1906

1931

1936

1943

1963

Modern banking in Ethiopia was first introduced in 1906 when the Bank of Abyssinia was established based on the agreement being reached between the Ethiopian government and the British owned National Bank of Egypt. Bank Abyssinia was inaugurated by Emperor Menelik II on February 16, 1906

In 1931, Emperor Haile Selassie introduced reforms into the banking system. The Ethiopian government purchased the Abyssinian Bank, which was the dominant bank, and renamed it the Bank of Ethiopia—the first nationally owned bank on the African continent. The Bank of Ethiopia provided central and commercial banking services to the country.

During the five years of Italian invasion (1936-41) banking activity expanded. The Italian banks were particularly active. After the liberation, where the role of Britain was paramount owing to its strategic planning during the Second World War, Barclays Bank was established and remained in business in Ethiopia between 1941 and 1943.

On April 15, 1943, the State Bank of Ethiopia became the Central Bank. Like its predecessor, the Bank combined a central banking and commercial banking operations. By the time it ceased operations in 1963, the State Bank of Ethiopia had established 19 domestic branches, a branch in Khartoum, and a transit office in Djibouti.

In 1963, the State Bank of Ethiopia was split into the National Bank of Ethiopia and Commercial Bank of Ethiopia thereby clearly demarcating central banking and commercial banking operations. The National Bank of Ethiopia was established in 1963 by Proclamation 206 of 1963 and began operation in January 1964.