are the major indicators that ought to be monitored?
.(Principal)
45. Agricultural sector is identified as one of the major priority development sector by the
government. Explain the major considerations that make agriculture at the heart of
economic activity in Ethiopia? .(Principal)
46. A number of important aspects must be considered in choosing a site for the
establishment of a farm, provided that the investment outlay shows profitable return.
Please describe the important aspects in site selection for your project. .(Principal)
47. What is customer complaint? How do you resolve? (Principal Officer)

48. Please explain the following: (Sr. and principal officer)
49. What is corruption? Explain (Principal)
50. Does corruption adversely affect growth? Discuss (principal)
51. List out all possible sources of corruption.(Sr. and principal Officer)
52. Please explain about gender equality and equity.(Sr. and Principal Officer)
53. DBE has conducted the BPR, BSC and has introduced to its working units and same are
implemented as per the redesigned work flow and BSC for planning & performance
measurement. (Sr. and Principal Officer)
54. Define BSC Explain the basic perspectives of the plan in BSC and their respective
objectives. (principal and Senior)
55. Discuss the use of implementing BSC in DBE for strategic planning. .(Sr. and Principal
Officer)
56. List down the types of moral theories and discuss them in detail.(Sr. and Principal
Officer)
57. What does Grand Renaissance Bond mean? Explain.( all officers, Sr. and Principal
Officers)
58. What is your expected role in developing an effective team?(Sr. and Principal Officer)
SENIOR OFFICER
1.0 Please explain what you understand by log frame? ( Sr.Officer)

2.0 State and discuss four methods of estimating costs in a proposed project. ( Sr.Officer)
3.0 Discuss the importance of NPV over all other tools of project analysis? ( Sr.Officer)
4.0 Discuss various factors that determine the volume of working capital of a business? (
(Sr.Officer)
5.0 What is operational Risk? ( Sr.Officer)
6.0 Please list some of the characteristics of a project? ( Sr.Officer)
7.0 What are the components of project monitoring & Evaluation design? ( Sr.Officer
8.0 Suppose you are assigned to monitor the progress of bank financed projects, what are
some of the pertinent questions you may ask while you are undertaking your assignment?
( Sr.Officer)
9.0 Please explain the differences among project monitoring, evaluation and project control. (
(Sr.Officer)
10.0
One of the values of DBE is to be customer focused. How do you relate this with code
of Ethics of DBE?
11.0
What are the key areas of focus in conducting follow up of projects? ( Sr.Officer)
12.0
What are some of the internal factors which disrupts projects? ( Sr.Officer)
13.0
What are some external factors which disrupts projects? ( Sr.Officer)
14.0
The drip irrigation system can be divided into three distinct areas. Please explain each
of the areas under the drip system. ( Sr.Officer)

15.0
What are the characteristics of high quality data? ( Sr.Officer)
16.0
What do you understand by poor service delivery and customer handling? ( Sr.Officer)
17.0
While examining the environmental impacts of projects, what are the key issues that
we are required to know? ( Sr.Officer)

18.0
Please explain at what level do we analyze the opportunity and threat of a given
project? ( Sr.Officer
19.0
What are the main types of risk that banks may be exposed to ? Please provide brief
explanation for each of them. ( Sr.Officer)

20.0
Project risk may be categorized into a) Management risk b)Market risk c) technical risk
d)financial risk e) environmental risk f) legal risk. Please therefore briefly explain what
aspects of risk involve in each category of risk. ( Sr.Officer)
21.0
Suppose a project has a negative cash flow, while its IRR and NPV are acceptable and
is profitable in terms of the Net Profit figure, in such instances what alternative /options
do you consider to improve its liquidity position? please try to mention 8 options:
( Sr.Officer)
22.0
What are the possible scientific and practical definitions of agriculture? ( Sr.Officer)
23.0
Please explain about cash, subsistence, industrial, cereal and pulse crops with
example. ( Sr.Officer)
24.0
Suppose you are studying market for raw materials inputs for your factory, what are
the key issues you may consider in your assessment? ( Sr.Officer)

25.0
In a development bank financing high scale agricultural projects, what do you expect
the duties and responsibilities of an agricultural engineer would be? ( Sr.Officer)

26.0
Pest and diseases are very important in crop production in general on one hand and
they can pose serious problem to farmers on the other. They can reduce yield and quality
of produce and as a result fetch low price. Use of chemicals to fight the disease and pests
are last resort we employ. So what husbandry practices are necessary to combat the
problem? ( Sr.Officer)
27.0
Explain in detail the basic farm operations, from farm land development to harvesting
, in the production of long years staying permanent tree fruits such as orange, mango,
guavaetc. ( Sr.Officer)
28.0
DBE is financing projects from priority area of the government. In identification of
these projects a) what are the economic benefits considered? B) List down the criterion
set out for a project to be in priority areas. ( Sr.Officer)
29.0
There are different ways of irrigation and delivery of appropriate amount of water to
plants and vegetations on farms.(Sr. Agr.Engineer)

a) What are the different types of irrigation systems?
b) Discuss the merits and demerits of each irrigation system
c) What are the basics variables (core points) to be considered in the selection
appropriate irrigation system for a farm?
30.0
Describe the commonly known tractor implements in intensive agriculture; and
explain the mode of operations and purposes of each implement.(Sr. Agr.Engineer)

31.0
In Ethiopia rural Households keep dairy cows as mixed farming practices, however, in
the case of commercial dairy farm, the management is different from that of the rural
household. List down the resources required to establish a modern dairy farm project. (Sr.
Officer, animal science)
32.0
What are the constraints in running and managing of a dairy farm project currently in
Ethiopia? Discuss the risks and mitigating factors in a dairy farm business. (Sr.officer
animal science)
33.0
Poultry birds are important food sources for their eggs and meat. What are the
required resources to begin a poultry farm project? (Sr.Officer, animal science)

34.0
Discuss on the challenges of poultry farm business, the risks as well as the mitigation
mechanisms. (Sr. officer, animal science)

35.0
Dairy cattle herd projection is one component of a dairy farm project proposal.
Discuss its significance in terms of cost, income etc (Sr. Officer animal science)
36.0
Mention and issues some of the prevalent cattle & poultry diseases in Ethiopia.(Sr.
Officer animal science)

37.0
Please list down some of the facilities in building and construction part of a dairy farm.
(Sr.officer, animal science)

38.0
There are several stages in processing raw milk for market. Please list down some of
the processes.(Sr. officer ,animal science)

39.0
Suppose you have an initial 10 in calf heifers of 7 months pregnant, what will be the
herd size on the third year? (Sr.officer, animal science)

40.0
Meat is the most significant product from abattoir by weight and also in monetary.
Please list down the most useful by products available from abattoir and explain their
usage.(Sr.officer, animal science)
41.0
Suppose you are a manager for a Tannery, how do you manage effluent out of the
factory, which may pollute the environment, and what are the known types of waste
products out of tanneries.(Sr. officer, animal science)
42.0
Please write a short essay of 150 words about you experience in animal husbandry.
(Sr.Officer , animal science)

43.0
Explain the factors that need to be considered to show the availability of raw material
for production of a certain commodity.(Sr. Officer)

44.0
As a candidate for Sr. Project Rehabilitation officer and Loan Recovery Officer, what
duties and responsibilities do you assume? And what type of skills should you acquire?
(Sr. officer)
45.0
Company X is financed by DB and now categorized as an NPL. Classify the following
information as NPL. Classify the following information as the internal, borrowers and
external causes of the NPL by ticking(Sr.Officer)
S.N
Description
Internal
Borrowers
related
Performing over invoicing
Poor follow up
Export ban
Ignoring the early signs of NPLs
Diversion of loan
Political unrest
Dynamic
technological
obsolescence
h
Use of other Banks LC facility
Overfilling
of
credit
beyond
requirements
j
Submission of misleading business

plan
Over swelling of unrealistic cash

flow while appraising
Inappropriate relation with credit

officers
Low lending interest rate set by

the government
External
Global economic crisis
Focusing
on
post
loan
disbursement action
46.0
When do we say the loan has become an NPL? State NPLs classification of NBE.
What are the negative effects of NPLs on the Bank and the stake holders at large?
(Sr. officer)
47.0
If there is no enough provision expense held for an NPL project, then no write- off will
be done. Justify. (Sr. .officer)

48.0
Assume that a project can be rehabilitated. What are the possible resolution
mechanisms? And the problems related to these resolution mechanisms? (Sr. officer)
49.0
An NPL project doesnt qualify for rehabilitation. How do you treat it? Discuss in
detail. (Sr. officer)

50.0
What are the evidentiary requirements for write-off? Procedures for foreclosure?
(Sr. .officer)
51.0
In the construction industry, claims means, a demand by a contractor for extension of
time or for an extra payment of an item of work carried out by him for which an
identifiable amount cannot bee ascertained under the term of contract.
Suppose, you are assigned as a supervisor of construction project of DBE, enumerate
at least 10 possible causes of claims situations, which form a base for claim
management (.Sr. officer)
52.0
Cost approach is one of the valuation principles adopted in real property valuation
manual of DBE, for the reason that specialized nature of properties financed by the bank.
List down the basic datas required in using cost approach and the steps to be gone in the
valuation process. (Sr. officer)
53.0
Depreciation is defined as any loss in value from the original construction cost. Define
the three categories or types of depreciation, and give example of each.(Sr. officer)
54.0
In addition to the external risks associated with any construction there are risks
associated with the construction itself. Describe and enumerate the major risks and
explain their mitigation measures. (Sr. officer)
55.0
Valuers should at all times maintain a high standard of honesty and integrity and
conduct their activities in a manner not harmful to their clients, the public and their
profession. List down the basic ethical rules to be considered in the valuation process.
(Sr. officer)
56.0
There are three valuation techniques for valuing plant, machinery and equipment.
These are: Income Approach, Coast Approach, and Market Approach. Discuss each
method strengths and weaknesses.(Sr. officer)
57.0
What factors are you considering to select the right pump for irrigation system?
(Sr. officer)
58.0
Discuss the variables to be considered in the selection of appropriate capacity of a
critical farm machine, tractor. Justify your variables by using them in the capacity
determination process by showing the basic steps.(Sr. officer)
59.0
All new and prospective borrowers are required to show at least 30% of the total
project cost. Suppose borrower for promoting strategic projects could not raise the
required contribution at once what action should the CP/Branches consider?(Sr. officer)
60.0
Explain pre-credit risk assessment and what are the major components? Explain from
DBE perspectives.(Sr. officer)

