―Challenges Of Corporate Governance In Ethiopian Private Banking: The Case Of Cooperative Bank Of Oromia S.C

Abstract

This study aimed to assess the challenges of corporate governance in Ethiopian private banking, focusing on Cooperative Bank of Oromia S.C. By surveying 319 employees selected through simple random sampling from a target population of 1582 managerial and administrative staff, the research identified key areas for improvement. The study employed a descriptive research design, utilizing both quantitative and qualitative methods to explore corporate governance challenges. Data collection involved questionnaires with Likert-scale questions and interviews for primary data, while secondary data were obtained from the bank's reports and documents. Analytical methods such as thematic and content analysis, along with descriptive statistics, were used to interpret the data, with visual aids presenting the findings effectively. Reliability was ensured through pilot testing and subsequent questionnaire adjustments. Validity was upheld by using reliable data sources and validated items from previous research. Ethical considerations were meticulously addressed, ensuring participant confidentiality and maintaining high professional standards throughout the research process. Findings highlight the Management at Cooperative Bank of Oromia S.C. emphasized ongoing challenges in regulatory compliance, board effectiveness, and stakeholder engagement, advocating for measures such as improved corporate control, resource allocation, and board management. These insights offer valuable lessons for other banks, advocating for robust internal controls, effective resource allocation, and transparent communication, aligned with Ethiopia's cultural and regulatory context. Recommendations include conducting skills gap analyses, setting diversity targets, and enhancing transparency and accountability. Additional measures to bolster internal controls, optimize resource allocation, and improve board effectiveness are also proposed. Implementing these recommendations can strengthen governance practices and ensure long-term sustainability for the bank.