In ethiopia cash is still the most dominant medium of exchange and electronic banking is not well known, let alone used for transacting banking business. The history of modern banking in ethiopia goes back to 1900 when an agreement was reached in 1905 between emperor minilik ii and mr. Ethiopia opens up banking sector to its diaspora reuters. Ethiopian banking law archives ethiopian legal brief. The modern e banking methods like atms, debit cards, credit cards, tele banking, internet banking, mobile banking and others are new to the ethiopian banking sector. This event marked the introduction of banking in the country. In fact, the history of banking in ethiopia dates back to the turn of the century, when, in1905, the. The bank carried our typical commercial banking business. Brief history, energy demand and its implication on. On this page you can read or download pdf commercial bank of ethiopia apptitude exam question and answer in pdf format. The banking business was the first financial business started in ethiopia after two decades following the establishment of the capital city, addis ababa, in 1886. The ethiopian government allowed the establishment of private banks and insurance companies in 1994, but continues to prohibit foreign ownership in this sector. People have lived in ethiopia for thousands of years. Electronic banking in ethiopia practices, opportunities and challenges by gardachew worku, lecturer of accounting and finance, gondar university, ethiopia.
But a well structured banking system started to evolve starting in. This paper has examined the history of the ethiopian banking system. The ethiopian banking sector is currently comprised of a central bank national bank of ethiopia or nbe, three governmentowned banks. Coronavirus counter with new cases, historical data, and info. These dimensions of ethiopian banking sector measured using ratio of private sector credit to gdp, demographic and geographic distribution of banks branch es, interest rate spread, concentration ratio and herfindahlhirschman index. Wider research paper 2006112 the structure and performance. Pdf commercial bank of ethiopia apptitude exam question. In addition, it restructured the two development banks as commercial banks, and introduced a new banking and monetary proclamation that gave more autonomy and further clarified the national bank of ethiopias activities as the regulator and supervisor of the banking sector. A bank is generally understood as an institution which provides fundamental banking services such as accepting deposits and providing loans.
Issuing authority these directives are issued by the national bank of. Electronicbanking in ethiopia practices, opportunities. The ethiopian government believes that information technology has the power to counteract poverty. It is small, relatively undeveloped, closed and characterized by a large share of state ownership. This paper highlights development of ethiopian banking from the beginning of xx century to1936. Commercial bank of ethiopia is the largest, controlling the majority assets of the industry. There is also the development bank of ethiopia, which is not considered a commercial bank. Particular attention is given to the new structure set up with the reorganization of the financial. The paper examines the practices, opportunities and challenges of ebanking services in ethiopia. Sector banking in ethiopias future economic growth tom keatinge over the past decade, ethiopia has achieved impressive economic growth averaging close to 11 percent annually.
The application of software and technology is inevitable in the present competitive banking industry. The first ethiopian orthodox church zion mariam is african oldest church. To put the extraordinary growth of ethiopian mfis in perspective, as of december. Origins and early development of banking in ethiopia by. The ethiopian government has legalized a mobile and agent banking regulatory framework to permit the countrys banks and microfinance institutions to offer various financial services through the use of mobile devices and agents as delivery channels effective 1 january 20. To identify the risks faced by the banking industry. The monetary banking reform in ethiopia after liberation in 1941 was an event logical, inevitable and predictable.
Electronic banking facilities provided by most ethiopian banks are very basic. Coronavirus live update live statistics and coronavirus news tracking the number of confirmed cases, recovered patients, and death toll by country due to the covid 19 coronavirus from wuhan, china. In ethiopia cash is still the most dominant medium of exchange and electronicbanking is not well known, let alone used for transacting banking business. The new ethiopian government merely shifted, therefore, from owning most of the banking system to owning it completely. The structure and performance of ethiopias financial sector.
This has a paramount implication for the growth prospects of e. Ethiopian banking history, in its modern sense, began towards the end of the reign of emperor menilek. Financial performance of the ethiopian banking sector. History of northern ethiopia and the establishment of the italian colony or eritrea. Introduction many economists have identified federal deposit insurance as an important contributor to the large number of bank and savings and loan failures in recent years.
The ethiopian banking industry as a whole has a net work of 521 branches at. The bank of abyssinia, established in 1905, was given a 50years concession by the emperor menelek ii. The early history of banking in ethiopia, with its distinctive mixture of foreign and government financial institutions, is briefly described in section 2. Nov 28, 2015 on this page you can read or download history text book for grade 9 ethiopia pdf in pdf format. Development bank of ethiopia carbon initiative for development cidev component 3 of ethiopia additional financing for energy access project environmental and social management framework esmf for ethiopia offgrid renewable energy program and ethiopia clean cooking energy program final february 2017 addis ababa, ethiopia. The government is working with us technology firm cisco to provide universal net connectivity for the country over the next few years. Ethiopian bankers perception of electronic banking in. Country financial accountability assessment ethiopia. All trademarks and s on this website are property of their respective owners. However ebanking facilities provided are at par with those in the region.
