Edilawit Gebregiorgies*
This study is undertaken to investigate the factors affecting Islamic banks’ financial services in Ethiopian banking industry with specific reference to commercial bank of Ethiopia branches found in Harar town. To achieve the aim of the study the primary data was collected through standard questionnaires. For measurement purpose, the Likert scale method was used to range of responses. The sample size was made up of 218 respondents. In which 18 interest free window employees and 200 customers are included. Purposive sampling technique was applied in sample selection. Analysis was done using inferential statistics using SPSS software. To determine existing relationship between the variables of study the researcher used correlation and regression analysis. The study result reveal that, all independent variables that are relative advantage, complexity, awareness, compatibility and perceived risk have small positive relationship and statistically significant correlation with dependent variable that is Islamic banking financial service. To conclude, the independent variables have serious effect on the Islamic banking service of CBE branches in Harar town. The bank should prepare different awareness creation programs and advertisement packages to create good awareness regarding Islamic banks operation and their services through focusing and continuing the Awareness creation programs using different occasions.
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