Banks in Ethiopia Continue to Grow Despite Challenges

Addis Ababa August09/2022/:- The Ethiopian banking sector has registered a remarkable growth despite the fact that it faced various challenges such as COVID-19, internal conflict, and the Ukraine-Russia crisis, Dr. Yinager Dessie said.
In a meeting held with CEOs of banks, on 8th August 2022 at Hilton Hotel, H.E. Dr. Yinager Dessie, Governor of the National Bank of Ethiopia (NBE), said that the banking sector has continued to registering growth in asset, capital, deposit, loan distribution, loan collection and other financial growth indicators.
“In terms of financial soundness,” the Governor added “ as indicated in Capital Adequacy Ratio, Liquidity and Non-Performing Loan (NPLs), the banking sector is healthy sound.
The Governor said “Over the last four years, NBE did embark on various policy issues, which help to address bottleneck and lingering problems in the financial sector” Proclamations, directives, and other legal instruments were issued, and amended. Besides, exchange rate, interest rate and demonetization were also among the major endeavors.”
With regard to the banking sector, and digital financial system, Ato Frezer Ayalew, Director of Banking Supervision, and Ato Solomon Damtew, Director of Payment Settlement and System, explained that remarkable progress have been registered.
According to Ato Ferezer, the number of banks has increased from18 to 30, and their branches reached to 8,944, as of June 30, 2022, from 5,564 four years ago.
With the expansion of bank branches, the ratio of branch per population reached to 1: 11, 516 (one bank branch serves 11, 516 people). Besides, the number of deposit accounts has increased from 40.04 billion birr to 83.3 billion birr. Hence, the total deposits, over the last four years, have increased from 899 billion in 2019, to 1.7 trillion Birr in 2022.
The total capital of the banks has boosted from 98.9 billion in 2019 to 199.1 billion birr in 2022. The growth registers 27 percent average yearly growth. Moreover, total asset of banks has ascended from 1.3 trillion birr to 2.4 trillion Birr registering 92 percent growth.
Net income of banks has increased from 22.4 billion birr in 2019 to 49.9 billion birr in 2022 registering 122 percent growth, as it was indicated.
According to NBE, the banks have continued to operate in a safe and sound manner, though there is a need for strengthening advanced preparation for opening banking sector to foreign investors was emphasized.
Appreciating the progress registered over the past four years, presidents and CEO’s of the banks suggested to join hands to building human capital and to mitigating illegal acts in financial sector.
Currently 29 commercial banks, one development bank, 18 insurance companies, one re-insurance company, 40 microfinance institutions, six Capital goods Finance/Lease companies, and eight payment instrument issuers/system operators are operating in Ethiopia.

የኤግዝኪዩቲቭ ማኔጅመንት አባላት የችግኝ ተከላ አካሄዱ

የኤግዝኪዩቲቭ ማኔጅመንት አባላት የችግኝ ተከላ አካሄዱ

ሐምሌ 5 ቀን 2014 ዓ.ም:- በባንኩ ገዥ ዶክተር ይናገር ደሴ የሚመራው የኢትዮጵያ ብሔራዊ ባንክ የኤግዝኪዩቲቭ ማኔጅመንት አባላት የአራተኛውን የአረንጓዴ አሻራ መርሐግብር መሠረት በማድረግ የችግኝ ተከላ አካሄዱ።

ትናንት ሐምሌ 5 ቀን 2014 ዓ.ም አቃቂ/ቃሊቲ በሚገኘው የኢትዮጵያ የፋይናንስ ጥናት ተቋም በተካሄደው በዚህ መርሐግብር የኤግዝኪዩቲቭ ማኔጅመንት  አባላት ክቡር ገዥ ዶክተር ይናገር ደሴ፣ አቶ ፈቃዱ ድጋፌ፣ የባንኩ ምክትል ገዥና ዋና ኢኮኖሚስት፣ አቶ ሰሎሞን ደስታ፣ የፋይናንስ ተቋማት ሱፐርቪዥን ምክትል ገዥ፣ አቶ እዮብ ገብረየሱስ የኮርፖሬት ሰርቪስ ምክትል ገዥ እንዲሁም አቶ አባተ ምትኩ የለውጥ ማኔጅመንት፣ ዕቅድና ኮሙዩኒኬሽን ዳይሬክተር ተሳትፈዋል።