61.0
In financing projects the banks policy requires to support priority areas of the
government. What do you think the rationale behind the policy?(Principal & Sr. Officer)
62.0
Project implementation is one of the basic tasks in credit administration. Explain the
internal challenges affecting project implementation and what would be your role as a
senior officer to solve these problems? (Sr. Officer)
63.0
DBE sets customer focus as one of its core value central to its success toward
achieving its vision. What are the basic tenets of this value and explain at least five of
them. What is expected from you as a senior officer? (Sr. Officer)
64.0
What are the basic information required to develop the Banks annual plan and
budget? (Sr.Officer)
65.0
In project appraisal there are various techniques of building price for products. Discuss
in detail at least two techniques widely applied in DBE perspective.(Sr. officer)

66.0
Explain the importance of commodity study for core operational units . ( Sr. Officer)
67.0
Environmental impact assessment is a process for identifying the environmental
effects (positive or negative) of proposed developments before development consent is

granted. What are the aims of environmental impact assessment and the benefits? (Sr.
Officer)
68.0
One of the major challenges banking Industry is facing these days is money
laundering. What are some of the norms launched by banks to prevent money laundering
in general? (Sr .Officer)
69.0
What are the steps you follow while preparing a proposal for projects that are found
sick? Explain (Sr. Officer)

70.0
Can we ensure the success of a project by under taking exhaustive due diligence?
Discuss.(Sr. Officer)
71.0
What is the relevance of commodity report/study in the loan processing decision
making process?(Sr. officer)

72.0
Describe how loan portfolio concentration risk is managed by DBE?(Sr.officer)
73.0
Explain pre-credit risk assessment and what the major components are. Explain from
DBE perspectives. (Sr. officer)

74.0
Follow up is one of the critical milestones in DBEs credit administration practices. List
and explain at least five of the outcomes in conducting follow-up of projects.(Sr. Officer)
75.0
What do you understand by grace period? What the critical factors used to determine
a grace period, explain.(Sr. Officer)

76.0
Having sound KYC procedures have particular relevance to safety and soundness of
Banks. At least discuss two of the benefits of having such standard practices.(Sr. Officer)
77.0
In the mission of DBE it is stated that DBE promotes the National Development agenda
through development finance and close technical support to viable projects(Sr. Officer)
a) Mention and discuss at least three measures of viability of projects

computed based on the discounted cash flow in the financial study part of
the appraisal report.
b) A project appraisal with FIRR of 9%, 8% sensitivity test result on increasing
cost by 10% and & 7% sensitivity test result on decreasing revenue by 10%
computed on a discount rate of 12% is submitted. Do you approve or reject
the loan proposal?
b) If you approve the loan, why? Give reasons.
C) If you reject the loan, why? Give reasons
78.0
The supply of a commodity for the past five years is indicated in the table 1 below.
Table 1: Aggregate raw material supply
Years (G.C)
Supply (tons)
78.1
2007
78.2
15
78.3
2008
78.4
10
78.5
2009
78.6
15
78.7
2010
78.8
25
78.9
2011
78.10
20
Calculate Average Annual Growth Rate using arithmetic and geometric method
Which method estimate better? Why?(Sr. Officer)

79.0
Assume that DBEs client has raised upfront equity conformation in cash upon the
approval of its loan. As a credit officer , what questions you are required to raise as to the
cash equity contribution?(Sr. Officer)
80.0
What are some of the requirements to finance rain fed commercial crop
production?(Sr. Officer)
81.0
The following project is evaluated by an enterprise with an approved target
accounting rate of return of 20%. (Sr. Officer)

Fixed asset purchase cost
Br85, 000.-
Estimated life
4years
Expected profits (before depreciation deductions)

Year 1
20,000
Year 2
35,000
Year 3
30,000
Year 4
35,000
Amount to be recovered from

The project at the end of 4th year17,000
Annual Depreciation17,000
By using accounting rate of return method you are required to assess the
following for investment project planned;
1. Average annual profits
2. Average investment
3. ARR
a) Average Profit =
b. Average Investment=
c. ARR=
82.0
What are the expected economic benefits considered for priority area projects?
(Sr. Officer)
83.0
In order to entertain working capital loan for projects under distress what are the
procedures to be considered by the bank? (Sr. Officer)

84.0
What do you understand by the term bureaucracy. (Sr Officer)
85.0
What is strategy and strategic planning? (Sr. Officer)
86.0
What do you understand by the term negligence of Duty?(Sr. Officer)
87.0
List down the thematic areas of DBE with their strategic results.(sr. Officer)
88.0
Describe SWOT analysis Model and explain its importance.(Sr. officer)
89.0
Please explain what factors affect working capital need? (Sr. officer)
90.0
DBE financed projects are said to be risk prone. Please explain the notion of this statement.
(Sr. Officer)
91.0
While analyzing the market and marketing conditions of a project what are the main content
that supports your analysis? (Sr. Officer)
92.0
What is Par Value?(Sr. Officer)
OFFICER LEVEL
1) In the due diligence assessment work, DBE requires so many legal compliances from
loan applicants. List at least five and discuss the importance of these documents.
2) There is no single best technique that is appropriate to get information source while
appraising a project. Please list out and explain the most common technique used to
collect data in order to appraise projects.(Officer)
3) Enumerate the process of project cycle and relate it with a particular project. (Officer)
4) Compare and contrast between profitability and liquidity ratio..(Officer)
5) Differentiate between cash inflow and cash outflow and discuss the benefits derived
from cash flow analysis. .(Officer)
6) Discuss the benefits of Cost Benefit analysis. .(Officer)
7) What is return on investment? (Officer)
8) What is a capital gain?(Officer)
9) Please explain the term integrity in the context of banking industry.(officer
11) Please explain a market economy. (Officer)
12) What is capital?(Officer)
13) Please explain what you understand by the term economics of Scale (officer)
14) What is return on equity? (Officer)
15) Please explain about depreciation. (Officer)
16) What is a premium? (Officer)
17) Please explain by what you understand by the term synergy (Officer)
18) List down the Banks major stake holders and their expectation.(Officer)
19) Define and explain the purpose of Balance Score Card in the DBEs context(Officer)
20) Discuss and explain the main duties and responsibilities of your process.(officer)
21) One of the values of DBE is learning organization. Describe what does it mean and
discuss how existence of library in the bank contributing.(officer)
22) What are the expected ethics in library, and in using library materials(officer)
23) In what aspects the library of DBE is benefiting its staff and any other users of the
library?(officer)
24) What are the major duties and responsibilities of a librarian generally; and which of
these are peculiar to a Librarian in DBE?(officer)
25) What are the descriptions given on each slips of a book catalogue?(officer)
26) Reflect critically on the Banks Vision, Mission and values.(officer)
27) Discuss on how you can contribute to the best of your ability, both individually and as
part of a team.(officer)
28) The bank vision states that it will attain100% success for all project by 2020. What do
you understand by this statement( officer)
29) Out of the twelve principles of ethics list out 6 of them and explain how you apply them
while discharging your duties and responsibilities.(Officer)
30) Explain at least five of the employees code of ethics of DBE. What does it mean to
you?(officer)
31) What are the basic similarities between BPR and BSC?(officer)
32) What are some of the purposes of the bank establishment as financial
institution?(Officer)
33) What do you understand by breakeven analysis? .(Officer)
34) Discuss the merit and demerit of break even analysis in project financing. .(Officer)
35) What is the difference between project control and project monitoring? .(Officer)
36) Compare and contrast between project planning and project control. .(Officer)
37) What is a project? Please define. (Officer)
38) What are the components of project cycle and Please show diagrammatically phases of
project cycle? (Officer)
39) What is project monitoring? (Officer)
40) What is project Evaluation and its aim? (Officer)
41) Explain the four types of project evaluation. (Officer)
42) What are the uses of evaluation? (Officer)
43) While conducting research in the bank what types data are you gathering? Please
explain each of them. (Officer)
44) What is the role Credit Risk and compliant management? (Officer)
45) What are the roles of Research Process? (Officer)
46) What are the roles of Internal Audit? (Officer)
47) What is financial statement analysis? (Officer)
48) Why financial analysis is important? (Officer)
49) To obtain loan an investor is required to submit several documents. Please list down all
documents required by DBE either new or expansion projects. (Officer)
50) One of DBE financed projects is Cement manufacturing. What are the essential properties of
cement? (Officer)
51) What are the known classification and types of Cement? (Officer)
52) What are the raw materials for cement making and other inputs required? (Officer)
53) In project appraisal report preparation, product market and price analysis are an
integral part of the project assessment. What are the main topics you are expected to
address in this section? (Officer)
54) What do you understand about horticulture and its main branches? (Officer)
55) In project appraisal report you are writing about the organization and management part
of the proposal. What are the main topics you are expected to address? (Officer)
56) Suppose you are preparing the financial analysis part of an industrial project, what are
the basics in determination of the financial outlay of the project? (Officer)
57) You are planning to establish a processing plant in Addis Ababa and you have prepared
feasibility study of the project. Among many issues to be addressed in your feasibility
study, the financial statements part are very important, and are to be carefully
analyzed. Please list down and explain those essential statements in their natural order.
(Officer)
58) What are the discounted measures of project worth? (Officer)
59) What are the non discounted measures of project worth? (Officer)
60) What are the methods of ratio analysis in examining the financial performance of
company? (Officer)
61) Please list down some of the crops that that are known as Industrial crops. (Officer)
62) What are the final products of a typical poultry farm?(Officer, animal Science)
63) What are some of the machineries, accessories and equipment being used in a poultry
farm? (Officer, animal science)
64) List down the livestock Animals that are reared for food sources in Ethiopia by
categorizing as :(animal science, officer)
At rural household level
At small, medium and large scale commercial level
65) Discuss the benefits of raw milk processing to different products and mention the
processed products of raw milk.(Officer, animal science)
66) What are the short term method of preserving hide and skins? Please explain each of
them.(officer, animal science)
67) Ato Taye has a cattle fattening lot in Adama. Suppose you are a farm manager, how do
you formulate daily ration mix under shed ( Oxen live weight about 250kg.(Officer,
animal science)
68) What does the technical study part of project appraisal contain? (Officer)
69) Customer focus is one of the values of DBE, hence list out the customers for your
applied process and discuss how to focus to these customers.(Officer)
70) Please explain the following terms:(Officer)
a) Ownership risk
b) Management risk
c) Business Risk
d) Liquidity risk
e) Solvency risk
71) Discuss the PRLR units work flow. (Officer)
72) Describe briefly the following:(Officer)
Techniques of researching ground water
Crop management in saline water
Managing crop production on black soil/vertisol/
73) The purpose of approving loan in three levels is to maintain the check and balance in
the work flow, to ensure the appraisal quality and minimize the risk of project failure &
loan default by the customer. Discuss the main issues that must be checked at each
level.(Officer)
74) What are some of the documents required by applicants as means of evidence for
equity source?(Officer)
75) Explain the reasons why the Bank always requires equity contribution from the project
owner.(Officer)
76) Discuss and explain the main duties and responsibilities of loan officers./Credit
process/Branch-Appraisal sub-Process/ Regional Appraisal Team/ Project Rehabilitation
and loan recovery Sub-Process/Region PRLR Team (Officer)
77) List and explain the basic elements of working capital. (Officer)
78) What do you understand by sensitivity analysis in project appraisal? What is the
relevance of understanding this exercise in project analysis, and explain steps involved.
(Officer)
79) Why ratio analysis is important?(Officer)
80) How do you arrive at financial internal rate of return in project appraisal? Please explain
the steps involved. (Officer)
81) What is project financing? Explain explicitly the major differences between project
financing and commercial (short term) financing. (Officer)
82) What are the purposes DBE is established?(Officer)
83) What are the key sections of project proposal contains? (Officer)
84) Environmentally friendly is one of the Banks values. What does it mean?(Officer)
85) Differentiate between applied research and basic research; which type research is
applicable for DBE? Why?(Officer)
86) Why monitoring and evaluation are considered important as integral part of
planning?(Officer)
87)
Project monitoring system should be in place before project start-up and should be
scheduled on the project plan. Suppose you are a project planning officer what does
your report contains?(Officer)
88) Explain the importance of considering environmental issues in project appraisal, and
give some examples. (Officer)
89) What is business risk? What are the possible sources of business risk?(officer)
90) Explain risk management.(Officer)
91) What is the maximum period for customer to respond after notice before bank
considers foreclosure action?( Officer)
92) Explain why future benefits of a project are discounted.(Officer)
93) What do you understand by the term liquidity analysis? Please explain how do you
manage it.(Officer)
94) Explain about profitability analysis.(Officer)
95) Write down the major stretch objectives of the banks core process?(Officer)
96) What is the difference between core and support process?(Officer)
97) What are the major functions of appraisal team in the Bank?(Officer)
98) Explain at least five possible mitigation measures to rehabilitate sick loans?(Officer)
99) As per the banks credit policy what are the symptoms for project being considered sick?
How is the bank intervening to redeem sick projects?(Officer)
100) Explain the factors that need to be considered to show the availability of raw material
for production of a certain commodity.(Officer)
101) Explain the rationale behind why depreciation is excluded from cash flow
analysis.(Officer)
102) Why do Banks held provisions against loans granted? Explain the main
purpose.(Officer)
103) Customer focus is one of the values of DBE, hence list out the customers for your
applied process and discuss how to focus to these customers. (Officers)
104) When and why a suspense account or memo account could be maintained?(Officer)
105) Explain the factors that need to be considered to show the availability of raw material
for production of a certain commodity.(Officer)
106) Please explain how the bank selects and recruits customers?(Officer)
107) How is DBE contributing to The GTP?(Officer)
108) What is the minimum commercial farm size to finance the following crops as per
Credit Policy? (all officers)
Fruits
Vegetables
Cereals
109) What is meant project rehabilitation in DBE context? And what are the mechanisms by
which DBE rehabilitates financed projects? (officer)
110) For what purpose that every manufacturing business needs adequate working
capital?(Officer)
111) What are the current interest rates for priority and non priority areas and the
modality of loan repayment? (officer)
Finance/Fund/International Banking/Audit
I. PRINCIPAL OFFICER/ SENIOR OFFICER