Banking in ethiopia started in 1905, with the establishment of the bank of abyssinia that was owned by the ethiopian government in partnership with the national bank of egypt then under british rule. This paper highlights development of ethiopian banking from the beginning of xx century to 1936. Law of banking, negotiable instruments and insurance. The ethiopian microfinance industry has undergone tremendous growth and development in a very short period of time. After this period many other banks were established. Today, 20 registered mfis provide savings and credit services to more than 500,000 households in rural and urban areas across the country. The structure and performance of ethiopias financial. Ethiopia banking systemsethiopia banking systems includes special features of this countrys banking system and ruleslaws that might impact u.
This period witnessed the establishment, as most readers will know, of the countrys first bank. The paper examines the evolution up to the beginning of the 70s of the ethiopian banking system. The country financial accountability assessment cfaa for ethiopia was undertaken between april 2001 and november 2002, culminating in the incountry mission carried out over a threeweek period in september and early october 2002 by a joint team of federal govemment of ethiopia officials, world bank staff, and a number of donorfunded. Financial sector in ethiopia ethiopian bankers association. The structure and performance of ethiopias financial sector 3 commercial and central bank until 1963 when it was dissolved into todays national bank of ethiopia the central bank, re established in 1976 and the commercial bank of ethiopia, cbe henceforth. Currently there are 17 commercial banks in ethiopia, one state owned and 16 private. If you dont see any interesting for you, use our search form on. The law will enable the ethiopian born diaspora to take part in the economic growth of the country, said lemlem hadgo, chair of the. Licensing and supervision of banking business directives no. These were produced by the greeks in ionia, in the western part of modern turkey not very far from the city of ephesus. This is followed with an analysis of the financial sector in the pre and postreform periods in section 3.
Ethiopian grade 11 history student text book to read. In ethiopia cash is still the most dominant medium of exchange and electronic banking is not well known, let alone used for transacting banking issues. Ethiopian banking system is one of the most underdeveloped compared to the rest of the world. The east india company established the bank of bengalcalcutta 1809, bank of bombay 1840 and bank of madras 1843. Electronic banking in ethiopia practices, opportunities. Law of banking, negotiable instruments and insurance prepared by fasil alemayehu and merhatbeb teklemedhn 3 this teaching material, which is prepared and presented in the form of a compilation, is organized in three parts based on the three areas of law it incorporates, i.
This institution was engaged in issuing notes as well as in any kind of commercial banking business. The next bank was bank of hindustan which was established in 1870. In addition, it restructured the two development banks as commercial banks, and introduced a new banking and monetary proclamation that gave more autonomy and further clarified the national bank of ethiopias activities as the. Origins and early development of banking in ethiopia. Nov 23, 2015 on this page you can read or download ethiopian grade 11 history student text book to read in pdf format. The choice in money matter was to establish a national monetary unit, the ethiopian dollar, instead of keeping the country inside the east african shilling area.
Bounded by sudan to the west and north, kenya to the south, somalia to the southeast, and eritrea and djibouti to the northeast, ethiopia is a pivotal country in. Pdf the short life of the bank of ethiopia arnaldo. Even so, agricultural lending made up only 8 percent of the total value of outstanding loans. The birth and development of banking services in ethiopia. Free pdf book preliminary notes on ancient ethiopian. The chapter begins with an overview of the countrys economic status and describes the major social and macroeconomic performance for the study period 2004. However the first well known kingdom in ethiopia rose in the first century ad. However e banking facilities provided are at par with those in the region. Banking reform in ethiopia charles harvey summary the monopoly governmentowned banks in ethiopia remained relatively sound throughout the period of socialist government. Few events in the modern history of ethiopia have had. In ancient greek myth and history two kings in that region, midas and.
E banking which refers to the use of modern technology that. Electronic banking in ethiopia practices, opportunities and. Characteristics of the banking sector in ethiopia currently, the banking sector in ethiopia is in a rudimentary and fragile state. Collected from the bible and ancient history and modern history. To trace out the process and system of risk management. If you dont see any interesting for you, use our search form on bottom v. The goe allowed the establishment of private banks and insurance companies in 1994, but does not yet permit foreign ownership in this sector. Nevertheless ethiopia is an african empire and the modern history of ethiopia is. The first privately owned company in banking business was the addis ababa bank s.
A history of the ancient black races including the black hebrew by rudolph windsor light and truth by r. Ethiopian government merely shifted, therefore, from owning most of. Called the bank of abyssinia, or in amharic yeityopya bank, it was an affiliate of the national bank of egypt, and was founded in 1905. In ethiopia cash is still the most dominant medium of exchange and electronicbanking is not well known, let alone used for transacting banking issues. The commercial bank of ethiopia cbe is the largest commercial bank in ethiopia as of june 2015, it had about 303. Electronicbanking in ethiopia practices, opportunities and. The paper examines the practices, opportunities and challenges of e banking services in ethiopia. Addis ababa i think we do not have a competitive but rather a cooperative advantage, says meaza ashenafi, who is the chairperson of enat bank an ethiopian privately owned bank established with an intention of empowering women of ethiopia. In fact, the history of banking in ethiopia dates back to the turn of the century, when, in1905, the bank of abyssinia was established in addis ababa, under the reign of menelek ii.
Different paths, however could had be followed at that moment. The ethiopian banking sector is currently comprised of a central bank the national bank of ethiopia or nbe, one state owned development bank, a government owned commercial bank and sixteen private banks. By 100 ad a kingdom called axum existed in ethiopia. Objectives the study the following are the objectives of the study.
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