በተጨማሪም አዲስ ተቀጣሪ ጁኒየር ኦፊሰሮችና የትውውቅ ሥልጠና ተሳታፊዎች፣ እነርሱን የሚያሰለጥኑ ኃላፊዎች፣ የተቋሙ ኃላፊዎችና ሠራተኞች የችግኝ ተከላ አስተባባሪ ኮሚቴ አባላት፣ ሌሎችም በተለያዩ አጋጣሚዎች በማሠልጠኛ ተቋሙ ውስጥ የተገኙ ሰዎች የተዘጋጁትን ችግኞች ተክለዋል።

በዘንድሮውና ቀደም ባሉት ዓመታት በተካሄዱት የአረንጓዴ አሻራ መርሐግብሮች ከ10ሺ በላይ የተለያዩ አገር በቀልና የውጭ ዝርያ ያላቸው ዛፎች፣ ለምግብነት የሚውሉ ፍራፍሬና ለውበት የሚሆኑ የአበባ ችግኞች በተቋሙ ውስጥ ተተክለዋል።

በቅርቡም ለምግብ የሚሆኑ እንደቆስጣ፣ ሰላጣ፣ ጥቅል ጎመን፣ ቲማቲም፣ ድንች፣ ካሮትናሌሎችንም አትክልቶች በማልማት ለተቋሙና ለዋናው የባንኮች ክበብ ማቅረብ ተችሏል።

ለተተከሉት ችግኞች ዘወትር እንክብካቤ የሚያደርጉ ባለሙያዎች በመመደባቸው ችግኞቹ ጸድቀው በፍጥነት ያደጉ ሲሆን፣ አበቦቹ ደግሞ ለተቋሙ ምድረግቢ ልዩ ውበት ሰጥተውታል።

ችግኞቹ ከሰውና ከእንስሳት ንኪኪ ነጻ በመሆናቸው ዕድገታቸው ፈጣን ከመሆኑም በላይ ለችግኞቹ በሚደረገው እንክብካቤ ሳቢያ ጠፍተው የነበሩና ልዩ ዝርያ ያላቸው ሌሎች የተክል ዓይነቶች መብቀል ችለዋል።  

የኢትዮጵያ ብሔራዊ ባንክ ሠራተኞች በአረንጓዴ አሻራ መርሐግብር መሠረት ከተከሏቸው ችግኞች በተጨማሪ ባለፈው ዓመት ለልደታ ክፍለከተማ የ200ሺህ ብር እንዲሁም ዘንድሮ ደግሞ ለአቃቂ/ቃሊቲ ክፍለከተማ የ100ሺህ ብር ችግኞችን ገዝቶ በማስረከብ ለመርሐግብሩ ስኬት ባንኩ የድርሻውን በመወጣት ላይ ይገኛል።

NBE Signs MoU with AFREXIMBANK

NBE Signs MoU with AFREXIMBANK

Addis Ababa. The National Bank of Ethiopia NBE) and African Export-Import Bank (Afreximbank) signed a Memorandum of Understanding (MoU) in a bid to support trade and investment activities in Ethiopia.

Dr. Yinager Dessie, Governor of National Bank of Ethiopia (NBE), and Professor Benedict Oramah, President and Chairman of Afreximbank, signed the MoU.

Upon the signing, held on February 8,2022, at Sheraton Addis, it was disclosed that the African Export-Import Bank (Afreximbank) will provide more than $1 billion loan to support the trade and investment of private and public sectors in the country in the form of line credits.

Governor of National Bank of Ethiopia (NBE) Dr. Yinager Dessie, on the occasion stated that upon implementation of the MoU signed, Afreximbank will provide the loan with the stated amount of USD to the public and private banks which in turn give credit both to the public and private sector.