1) What is the importance of establishing Central Credit Reference (information)
System/Data Base online? Explain.(sr. & principal officer)
2) The National Bank Of Ethiopia has launched new soft ware called Credit Reference
System(CRS) for all banks to support prudent lending decisions.(Sr. & principal officer)
a) Discuss the basic functions of this software.
b) What is the name of the work unit established under the National Bank of
Ethiopia to carryout duties and responsibilities related CRS?
3) Distinguish between Treasury Bills, Grand Renaissance Dam Bond, Ethiopian Government
Bonds, and NBE Priority Sector Loan. (sr. & principal officer)
4) What is the importance of instituting effective anti-money laundering (AML) and
combating the financing of terrorism (CFT) regimes in the context of Ethiopia, and how do
you identify suspicious accounts/transactions. Discuss.(sr. & principal officer)
5) Assume that the following income statement on line branch offices of DBE ,including head
office , for the fiscal year ended June 30,2013 ,is extracted from T24 CORE banking
system. It is also assumed that all branch offices are connected online to each other.(sr. &
principal officer)
Table I
Profit and Loss Statement
For the Fiscal Year Ended June 30, 2013
Income
Balance
(Birr000)
Interest income earned (see appendix: Table 2)
1,371,476
Gain on Currency fluctuation &dealing
105,758
Service charges & commission earned
129, 542
Other income (assume that divided income of Birr 1 million is
29,968
included, among others.

Total Income (see appendix :Table 2)
1,636,744
Expenses
Employees salary
53,584
Employees Benefit
36,964
Interest Charges
715,685
Depreciation Expense
23,024
General Expense (assume that entertainment expense , Birr

0.7million,donation expense,Birr1 million; and T24 and AWIFT
annual maintenanceexpense,Birr2million,are included, among
others)
Loss on Currency fluctuation
120,033
Total Expense
949,290
Operating income/loss before tax
687,454
Provision for doubtful loans and other assets

Net Income(loss) before Tax
90,511
596,943
Table 2
Appendix: Income Breakdown
For the Fiscal Year Ended June 2013
Account
Balance
(Birr)
I. Interest Income earned(Total)
1,371,476
1.1 Foreign
Time & certificate deposit
Bonds
Deposit
1.2 Domestic
Loans and Advance
1,127,070
Treasury Bills
143,864
Government Bonds
100,000
II. Discount Earned
Domestic Banks
141
Foreign Banks
401
III. Service Charges/Commission earned (total)
129,542
Commission and charges-foreign
43,243
Service charges on Co-Finance
Commission and charges-Local
500
Commission on Insurance
282
Service charges on foreign currency
85,517
Managed Fund
Others
Iv. Other Income total
Rental Income
29,968
6,711
Gain on sale of stock items

Gain or Loss of Fixed assets
Other Income
Gain on Currency Fluctuation & Dealing (Total)
213
23,044
105,758
Gain on foreign dealings
57,645
Gain on Currency fluctuation
48,113
Total Income Earned
1,636,744
Instruction
Calculate how much the business profit tax DBE would be expected to pay. Suppose that
Birr10million has been with help from the various income of DBE by its service users from
July 1, 2012 to June 2013. Show clearly tax computation. When was DBE expected to
settle its business income tax?
6) How does the NBE control inflationary pressure in the country?(Principal officer)
7) Discuss the issues to be considered to institute effective internal control system and
practices. (Sr. & principal officer)
8) What do you understand by the term Policy (Sr.and Principal Officers)
9) What is a mission statement?( Sr. and Principal Officers)

10) Discuss the issues to be considered to institute effective internal control system and
practices. ( Sr.& principal officer)
11) Discuss professionally on How to : 1) issues a letter of credit in the context of DBE;
2)handle or follow-up the subsequent tasks/activities involved until the L/C file is
closed;3) deal with the issues and challenges you face from end to end process: and 4)
treat the accounting entries to be passed from beginning to end .(Sr. & principal officer)
12) The National Bank of Ethiopia has launched new software called Credit Reference System
(CRS) for all banks to support prudent lending decisions .
Discuss the basic functions of this software.(Sr. & principal officer)
13) What are the major objectives of submitting weekly report on cash transaction above Birr
two hundred thousand and suspicious cash transactions of any amount to the Finance
Intelligence Center of the Federal Democratic Republic Of Ethiopia. Discuss.(Sr. & principal
officer)
14) Reflect on the accounting process to be pursued in the case of DBE for Grand Renaissance
Dam Bond payable, Employees contribution for Grand Renaissance Dam project and
donation with a view to ensuring the integrity, reliability, completeness and timeliness of
providing financial information.(Sr. & principal officer)
15) What are the four perspectives of BSC which the bank has adopted? What are the core
16) What does team charter mean to you and other team members? How do you put in to
practice in your province of duties? (sr. & principal officer)
17) What do you think are the key qualities that make a successful service provider
18) What is customer complaint? How do you resolve? (Principal Officer)
19) Please explain the following: (Sr. and principal officer)
What is corruption? Explain

