Ethiopia will shortly provide licences to five foreign banks

The National Bank of Ethiopia intends to strengthen domestic financial institutions while also bringing in foreign banks, according to Solomon Desta , Deputy Governor of the Bank’s Financial Institutions Department.

“We’re just about done with it. Additionally, we are trying to complete the decree change. We are asking for donor input. When it is a few months old, it will be made public. The job is progressing faster as a result, he claimed.

The Deputy Governor added that there are plans to licence three to five international banks over the course of the following five years. He emphasised that in order to prevent foreign banks from driving local banks out of the market, they should work to increase the capability of local financial institutions. They emphasised that there is a predetermined process for this.

Solomon stated that this was handed to banks many years ago and that the institutions should allocate 2% of their normal budget for capacity building. Solomon also added that they will continue to be monitored in the same manner.

Source : EPA

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