“The loan agreement is important to solve the country’s foreign exchange shortage and stimulate the economy,” the Governor added. “particularly at a critical time like now when the COVID-19 pandemic has affected  the country’s socio-economic spectrums, which are critical elements for development, job creation and poverty reduction.”

“As a matter of fact” the Governor said, “the MoU aims at strengthening our bilateral cooperation, with in which creating a broad framework for collaboration in areas of common interest, particularly in the field of trade and investment.”  

President and Chairman of Afreximbank, Professor Benedict Oramah, on his part expressed his bank’s commitment to support Ethiopia’s development and growth. He also praised the reform in Ethiopia that proved resilient economy during the pandemic.

“Even when major developing economies witnessed growth contraction at the height of the pandemic, Ethiopia proved its resilience by maintaining a robust growth trajectory posting a commendable 6.1 percent growth rate in 2020,” the Professor said citing to World Bank data.

Afreximbank has identified the enthusiasm and opportunities of trade and investment in Ethiopia, and decided to work with the NBE and other designated local banks of the country.  

Professor Benedict Oramah underscored, “Through this MoU, we affirm our collective determination to accelerate the ongoing collaboration and to strengthen the financial and corporate sectors, which are engines of sustainable development in this country.”

Ethiopia is member to the African Export-Import Bank, but the collaboration needs to be boosted hereafter.  

Headquartered in Cairo, Egypt, African Export–Import Bank (Afreximbank) is a pan-African multilateral trade finance institution created in 1993 under the auspices of the African Development Bank (AfDB).

V/Governors and concerned directors of the National Bank of Ethiopia (NBE), and presidents of  of private banks were also present at the signing ceremony.

Public Notice

Public Notice

Pursuant to the power vested in it under Article 64 (2) of Proclamation No 746/2012 as amended under Proclamation No.1163/2019, the National Bank of Ethiopia is planning to issue a directive on “Risk Based Internal Audit”.

Accordingly, the National Bank of Ethiopia hereby invites any interested/concerned person to comment on the draft directive within one month commencing from the date on which this notice is posted on its website.

Drop your comments at belayt@nbe.gov.et , or send them via the Post Office to Insurance Supervision Directorate at the P.O.Box  No. 5550 latest by November 30,2021.

NBE Issues Additional Exemption on Loan Restriction on October 27-2021

NBE Issues Additional Exemption on Loan Restriction

October 27, 2021. National Bank of Ethiopia (NBE) announced today that it has issued additional exemption on loan restriction.
The exemption has been issued for Companies Supplying Petroleum Products in line with an agreement entered with Ethiopian Petroleum Supply Enterprise.
According to the notification dispatched to Bank CEOs, the exemption is effective as of today, October 27, 2021.
For the sake of clarity, NBE underlines that this exemption, for the time being, doesn’t include petroleum dealers.
It’s to be recalled that NBE did issue exemptions regarding loan disbursement on October 1, 2021, on five loan categories. 

NBE Issues Additional Exemptions for some loan categories on October 04-2021

                 

NBE Issues Additional Exemption on Loan Restriction

October 4, 2021:  National Bank of Ethiopia has issued additional exemptions regarding loan disbursement.  

In a circular addressed to all banks on Friday, October 1, 2021, NBE has issued further exemptions for the following five loan categories.  

1. loans to buyers of bank’s foreclosed properties availed for the purpose of ensuring loan recovery

2. inter-bank loan buyout transactions 

3. bank staff emergency loans

4. housing loans approved/committed to be provided for employees of companies for the purpose of buying or constructing residential houses (only for committed or approved requests); and 

5. loans approved for sesame producers found in Gondar area for the purpose of ensuring timely harvesting of same. 

The National Bank of Ethiopia was established in 1963 by proclamation 206 of 1963 and began operation in January 1964. Prior to this proclamation, the Bank used to carry out dual activities, i.e. commercial banking and central banking.

P.O.Box: 5550
Tel: +251 115 517 430
E-mail: nbeinfo@nbe.gov.et
Fax: +251 115 514 588
Avenue: Sudan Street