Does corruption adversely affect growth? Discuss
20) List out all possible sources of corruption.(Sr. and principal Officer)
21) Please explain about gender equality and equity.(Sr. and Principal Officer)
22) DBE has conducted the BPR, BSC and has introduced to its working units and same are
a. Define BSC
b. Explain the basic perspectives of the plan in BSC and their respective
objectives.
c. Discuss the use of implementing BSC in DBE for strategic planning.
23) List down the types of moral theories and discuss them in detail.(Sr. and Principal Officer)
24) What does Grand Renaissance Bond mean? Explain.( all officers, Sr. and Principal Officers)
25)
What is your expected role in developing an effective team?(Sr. and Principal Officer)
II SENIOR OFFICER
1) Explain the importance and limitation of using Data Capture Application. Also enumerate
the relevant items to be included in Data Capture module before processing any
accounting transaction.(Sr. Officer)
2) What is management information system? Explain. (Sr. Officer)
3) Discuss the role of DBE in the bond mobilization campaign being implemented in the
country on large scale. (Sr. Officer)
4) Prepare a full-fledged and easily understandable checklist to be applied for checking
application package for import letter of credit.(Sr. Officer)
5) Why is segregation of duties important between loan and credit information provision?
(Sr. Officer)
6) Explain the main debt instrument used in raising funds/money in the case of
Development Bank of Ethiopia.(Sr. officer)
7) Explain the main objectives of implementing T24 CORE Banking Procedure Manual for
DBE. Illustrate The Business cases?(Sr. officer)
8) Discuss the roles of Fund Management Process vis--vis those of Finance and Accounts
Management Process and International banking. (Sr. Officer)
9) What is meant by qualified opinion in any audit report? Discuss.(Sr. officer)
10) What is unqualified or clear opinion in any audit report?(Sr. officer)
11) Discuss and explain the main types of taxes applicable in Ethiopia, especially with
reference to Development Bank Of Ethiopia. Please discuss frequency tax payment.(Sr.
Officer)
12) What is financial audit Vs. performance audit?(Sr. Officer)
13) Explain the difference between customer accounts, internal accounts and contracts under
T24 CORE banking system.(Sr. Officer)
14) What is the financial and accounting and reporting framework adopted in T-24 Core
banking system? Illustrate some practical example.(Sr. Officer)
15) What is Treasury bill (T-bill)? Explain its definition and significance(Sr. officer)
16) Prepare a full fledged and easily understandable check list to be applied for checking
application package for import letter of credit.(Sr. Officer)
17) Explain the module to be used in T-24 and steps to be followed in capturing and steps to
be followed to ensure the financial and quality and integrity of renaissance dam bond
payable?(Sr. officer)
18) Why is segregation of duties important between loan accounting and credit information
provision?
(Sr. Officer)
19) Discuss the three types of accounting entries generated /raised under T24 Core Banking
system in the case of DBE.(Sr. officer)
20) What are the key activities that operational audit performs?(Sr. Officer)
21) What is the state of dividend payable? Discuss it in the context of Ethiopia. (Sr officer)
22) Explain the main debt instruments used in raising funds/money in the case of
Development Bank of Ethiopia.(Sr. Officer)
23) What is the state of dividend payable? Discuss it in the context of Ethiopia.(sr. officer)
24) What is international Trade? Explain its significance. (Sr. officer)
25) What are the different types of audit opinion? Explain.(Sr .officer)
26) Discuss the main roles of senior accountant at DBE.(Sr. Officer)
27) One of the values of DBE is to be customer focused. How do you relate this with code of
Ethics of DBE? (Sr Officer
28) Assume that the income statement of DBE for the fiscal year ended June 30,2013 is shown
as follows: (Sr. officer)
29) List down the main parties involved in letter of credit and then explain their roles.(Sr.
officer)
30) Compare and contrast between disclaimer audit option and adverse audit options.(Sr.
Officer)
31) Explain clearly the T24 technical architecture implemented in the Bank, and the
interaction between different layers. (Sr. officer)
32) Discuss the major concepts and issues revolving around T24 Financial Accounting and
Reporting Framework adopted at DBE, specifically with regard to: (1) Value-dated
accounting and trade-dated accounting; (2) the types of accounting entries generated, (3)
account and contract balances, (4) category, (5) the major financial reports generated, (6)
consolidation key, and (7) clearing mismatches.(Sr. Officer)
33) Discuss on how to issue/open an import Letter of Credit (LC) in the context of DBE , using
T24 Core Banking system, including accounting entries using T24 Core banking system. (Sr.
Officer)
34) Suppose that on July 01, 2012 DBE sold Renaissance Dam Bond to CBE amounting to Birr
20 million. The bond is expected to be redeemed on January 01, 2018.
Instruction:
Illustrate all the accounting entries that will be passed commencing from issuance up
to redemption.
Explain the type of module to be used in T24 and the steps to be followed in capturing
the bond borrowing at the time of bond issuance.(Sr. Officer)
35) Explain the main contents of external auditors report/(Sr. Officer)
36) What do you mean by a non-performing loan? As per NBE directive for DBE, what are the
criteria to classify loans to non-performing?(Sr. Officer)
37) What are the financial Accounting and reporting frame work adopted in T-24 Core
banking system? Illustrate some practical examples.(Sr. Officer)
38) Discuss the specific procedures you follow in maintaining an acceptable level of
receivables and payables (aged more than one year not exceeding 5%-10%).(Sr. Officer)
III. OFFICER
1) Explain clearly the two consolidation keys implemented in T24 CORE banking system in
the case of Development Bank of Ethiopia? (Officer)
2) Explain the module to be used in T-24 and the steps to be followed in capture the bond
borrowing/issuance on day. (Officer)
3) What is letter of credit (L/C) and cash against document (CAD)? Explain(Officer)
4) Discuss cash management and operation in the banking Industry.(Officer)
5) Discuss the roles and responsibilities of Customer Service Officer in the newly designed
and implemented Customers Account and transaction Service (CATS) Process at the
finance & Accounts Management Process?(Officer)
6) Explain the importance of internal control.(Officer)
7) What is return on investment? (Officer)
8) What is a capital gain?(Officer)
9) What is capital?(Officer)
10) What is Par Value?(Sr. Officer)
11) Please explain what you understand by the term economics of Scale (Officer)
12) What is return on equity? (Officer)
13) Please explain about depreciation. (Officer)
14) What is a premium? (Officer)
15) Define and explain the purpose of Balance Score Card in the DBEs context
16) Discuss and explain the main duties and responsibilities of your process.(Officer
17) Reflect critically on the Banks Vision, Mission and values.(Officer)
part of a team.(Officer)
19) The bank vision states that it will attain100% success for all project by 2020. What do
you understand by this statement( Officer)
20) Out of the twelve principles of ethics list out 6 of them and explain how you apply
them while discharging your duties and responsibilities.(Officer)
21) Explain at least five of the employees code of ethics of DBE. What does it mean to
you?(Officer)
22) What are the basic similarities between BPR and BSC?(Officer)
24) What are the primary products and services offered at international Banking Service
Process? Discuss(Officer)
25) Discuss and explain the major types of SWIFT messages used in import letter of credit
and fund transfer. (Officer)
26) What is legal reserve? Discuss in the context of Ethiopia.(Officer)
27) Discuss the advantages and disadvantages of commonly used payment methods in
import.(Officer)
28) Discuss and explain the main duties and responsibilities of Accounts Management and
Reconciliation team at the Finance and Accounts Management Process of DBE ?(any
other units under your process) (Officer)
29) Explain the rationale behind conducting due diligence or know-your customer
assessment before opening account. (Officer)
30) Explain the purpose of preparing balance sheet for any company.(Officer)
31) What is the difference between internal audit function and internal control system?
(Officer)
32) What is the name of the work unit established under the NBE to carry the duties and
responsibilities related with CRS? (Officer)
33) Explain and discuss the accounting cycle that DBE has to involve in during a fiscal year?
(Officer)
34) What is a letter of credit? Explain. (Officer)
35) What do you understand by the term core banking system?( Officer)
36) Discuss professionally on how to :
Issue/open an import letter of credit (L/C) in the context of DBE. (Officer)
Interest Income
Birr
Loans and deposits
700,000,000
Treasury Bills
100,000,000
Government Bonds
50,000,000
Foreign Bank deposit
40,000,000
Local Bank deposit
10,000,000
900,000,000
Less: Interest Expense
200,000,000
Net Interest Income
700,000,000
Non-Interest Income
100,000,000
Gross Profit
800,000,000
Less: Noninterest
expense
Provision Expense
100,000,000
Others
400,000,000
Net profit before Tax
300,000,000
Instruction
Compute the following, indicating clearly your calculation.
Tax expense on income from deposit
Corporate profit tax expense (excluding tax on income from deposit)
Net profit after tax.
Legal reserve.
37) What is cheque? Explain (Officer)

38) Grand Renaissance Dam Bonds are issued in different denominations. List down all
denominations from smallest to largest units. (Officer)
39) Explain the difference between saving account and current /demand account. (Officer)
40) Discuss the roles and responsibilities of customer service officer in the newly designed
and implemented customers account and transaction service (CATS) process at the
finance & accounts management process. (Officer)
41) Explain the difference between Teller (TT) module, Data Capture (DC) module and Fund
Transfer (FT) module. (Officer)
42) Discuss the measures and precautions to be taken in managing till and vault cash
operation. (Officer)
43) Suppose that a certain customer requests his/her bank deposit cash (both local and /or
foreign) after close of business hours (say, from 4:pm to 6pm) before you leave the
Bank? How do you entertain? (Officer)
44) Discuss the main modes of payment in International Trade. (Officer)
45) Discuss the pinpoint responsibilities of :
Customer Service Officer at Customers Account and Transaction Service (CATS) Team,
and an accountant at Finance and Accounts Management Process. Please also discuss
the strategies for achieving excellence in the domain of CATS operation across DBE.
(Officer)
46) Explain the difference between bin card and stock card(or store ledger).(Officer)
Human Resource Management /Property

Administration/ Change management/ Ethics
I. PRINCIPAL/ SENIOR OFFICER

1. Assume that the Banks HRMP has planned to hire additional manpower for the coming
budget year. State the steps that need to be followed to determine the required number
of additional manpower.(sr. & principal officer)
2. Employees are expected to act in a responsible manner and perform their duties as
expected. However, it is not uncommon to observe that some employees exhibit
unacceptable both intentional and/or unintentional behaviors that pollute the banks
workplace in particular and adversely affects its ultimate success at large. With this
regard, HRMP has the mandate to hold the employees accountable for violating the
standing rules of the Bank.
As and HRM officer, what basic disciplinary measures do you suggest? Mention at
least five common disciplinary misbehaviors.(sr. & principal officer)
3. Organizations most prized asset is their reputation. In line with this, DBE has strongly
been striving to improve the level of its image among the public which had been graded
as unsatisfactory. Among the efforts of the bank with this regard is ensuring as to the
existence of its operational or business ethics. Based on this , answer the following:
a) Why the bank worries about its business ethics? Just enumerate the points.
b) Ethics starts at the top. Leaders play the key role in developing the ethical
organization as they confront balancing between operational and profit goals
(Although DBE doesnt opt for profit) with corporate moral obligations and external
stakeholders.
With this regard, what are the possible roles of the leaders?(sr. & principal officer)
4. Fair employment practices refer to recruiting and treating employees on the basis of merit
such as skill, experience or ability to perform a job. Assume that an organization has the
practice of violating the law of land while it is accomplishing the task of employment.
Note that the employment task ranges from recruiting new employee to handling the
existing one.
What could the possible areas of violation be ? (Sr. & principal officer)
5. The HRM strategy is an important element of organizational success where every manger
is an HRM Manager. In the future the banks ability to attract, develop and retain a
talented work force will be a critical factor in developing a high performance
organization. The long term sustained success of the bank in todays changing and
challenging business environment involves top managements commitment in designing
and implementing HRM programs geared toward developing both high performing
employees and well-branded institution. Explain the above briefly and precisely.(sr. &
principal officer)
6. Explain the ways a company can be benefited from an efficient Asset Management
System, (ie from acquisition process through proper utilization to disposal), to achieve its
targeted strategic goals and objectives. Support your descriptions with justifications in the
perspective DBE. (Sr. &principal officer)
7. Describe the approved procurement methods of public financial enterprises.(sr. &
principal officer)
8. What do you understand by the term Policy? (Sr. &principal officer)
9. What is a mission statement? (Sr. &principal officer)

10. The bank maintains a well articulated Human Resource Management policy. Please
explain some of the policy issues related to HRM. (sr. & Principal Officer)
11. When the Bank (DBE) invites eligible bidders for procurement of goods and services, what
are the legal documents require from the bidders. Discuss.(sr. & principal officer)
12. Discuss the purpose of Job analysis with illustration. What is strategic HR
Management?(sr. & principal Officer)
13. May organizations provide trainings to their employees. However, the training of so many
organizations failed to contribute much to the job. Please state some reasons for such type of
comments. (sr. & principal Officer)
14. Please list out some of the challenges in human resource management that frequently raised.(sr &
principal Officer)
15. What does a job specification should explain about? (sr & principal Officer)
16. DBE has implemented different management tools such as BPR, BSC, and others so as to
adapt to the ever changing business environment. What are the major factors that
attribute to the adaptation of such tools by the Bank?(sr. & principal Officers)
17. Assume that the banks Human Resource Management process (HRMP) has planned to
hire additional man power for the coming budget year. State steps that need to be
followed to determine the required number of the additional man power?(sr. & principal
Officers)
18. Under the termination policy of the bank, an employee may be terminated due to some
reasons. Please explain some of the cause for termination(sr & principal Officers)
20. Why poverty has been a major concern of Ethiopia and what is the role of DBE in poverty
reduction effort of the Government?( principal officer)
21. What are the competencies of DBE? Please explain (principal officer)
22. What is the strategic mission of DBE? How does this mission support the GTP of the
country?( Sr. and Principal Officer)
practice in your province of duties?( Sr. and Principal officer)
25. What is customer complaint? How do you resolve? (Principal Officer)
27. List out all possible sources of corruption.(Sr. and principal Officer)
28. Please explain about gender equality and equity.(Sr. and Principal Officer)
29. DBE has conducted the BPR, BSC and has introduced to its working units and same are
d. Define BSC
e. Explain the basic perspectives of the plan in BSC and their respective
objectives.
f. Discuss the use of implementing BSC in DBE for strategic planning.
30. List down the types of moral theories and discuss them in detail.(Sr. and Principal Officer)
31. What does Grand Renaissance Bond mean? Explain.( all officers, Sr. and Principal Officers)
32.
What is your expected role in developing an effective team?(Sr. and Principal Officer)
II. SENIOR OFFICER
1 What is the maximum period for customer to respond after notice before bank
considers foreclosure action? (sr. Officer)
2 Define the phrase Statuary benefit giving at least one example to support your
answer?(sr. officer)
3 What is Re-engineering business Diamond? Put in their sequence and give brief
explanation.(sr. officer)
4 Why HR is important in an organization?(sr. Officer)
5 Discuss the concepts and practices revolving around fixed asset reconciliation.(sr.
officer)
6 Explain the procedure of government / public institutions and agencies procurement
process in both international and local procurements.(sr. officer)
7 One of the values of DBE is to be customer focused. How do you relate this with code
of Ethics of DBE?
8 What are the legal procedures and institutionally accepted practices to be strictly
adhered in disposing government owned property?(sr. Officer)
9 Depending on the nature of property to be disposed of what are the possible
alternatives to dispose public property?(sr. Officer)
10 Under the compensation, benefits and employees Service policy of the bank , please
list down the important issues covered under the policy.(Sr. Officer)
11 Shortly explain at least five human resource management functions.(sr. Officer)
12 Why does complain help your service improve ?(sr. Officer)

13 What do you understand by the term negligence of Duty?(Sr. Officer)
14 What are the possible causes of customer complaints (Sr. Officer)
15 How could you handle customer complaint?(sr Officer)
16 What are the main contents of typical job description form.(sr. Officer)
17 What does external vacancy notice (Advertisement) for vacant position include(sr.Officer)
18 Before an employment offer provided to a selected candidate what are the formalities to be
concluded by a candidate?(sr. Officer)
19 What does an employment offer letter content contains?(sr. Officer)
III. OFFICER
1) While foreclosing a pledged property there might be a claim by third party. Who are
the third parties? Explain (officer)
2) Differentiate between recruitment and selection.(officer)
3) Compare and contrast between Personnel and HRM.(officer)
4) Assume that you would promote to the post of HRM Officer. What are the duties and
responsibilities of HRM Officer and the required skills?(officer)
5) What do you understand by the term Human Capital (Officer)
7) What do you understand by the term public Relation? (officer)
8) What is HR planning? (officer)
9) Please explain by what you understand by the term synergy (officer)
10) Define and explain the purpose of Balance Score Card in the DBEs context
11) Discuss and explain the main duties and responsibilities of your process.(officer
12) Reflect critically on the Banks Vision, Mission and values.(officer)
part of a team.(officer)
14) The bank vision states that it will attain100% success for all project by 2020. What
do you understand by this statement( officer)
15) Out of the twelve principles of ethics list out 6 of them and explain how you apply
them while discharging your duties and responsibilities.(Officer)
16)
Explain at least five of the employees code of ethics of DBE. What does it
mean to you?(officer)
17)
What are the basic similarities between BPR and BSC?(officer)all process
19) Write the pinpoint responsibilities of the property administrative officer(officer)
20) What are the critical tasks of the property management process? Explain.(officer)
21) Explain between bin card and stock card(or store ledger),(officer)
22) What are the duties and responsibilities of property Management Process in DBE?
Explain the core activities to be undertaken in delivering these duties.(officer)
23) What are the benefits of taking inventory of fixed assets and materials balance on a
regular basis within a fixed inventory period every specified time?(officer)
24) If an employee performs below expectation during the given period of evaluation,
what does the bank do in such situation?(officer)
25) Assume that you would promote to the post of Human resource Management Officer.
What the duties and Responsibilities of Human Resource Management Officer and the
required technical skills?(officer)
26) What is customer service? (officer)
27) How do you define customer (officer)
28) What do we mean when we say a customer is a king(officer)
29) Please explain type of customers (officer)

30) Why internal customer service important? (officer)
31) Who are external customers ? (officer)
32) Why do we care for external customers (officer)
33) What are the benefit as effective customer service(officer)
34) What are the effects of poor customer service(officer)
35) How do you deal with customer (officer)
36) Vacancy are usually advertized through media on the nature of the title posts. What are the
known media for advertisement? (officer)
INFORMATION TECHNOLOGY (IT)
I. PRINCIPAL OFFICER / SENIOR OFFICER

1)
What is the primary method of providing security in T24 core-banking system? (sr. &
principal officer)
2) In computer system what is authentication? What is the most common and widely
used method technology used for authentication? (sr. & principal Officer)
3) What is STP (spanning tree protocol) ? Why we configure STP in a network ? (sr .
Officer)
4) Explain the role of information and communication technology in shaping the
landscape of banking operations. (sr & principal Officer)
5) What do you understand by the term Policy (Sr.and Principal Officers)
6) What is a mission statement?( Sr. and Principal Officers)
7) What is knowledge management? Suggest best practices in institutionalizing
knowledge management in Development Bank of Ethiopia. (sr. & principal Officer)
8) What does team charter mean to you and other team members? How do you put in to practice
in your province of duties?( Sr. and Principal officer)
9) What do you think are the key qualities that make a successful service provider .Discuss(Sr. and
principal officer)
10) Assume the following information used for the construction of a table in modern
DBMS system such as Oracle and MS SQL server.
A table is required to set up which is used to hold the following information about
members of a certain shop. The following table lists the required filed that the table
should contain with the name of the table. The primary Key of the table is ID while
House Number should be unique for each record. (sr. & principal officer)
Table Name
Members
Sex
Text
Name
Text
ID (Primary Key)
Integer
Type
Text
Birth Date
Date
House Number
Text
The following two questions are based on the above descriptions.

Write a complete SQL create table statement which is used to create a table with the
above specification
Assume that the table above has been created and filled up with records. Write a
select SQL command for displaying a record form this table with a name that begins
with the letter A and with Type First class.
11) DBE implemented a new network system and connected eleven branch using router.
What is router?
Discuses two routing protocol types in detail?(sr .& principal officer)
12) DBE wants to connect the remaining 19 sub branches to head office. Each sub branch
passes 20 ethio telecom router to reach head office. What kind of routing protocol is
not possible? Explain why? (sr. Officer & principal officer)
13) Explain the check and balance (control) system to be instituted between the finance
and Accounts Management Process and International Banking Service Process for
Cross- process transactions. (sr. & principal Officer)
14) SPF is an important file in T24 . Explain What SPF file is together with its uses. Give
three specific examples that show How SPF file is used in T24 with the name of entry
parameters in this file together with valid value for this particular parameter.
Write the steps that should be followed in configuring an Ethernet interface under
Linux Operating System. (Sr . & principal Officer)
15) With the substantially growing completion in the banking industry and other financial
institutions, one of their competitive features is the IT system they implement to
facilitate information transfer and improve their banking services. Discuss the ways
the advancements in IT system support the banking industry from different
perspectives. ( Sr. & principal Officer)
16) Assume the following table named product which has product ID, product name, price
and product Description filed is created in rational database. Use this table to answer
the following SQL questions. (Sr. & principal Officer)
Product
Product
ID
Name
Price
Product
DESCRIPTION
Clamp
12.48
Workbench
Clamp
50
Screw
3.17
Flat Head
Driver
75
Tire Bar
Tool for
changing
tires
3000
3mm
0.52
Bracket
Write the SQL statement used to put the above records in the table
Write the SQL statement that will be used to change the product description filed to
flat head screwdriver for the record with product ID equal to 75.
Write the SQL statement that removes all the records.
17) What is the use of SSL and SSH technology in computer security? What is the
difference between SSL and SSH ? (Sr. & principal Officer)
18) What is the difference between packet switching and circuit switching? (officer)
19) DBE started to build a new data center in head office . Please mention and explain in
detail the basic components (system) those are necessary to implement in the data
center.(Sr. & principal officer)
20) What is a system security? Explain briefly the aim of computer system security? (Sr. &
principal Officer)
21) DBE have plan for next year to place its website and DBE mail on one of security zone
to be accessed both from external and internal. Explain which security zone is
preferred to access those system from outside users while protecting users and
system inside the LAN? What kind of network device is used to do? (Sr. & principal
officer)
22) What is cryptography? Explain in detail why we use cryptographic in WAN
connection? Sr & principal officer)
23) T24 is a core-banking system which holds all the financial information of customers
and portfolio of the bank. And one of the most important things is a secured and
authenticated access of the system. Please explain in detail, how T24 can achieve a
properly authenticated and secured access of the different aspects of the system. (sr.
& principal Officer)
24) In computer system what is authentication? What is the most common and widely
used method /technology used for authentication? (Sr. Officer & principal Officer0
25) What is STP (spanning tree protocol)? Why we configure STP in a network? Discuss
types of STP protocol briefly? (Sr.. & principal Officer)
26) What are the four perspectives of BSC which the bank has adopted? What are the core
concepts contained in each perspective?(sr. & principal officer)
27) Why poverty has been a major concern of Ethiopia and what is the role of DBE in
poverty reduction effort of the Government?( principal officer)
28) What are the competencies of DBE? Please explain (principal officer
29) What is customer complaint? How do you resolve? (Principal Officer)
30) Please explain the following: (Sr. and principal officer)

31) List out all possible sources of corruption.(Sr. and principal Officer)
32) Please explain about gender equality and equity.(Sr. and Principal Officer)
33) DBE has conducted the BPR, BSC and has introduced to its working units and same are
g. Define BSC
h. Explain the basic perspectives of the plan in BSC and their respective
objectives.
i. Discuss the use of implementing BSC in DBE for strategic planning.
34) List down the types of moral theories and discuss them in detail. (Sr. and Principal
Officer)
35) What does Grand Renaissance Bond mean? Explain.( Sr. and Principal Officers)
36) What is your expected role in developing an effective team?(Sr. and Principal Officer)
II. SENIOR OFFICER
1.
What is computer virus? List three methods used to prevent a computer virus, and compare
and contrast their features and advantages of one over the other.(sr. Officer)
2.
Describe the network technology used to connect DBE Head Offices to its Branches, NBE, and
SWIFT. (Sr. Officer)
3.
Write all the required steps needed to configure and make ready to use a new hard disk in an
existing Red Hat Linux operating system. (Sr. Officer)
4.
T24 system is implemented using a 3-tier architecture. Please explain in detail, what the
three layers are, hoe communication is achieved among the layers and how T24 would
be working. (Sr. Officer)
5.
What is the use of compiler in computer programming? (Sr. Officer)
6.
What do you understand by the term negligence of Duty?(Sr. Officer)
7.
Can T24 be accessible without an application server if so how? (Sr. Officer)
8.
API (application program Interface) is heavily used in development? state the general use of
API in software development? (Sr. Officer)
9.
In password management, one of the common issues is password Aging and Reuse .State
what password aging and password reuse?(Sr. Officer)
10. Explain static IP address and dynamic ip address? Give example for which devices static IP
address assignee? (Sr. Officer)
11. In T24, there are three types of files, LIVE FILE, UNAUTHORISED FILE, and HISTORY FILE. Using
the USER application as an example, please show these three files are accessed and
maintained during creation and maintaining of a record. ( Sr. Officer)
12. What is a hub specified in the OSI MODEL/ (sr. Officer)

13. Which protocol is used to send a destination network unknown message back to originating
hosts? (sr. Officer)
14. Which class of IP address has the most host addresses available by defaulter? (sr. Officer)
15. Which command is used to upgrade an IOS on a Cisco router? (sr. Officer)
16. Discuss the accounting entries generated/raised in the form of STMT.EENTRY and
RE.CONSOL.SPEC.ENTRY files under T24 Core Banking system, clearly indicating their
differences. (sr. Officer)
17. Describe the network technology used to connect DBE Head Office to its Branches, NBE and
Swift. (sr. Officer)
18. Suppose DBE plan to connect 15 computers and two network printer of Debrebirhan sub
branch each other for file and print sharing, so as a network admin what kind of network
designee (topology) and equipment is recommend to their LAN? What network device
you suggest for WAN connection to head connection to head office? (Sr. Officer)
19. Compare TCP and UDP transmit ion and give two examples from each protocol.
Compare half duplex? (Sr. Officer)
20. Most of the time hard disk configuration in server involves utilizing RAID technology. In this
context what is the advantage of RAID 1? What is the limitation of RAID 1? (Sr. Officer)
21. What is multi-tire application? (Sr. Officer)
22. In Windows XP , which disk properties can you view with Disk Management? (Sr. Officer)
23. You have updated a device driver for a computer running Windows XP Professional, but you
now experience system problems. What should you do to correct the problem? (Sr
Officer)
24. Write the SQL command used to remove CUSTOMER table from the data base called HRDB?
(Sr. Officer)
25. You would like to look at the network configuration for a host on which you are working.
What is the best tool to use? (Sr. Officer)
26. COB stopped while running, there is no error logged in WB.EOD.Error. On restarting COB , it
stops at the same place .What to do? (Sr. Officer)
27. By looking at which field in the company application, you will know whether a company is a
lead or Branch company? (Sr. Officer)
28. What is the difference between Multi Company and Multi Book in T24 ? (Sr. Officer)
29. What is the name of operating system level environment variable that holds the path of the
VOC for jBase? (Sr. Officer)
30. jBase files are classified in two major categories . What are they? (Sr. Officer)
31. What does the STANDARD.SELECTION application used to store? (Sr. Officer)
32. What is the Linux command used to restore a T24 data backup named (sr. Officer)
33. List the names of the core parameter table of T24. (Sr. Officer)
34. What is IP telephony? List down its features. (Sr. Officer)
35. List down benefits of VLANS. (Sr. officer)
36. What flavor of Network Address Translation can be used to have one IP address allow many
users to connect to the global Internet? (sr. Officer)
37. Give an example of a network protocol that uses both TCP and UDP? (sr. Officer
38. What are the accounting entries generated by T24 during the following activities? (sr. Officer)
-PRLNCLPALNT accrual
Dr ACCPRLNCLPALNT
Cr PL51001
-PRLNCLPALINT & ACCOUNT make Due
Dr DUEPRLNCLPALINT
Cr ACCPRLNCLPALINT
Dr DUEACCOUNT
Cr CORACCOUNT
AGLNG FROM SPECLAL MENTION TO SUBSTANDARD
Dr SBSPRLNCLPALINT
Cr SMNPRLNCLPALINT
Dr SBSACCOUNT
Cr SMNACCOUNT
PRINCIPALINT SUSPEND
Dr PL51001
CrPRLNCIPALINTSP
RESUME ACTIVITY
DrPRINCIPALINTSP
Cr PL51001
III. OFFICER
1.
What is the commands you used to set your tenet pass word on a Cisco router? ( Officer)
2.
List down the benefits of VLANs. (officer)
3.
To test the IP stack on your local host, what IP address would you ping?(officer)
4.
What is the protocol used by ping? (officer)
5.
Name the factors that affect the performance of the network? (sr. Officer)
6.
What are primary keys and foreign keys in RDBMS? (officer)
7.
What is subnet?(officer)
8.
What is NAT? When do we use NAT? (officer)
9.
In the T24 core-banking system architecture, one of the components is the application server
such as JBoss application server implemented in the bank. what is the function of
application server such as JBoss? (officer)
10. Discuss and explain the main duties and responsibilities of your process.(officer
11. What does a VLAN do ? (officer)
12. Discuss and explain the main duties and responsibilities of your process.(officer
13. Reflect critically on the Banks Vision, Mission and values.(officer)
14. Discuss on how you can contribute to the best of your ability, both individually and as part of
a team.(officer)
15. The bank vision states that it will attain100% success for all project by 2020. What do you
understand by this statement( officer)
16. Out of the twelve principles of ethics list out 6 of them and explain how you apply them while
discharging your duties and responsibilities.(Officer)
17.
Explain at least five of the employees code of ethics of DBE. What does it mean to
you?(officer)
18. What are some of the purposes of the bank establishment as financial institution?(Officer)
19. What are the basic similarities between BPR and BSC?(officer)
20. What is T24 and explain its use in respect to DBEs needs? (officer)
21. Describe the difference between crossover cable and straight-through cable.(Sr. Officer)
22. What is DHCP and its use? (officer)
23. What type of RJ45 UTP cable is used between switches? (officer)
24. If an Ethernet port on a router were assigned an IP address of172.16.112.1/25, what would
be the valid subnet address of this host? (officer)
25. What is product catalogue? (officer)
26. Describe the payment schedule type inT24?
To remove duplicate rows from the results of an SQL SELECT statement, the-------------qualifier specified must be included.(Officer)
27. What is payment rule /order in T24? (officer)
28. How long is an IPv6 address . (Officer)
29. The bank is using T24 Core banking system which has different layer. Which software has to
be installed on the user machine to access the system? (officer)
30. What is the file name syntax for INT type of files? (officer)
31. How do you kill 1648? (officer)
32. What is the maximum number of IP address that can be assigned to hosts on a local subnet
that uses the 255.255.255.224 subnet mask? (officer)
33. If an Ethernet port on router were assigned an IP address of 172.16.112.1/25, what would be
the valid subnet address of this host?(officer)
34. To test the IP stack on your local host, what IP address would you ping? (officer)
35. What is the protocol used by ping? (officer)
36. Define and explain the purpose of Balance Score Card in the DBEs context
Business Promotion and Communication
I.
Principal Officer
1. What do you understand by the term Policy

2. What is a mission statement?
poverty reduction effort of the Government?(
5. What is public image in the context of DBE?
6. What are the competencies of DBE? Please explain
7. What is the strategic mission of DBE ? How does this mission support the GTP of the
country?
practice in your province of duties?(
.Discuss
10. What does Grand Renaissance Bond mean? Explain.
11. What is your expected role in developing an effective team?
II. Senior Officer

1. Briefly explain the concepts of press release and press conference and describe the
difference between press release and press conference.
2. What are the % Ws of Journalism.
3. What are the 5 essential parts of an article? Please explain.
4. What do you understand by the term negligence of Duty?
5. One of the values of DBE is to be customer focused. How do you relate this with code of
Ethics of DBE?
6. Please indicate the three most important means of communication. Define each of
them; Give an example for each of them.
III. Officer
1. Explain the roles of Business Promotion and Public Relation process in promoting the
Banks services to the public.
2. Please write short news having four paragraphs with minimum of 150 words relevant
to the news of DBE.
3. What do you understand by the term public Relation?
5. Discuss and explain the main duties and responsibilities of your process.
6. Reflect critically on the Banks Vision, Mission and values.
7. Discuss on how you can contribute to the best of your ability, both individually and as
part of a team.
8. The bank vision states that it will attain100% success for all project by 2020. What do
you understand by this statement
9. Out of the twelve principles of ethics list out 6 of them and explain how you apply
them while discharging your duties and responsibilities
10. Explain at least five of the employees code of ethics of DBE. What does it mean to
you?
11. What are the basic similarities between BPR and BSC?
12. What are some of the purposes of the bank establishment as financial institution?
13. The advantage of media in any society is enormous. Write down the advantages of
media by giving known examples.
14. There is an old saying that A picture is worth a thousand words. Life would be indeed
difficult without paintings, photographs, diagrams, charts, drawings, and graphics
symbols. Please explain why visual communication is important.
15. Briefly explain about the inverted pyramid style of news story writing?
16. Briefly explain the mission, Vision and Values of Development Bank of Ethiopia?
Legal Process
1. Enumerate the elements of a valid contract under the Ethiopian Law.

2. If an immovable property under mortgage is attached by the mortgager, what
would be the rights of the mortgagee?
3. Discuss the advantage of banks introduced by Proclamation number 97/90 and
98/98
4. Describe the liability of a winner at public auction where he fails to pay the
wining price within a fixed period of time.
5. What do you understand by the term Policy?
poverty reduction effort of the Government?
7. What does team charter mean to you and other team members? How do you put
in to practice in your province of duties?
.Discuss
9. What is customer complaint? How do you resolve?
11. List out all possible sources of corruption.
12. Please explain about gender equality and equity.
13. What does Grand Renaissance Bond mean? Explain
14.
What is your expected role in developing an effective team?
15. DBE has conducted the BPR, BSC and has introduced to its working units and
same are implemented as per the redesigned work flow and BSC for planning &
performance measurement.
j. Define BSC
k. Explain the basic perspectives of the plan in BSC and their respective
objectives.
l. Discuss the use of implementing BSC in DBE for strategic planning.
16. List down the types of moral theories and discuss them in detail.
17. What are the competencies of DBE? Please explain
18. What are the four perspectives of BSC which the bank has adopted? What are the
core concepts contained in each perspective?
19. One of the values of DBE is to be customer focused. How do you relate this with
code of Ethics of DBE?
20. Discuss and explain the main duties and responsibilities of your process.
21. Reflect critically on the Banks Vision, Mission and values.
22. Discuss on how you can contribute to the best of your ability, both individually
and as part of a team.
23. The bank vision states that it will attain100% success for all project by 2020.
What do you understand by this statement
24. Out of the twelve principles of ethics list out 6 of them and explain how you apply
them while discharging your duties and responsibilities
25.
Explain at least five of the employees code of ethics of DBE. What does it
mean to you?
26.
What are the basic similarities between BPR and BSC?
27. What is a mission statement?

28. What do you understand by the term negligence of Duty?
29. What is due process of law?
31. What are the possible crimes frequently committed against the inertest of Bank?
32. Investment in banking sector has remained the exclusive domain of Ethiopian
nationals and entities totally owned by Ethiopians. How do you evaluate the
wisdom of the investment law?
33. The Ethiopian law/proc. 97/1998 & proc. 98/1998/ has come up with extrajudicial sale of collaterals/power of foreclosure/ for recovery of non-performing
loans, which is exclusively for bank lenders. Some claim that this arrangement
affects the due process rights of borrowers. What would you say on this point?
34. Business engagements in financial sector in general and the banking business in
particular are alleged to have been subjected to strict regulations as opposed to
business activities in other areas of business.
Explain Potential reasons for that.
35. Do you think that the above statement holds true in Ethiopia? If so, please
mention and explain the major manifestations of this strict regulation in
Ethiopian banking law/based on proc..No. 592/2008/.
36. In order to avoid/mitigate potential Legal or credit risks, the Ethiopian
Development Bank Credit policy has come up with the following statement:
Any deviation from the agreed terms and conditions will be and event of Default
According to the credit policy of DBE, what events do the borrower declared
defaulter?
37. In the due diligence assessment work, DBE requires so many legal compliances
from loan applicant. List at least five and discuss the importance of these
documents.
38. Explain the maxim Justice Delayed is justice Denied. Do you think that this
maxim holds true in Ethiopia? If so, please mention and explain the major
manifestations of the Maxim.
39. What are some of the purposes of the bank establishment as financial institution?
40. Explain the merits of Private Limited and Share Company. And mention at least
five differences between PLC and Share Company.
41. What circumstances should take into consideration in the provision of legal
opinion?
42. What are the concepts contained in Balanced Score Card implemented in DBE
43. ABC Plc; is a company established to invest Sesame Farming In Gambela Region.
Neor Zone, Balare wereda. For its investment the company has taken 600
hectares of land by the lease agreement made with concerned administration
office for the period of 30 years. After holding the farm land , it approached the
development Bank of Ethiopia for a loan amounting to Birr 10 million. Then the
Bank appraised the project and approved the requested amount of loan to
support the investment. Finally, the company has signed loan and mortgage
agreements with the bank. And the whole project assets including the land in
which the project is established were made collateral for the proper repayment of
the loan and the mortgage is duly registered by the concerned authorities.
Accordingly, Birr 8 million was disbursed in three rounds. Unfortunately, however, the
local authority took 300 hectares of land in which the project is established and warns
the company by saying that they will take the remaining land before the end of the lease
period under the pretext that the company doesnt observe the terms and conditions
laid down on the lease agreement.
Based on the above facts , answer the following questions and advise the Bank to that
effect:
a) What is the potential legal remedy for DBE with respect to its collateral? Which
agreement shall prevail, the mortgage or lease agreement?
b) Which prudent care and measure should the bank take before approving the
loan, during signing the contract (loan/Mortgage) and in the process of
disbursement?
c) What is the fate of the loan agreement and the balance in commitment as the
borrower is claiming?
44. Write down potential deviations, by customers, which shall be considered as
Events of Default. Explain the possible legal remedy that DBE could take in such
circumstances.
General Questions: Short answers
I.
PRINCIPAL/ SENIOR OFFICER
2. The government of Ethiopia in an effort to reduce poverty has considered and

Implemented several strategies, among others ADLI, PASDEP and GTP can be
mentioned. Please explain the tenets of these strategies. (Sr & principal Officer)
3. As we all see oil prices have a special place in all economies. Almost all countries keep
watching and alert on the oil prices in the International market .Why is oil so
important for' the countries and their economies to survive?( Sr. & principal Officer)
4. An economic down turn/Recession was happened in great economies of the world in 2009.
Please explain the causes and consequences of the crisis? (Sr. & principal Officer)
5. Usually, it is highly pronounced by macro-economy analysts the development of

energy sector is the drive for development of other sectors and therefore, for
development of a country. Comment on the statement and support your
arguments by premises from different angles. (principal Officer)
6. Renewable Energy and Environment Protection are the major concerns of the world
these days. Explain why these two issues are becoming the common pain of
all.(Sr & principal officer)
7. How much will be the supply of electricity after the accomplishment of the Great
Renaissance Dam? (Sr and Principal officer)
8. Please explain what you know about the following: (Sr & principal Officer)
Climate change,
Kyoto protocol,
Effect of greenhouse gas emission(GHG),
Carbon Credit,
Global Warming, causes and effects,

9. What are the focus areas in Gender equality in the GTP? (Sr. & principal Officer
10. Different governmental institutions and agencies have some kind of stakes with DBE
from different perspectives. What are the major stakeholders of the Bank?
Explain the stakes of each stakeholders and the way they are involved in the
business of the bank? Explain the stakes of each stake holder and the way they
are involved in the businesses of the bank. (Sr. & principal Officer)
11. What are the pillars of the GTP? (Sr. & principal Officers)
II.
SENIOR OFFICER
1 Please explain in detail the following key words: (Sr.Officer)
Good Governance and capacity building
MDG- Millennium Development Goals of the United Nations.
Growth and Transformation Plan of the FDRE
Foreign Direct Investment
Any other key words you might know other than the above,
Many a time we read a term PPP in financial papers. What is the full of the same as used in
financial world? (Sr. Officer)
3 Which sector of the economy with the largest National Income in Ethiopia? How much
was the contribution to the economy in per cent? (Sr. Officer)
4 GATT (General Agreement for Tariff and Trade) is an international agreement. Please
explain about this agreement. (Sr. Officer)
5 G-8 and G-15 are economic grouping of nations. Pleas briefly explain about their
purpose. (Sr. Officer)
III. OFFICER
1. India, Brazil ,South Africa Russia made a forum in 2003 which is playing a very significant role
in dealing with the issues of common interest of all the three in general and their foreign
policies in particular. What is the name of that forum? (Officer)
2. When the current credit policy of DBE was issued? (Officer)
3. As per the figures released by NBE in 2013 what is the per capita income of Ethiopia?
(Officer)
4. What is the current supply of Electric Power in Ethiopia? (Officer)
5. Where is the head quarter of the World Bank? What is the other name of the World
Bank? (Officer)
6. What is the current capital Of DBE? (Officer)
7. Which bank in Ethiopia performs the duty of Central Bank? What are its functions?
(Officer)
8. Of all energy sources which one is the most environmentally friendly? (Officer)
9. Why were the IMF and the World Bank conceived as institution? (Officer)
10. What do you understand by free market? (Officer)
Policy, Procedure and Guidelines

(Questions are prepared for all Bank Officers.)
1. Discuss the following DBEs credit policy issues that must be adhered to while preparing
the appraisal report.
Debt to Equity ratio for New, Additional and Expansion loans
Grace period
Collateral
Rescheduling
2. DBEs uniqueness in the banking business is the project based lending unlike the collateral
based lending 0f the commercial banks.
What are the distinctive features that make DBE different from
commercial Banks?
What are the associated risks on project lending?
Mention some of the risk mitigating factors in project lending.
3. The Bank extends investment credit (major categories of priority area for DBE loaning
services) to creditworthy borrowers and projects that have received a thorough appraisal
and are found to be financially and economically viable and socially desirable. What do
you understand by investment credit?
4. What do you understand by Credit Worthy borrower and/or Projects?
5. Any projects to be acceptable for bank financing it should be environmentally friendly /ecofriendly other than its financial and economic viability. Please explain why projects are required
to be environmentally friendly and what is environment protection?
6. What mitigation measures shall be considered while appraising investment projects to

protect the environment?
7. The bank has categorized projects as A B C D on the basis of their impact on the
environment. Please define projects under each category.
8. What is risk and how do you identify risk?

9. How do you measure risk?
10. Please explain how you treat/control risk?
11. When does the role of risk management take place in any organization?
12. Please define credit risk?
13. What are the purposes of credit risk?

14. In view of credit risk management how do you achieve a healthy loan portfolio?
15. Please explain the causes of credit risk.
16. What does money laundry involve?
17. What is credit administration?
18. There are a number of key risk factors with significant negative impact on individual
project/credit and the portfolio in general. What are some of the early waning indicators
while administrating loan?
19. DBE has established an internal credit risk rating system to measure the strength of
customers while assessing the background of customers. What are the main bench
marks/values?
20. What are the term of repayment for long term, medium term and working capital loans in DBE
context?
21. What are the purposes of working capital loan?
22. Under what condition is that applicants for working capital loan may not be accepted for the
facility?
23. The credit policy of the Bank allows projects under distress to get working capital loan. Under
such situation what are the steps the loan officer need to consider before entertaining the
application.
24. Prior to entertaining rain fed priority area agricultural projects, what precautions should be taken
by loan officers?
25. Please mention some of the targeted priority areas of commercial farms eligible for credit.
26. What are agro Processing Industries?
27. Please explain the term co-financing/syndicate financing.. Why do banks enter into a cofinancing scheme?
28. What are the two types of guarantee service provided by DBE commercial banks and
other financial institutions? Please define financial guarantee service.
29. What factors characterize a project to be in manufacturing sector?
30. Define Managed fund? Please explain its purpose.
31. What are some of the peculiar conditions of managed fund different to the regular lending
practices?
32. As per the credit policy of the bank healthy loans can be transferred to the Bank. What are some
of the criterion for loan transfer?
33. Please explain about lease financing. Under what circumstances does the bank entertain
lease financing?
34. What are some of the eligibility criterions for lease financing?
35. Why customers are required to submit pro forma invoices?
36. Pro forma invoices contain detail information about the items to be procured. Please
write down some of the descriptions indicated in the invoices:
37. What is a bid document and its purpose?
38. Why do banks assess track record of applicants?
39. DBE requires a feasibility study from applicants for the business they intend to establish.
Please list down and explain all topics in the feasibility study of a project.
40. What are the independent teams/Loan processes/at corporate and Regional Level of the
Bank?
41. Please explain how the teams in CP and Branches are expected to serve customers?
42. What strategies do CP and Branches follow while recruiting customers?(There are a
number of methods and please mention at least 10 of them.?
43. Please discuss the purpose of due diligence assessment on the background of customers?
44. Please discuss the purpose and importance of the AML/CFT compliance directives No.
01/2014?
45. What does a projected financial section of a project show?
46. There are several issues you might discuss about the socio-economic issues while
appraising a project. What are the most important matters in this section?
47. What is the importance of instituting effective anti-money laundering (AML) and
Combating the Financing of Terrorism (CFT) regimes in the context of Ethiopia, and how
do you identify suspicious transactions? Discuss.
48. In the course of due diligence assessment the bank strictly conducts heightened security
on perspective customers in line with the directives and requirement of FIC Financial
AML/CFR compliance directive No. 01/20014. Who are the legal persons this directive
refers to?
49. Please explain the major precautions taken by banks officers to counter any unlawful acts
during financial transactions?
50. Why does the bank limit the repayment of short term working capital loan to be within
two years?
51. Please explain project under distress mean to You?
52. Suppose project under distress applies for working capital loan, what steps are you
considering to entertain the request?
53. Explain the reasons why the bank enters into tripartite agreement with selected
customers through especial arrangement by the government.
54. Please explain the term project expansion. What are some of the assumption for a project
to expand?
55. What are the purposes of rehabilitating sick projects?
56. When is a project defined as sick?
57. When is the bank consider and/or the project is acceptable for rehabilitation?
58. What are the key criteria for sick loan returns to CP after rehabilitation?
59. Please explain why foreclosure action is considered on sick projects?
60. Please explain some of the remedial actions to be considered to rehabilitate sick projects?
61. Sick Projects (loans), which are deemed recoverable, can be transferred to new clients.
What are the preconditions to be met before the transfer action is considered.
62. One of the mechanisms to rehabilitate sick project include management intervention.
What are the purposes of the intervention?
63. How is the bank implements management intervention on sick projects?
64. Please explain the purpose of loan restructuring as resolution mechanism to sick or
troubled loans.
65. What are some of the preconditions to rehabilitate sick projects?
66. What are the proclamations to execute foreclosure actions on sick projects?
67. What are some of the procedures to take foreclosure action against sick projects?
68. During the foreclosure action, suppose the proceeds from sales exceed the loan amount
what actions do the concerned processes take?
69. What is an event of default? When does the bank consider that there is an event of
default on loans?
70. What is the term write off/Write back? What are the conditions to consider write off
action by the bank?
71. If an acquired property is not sold in consecutive auctions, what action does the bank
consider as a last resort?
72. One of rehabilitation mechanisms includes reorganization of the project. What are the
steps involving in such actions?
73. The Bank accepts appeals by customers on presumed misdemeanors or unfavorable
decisions. Please list down and explain the stages of appeal in their order.
74. How much is the single borrower limit for an individual or other customer?
75. What are the authorized limits of the Banks officials to write off/write back loans as
per the banks credit policy?
76. Why does the bank require collateral? Suppose the project is established on rented
premises and/or rented from government how do you treat the collateral issues?
77. Explain how repayment period of loan is determined?
78. How is the mode of interest payment according to the banks credit policy?
79. Please define a grace period. What is the maximum grace period being granted by the
bank for project realization?
80. Why are customers required to buy insurance policy?
81. Please explain the type of insurance that customers expected to purchase.
82. All applicants for loan are required to present competitive bid documents for any
procurement of goods and services in excess of USD One Million. What are the
precautions that have to be taken by concerned processes?
83. Discuss the reason why the Bank always requires equity contribution from the project
owner.

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DEVELOPMENT BANK OF ETHIOPIA

Examination Data Handbook

Most often, due to absence of

Mistreatment of customers ( nagging and harassment);

Credit /Research/Risk/Approval /Appraisal

47. What is customer complaint? How do you resolve? (Principal Officer)

1.0 Please explain what you understand by log frame? ( Sr.Officer)

What are some external factors which disrupts projects? ( Sr.Officer)

of the areas under the drip system. ( Sr.Officer)

What are the characteristics of high quality data? ( Sr.Officer)

we are required to know? ( Sr.Officer)

explanation for each of them. ( Sr.Officer)

the key issues you may consider in your assessment? ( Sr.Officer)

the duties and responsibilities of an agricultural engineer would be? ( Sr.Officer)

DBE is financing projects from priority area of the government. In identification of

plants and vegetations on farms.(Sr. Agr.Engineer)

Describe the commonly known tractor implements in intensive agriculture; and

explain the mode of operations and purposes of each implement.(Sr. Agr.Engineer)

required resources to begin a poultry farm project? (Sr.Officer, animal science)

mechanisms. (Sr. officer, animal science)

Officer animal science)

(Sr.officer, animal science)

the processes.(Sr. officer ,animal science)

herd size on the third year? (Sr.officer, animal science)

(Sr.Officer , animal science)

for production of a certain commodity.(Sr. Officer)

Company X is financed by DB and now categorized as an NPL. Classify the following

Performing over invoicing

Ignoring the early signs of NPLs

Use of other Banks LC facility

Submission of misleading business

Over swelling of unrealistic cash

Inappropriate relation with credit

Low lending interest rate set by

Global economic crisis

be done. Justify. (Sr. .officer)

detail. (Sr. officer)

In the construction industry, claims means, a demand by a contractor for extension of

Discuss the variables to be considered in the selection of appropriate capacity of a

DBE perspectives.(Sr. officer)

in detail at least two techniques widely applied in DBE perspective.(Sr. officer)

Environmental impact assessment is a process for identifying the environmental

effects (positive or negative) of proposed developments before development consent is

sick? Explain (Sr. Officer)

What is the relevance of commodity report/study in the loan processing decision

making process?(Sr. officer)

Describe how loan portfolio concentration risk is managed by DBE?(Sr.officer)

DBE perspectives. (Sr. officer)

a grace period, explain.(Sr. Officer)

a) Mention and discuss at least three measures of viability of projects

Which method estimate better? Why?(Sr. Officer)

The following project is evaluated by an enterprise with an approved target

accounting rate of return of 20%. (Sr. Officer)

Expected profits (before depreciation deductions)

Amount to be recovered from

procedures to be considered by the bank? (Sr. Officer)

What do you understand by the term bureaucracy. (Sr Officer)

What is strategy and strategic planning? (Sr. Officer)

What do you understand by the term negligence of Duty?(Sr. Officer)

Describe SWOT analysis Model and explain its importance.(Sr. officer)

that supports your analysis? (Sr. Officer)

What is Par Value?(Sr. Officer)

At rural household level