History of banking industry in ethiopia pdf free

The government of ethiopia is in the process of privatizing many of the stateowned businesses and moving toward a market economy. The current situation in ethiopia compared to most countries, ethiopia has taken a cautious approach toward the liberalization of its banking industry. Addis ababa university school of graduate studies the sources of the recent inflationary experience in ethiopia a thesis submitted to the school of graduate studies of addis ababa university in partial fulfillment of the requirements for the degree of master of science in economics international economics by. Particularly starting from the 1990s to the present days, numbers of banks have come into existence. Responding to the shocks direct and indirect of covid19 slowdown front page africa. Liberalisation of the banking industry in tanzania. 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.

Comparisons across the countries show there is a wide range of banking structures and. For all intents and purposes, its industry is closed and generally less developed than its regional peers. The bank was authorized to combine the functions of central banking issuing currency notes and coins and commercial banking. Electronic banking in ethiopia practices, opportunities. Ethiopias growth miracle, coupled with its large population and significant land mass, has attracted. The major aim of the research paper is to measure the quality of service offered by private banks operating in ethiopia. It gives you the history of banking before independence, ebanking, history of reserve bank, history of sbi bank and many more. Headquartered in addis ababa, the bank aims to promote ethiopia s economic development by financing agriculture, commerce, industry, and manufacturing activities. Most of the economic duties that would have been handled by the national banking system, in addition to regular banking business like loans and corporate finance, fell into the hands of large.

However, the banking, telecommunication and transportation sectors of the economy are dominated by governmentowned companies. Ethiopia is the largest and most populated country in the horn of africa. Oct 29, 2018 it is a paradox that there is 40 percent demand for interest free banking in ethiopia, but interest free banking is nowhere to meet that demand, says abdulkadir wahab aman, who earned a doctorate in economics from istanbuls y. In section two a brief overview of banking history in ethiopia is made. Summit pushes for interestfree banking in ethiopia. In contrast, financial repression discourages savings and contributes to misallocation of credit. There is also the development bank of ethiopia, which is not considered a commercial bank. Hawassa university college of business and economics school. History of northern ethiopia and the establishment of the italian colony or eritrea. This pdf is very important for banking exams like ibps po and clerk, sbi, rbi and others. A new report predicts double digit growth of ethiopias banking industry.

Nationaldevelopmentbanksndbshaveplayedadominantroleinthe. First, since the banking sector in ethiopia is young it will not be able to compete with more mature foreign banks that have more capital, professionally qualified and seasoned managers and employees, and better reputations. Origins and early development of banking in 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.

Financial sector in ethiopia ethiopian bankers association. World, economy, africa summit pushes for interest free banking in ethiopia muslims make up over 30 pct of ethiopias population, but lack of interest free banking leaves them without alternatives. Insurance policies marketed in the ethiopian insurance industry 269 iv. Development bank of ethiopia, formerly known as the agricultural and industrial development bank, operates as a specialized stateowned development financial institution in the country. This paper has examined the history of the ethiopian banking system. Certainly the banking industry in ethiopia is underdeveloped and therefore, there is an all immediate need to. Ethiopia industry, information about industry in ethiopia. Having the vision of bringing a new dynamism of the financial sector and the banking business in ethiopia. The chapter begins with an overview of the countrys economic status and describes the major social and macroeconomic performance for the study period 2004.

Chapter 1 addresses the question of why banks are regulated in order to establish the basic purposes, rationale, and goals for bank ing regulation, and to provide a framework for evaluating bank regulations. The structure and performance of ethiopia s financial sector. The banking industry accounts for about 95% of the total financial sector assets, implying that the financial sector is undeveloped. The commercial bank of ethiopia cbe is the largest commercial bank in ethiopia as of june 2015, it had about 303. Law of banking, negotiable instruments and insurance prepared by fasil alemayehu and merhatbeb teklemedhn 4 this material heavily depends on the commercial code of ethiopia, which is the main law governing these areas. Target populations of this study are customers and branch managers of the commercial banks in gondar city. The capital is addis ababa new flower, located almost at the centre of the country. Profile of insurance companies in ethiopia june 30, 2005 268 iv. The banking sector in ethiopia has been dominated by the stateowned commercial bank of ethiopia cbe. Especially after world war ii, tourism, banking, insurance, and transport began to contribute more to the. Agricultural and industrial development bank share company by taking. This event marked the introduction of banking in the country. In pre 1974 ethiopia, the financial system operated in a free market economic environment. Pdf the bank of abyssinia, established in 1905, was given a 50years concession by the.

Pdf bank service quality, customer satisfaction and. Especially after world war ii, tourism, banking, insurance, and transport began to. Insurance in ethiopia historical development, present status. Ethiopian bankers perception of electronic banking in. Electronic banking in ethiopia practices, opportunities and. Banking in ethiopia started in 1905, with the establishment of the bank of abyssinia that was owned by the. Ethiopia, housing and savings bank, agricultural and industrial development. The study used both quantitative and qualitative mixed research approach with a survey design to collect and analyze the data. Insurance in ethiopia historical development, present status and future challenges hailu zeleke august 2007. Feb 02, 2010 ethiopian industry, including both mining and manufacturing, constitutes approximately 12 percent of the gdp, while providing employment for 8 percent of the countrys labor force 1998 est.

Oct 09, 2019 the history of banking began when empires needed a way to pay for foreign goods and services, with something that could be exchanged more easily. Indira gandhi, thethen prime minister of india expressed the intention of the. The paper examines the practices, opportunities and challenges of ebanking services in ethiopia. All epayment methods share a number of common characteristics. Furthermore, iddir is a local association with long history, most widespread, commonly known in rural and. Electronicbanking in ethiopia practices, opportunities. Various issues and prospects in the industry are examined.

Moreover it allowed foreign banks to operate in ethiopia limiting their. Banking sector reform in ethiopia international journal of. By the 1960s, the indian banking industry has become an important tool to facilitate the. The bank of abyssinia, a private financial institution established in 1905 in cairo under egyptian law, was given a 50years concession for carrying out banking activity in ethiopia by the emperor. The economy of ethiopia is a mixed and transition economy with a large public sector. The birth and development of banking services in ethiopia. Situated in the horn of africa, ethiopia is bordered by eritrea to the north, sudan to the west, kenya to the south, somalia to the east and djibouti to the northeast. This piece of survey and descriptive study is conducted primarily by using secondary data. After this period many other banks were established. When governments set interest rates below the free market rate, the. Ethiopias commercial banking sector will post a steady expansion over 2017, with both loan and deposit growth continuing on a strong upward trend, according to business monitor international bmi latest report on banking industry of ethiopia.

This period witnessed the establishment, as most readers will know, of the countrys first bank. Summit pushes for interestfree banking in ethiopia daily sabah. Moreover, it tries to investigate the relationship between service quality, customer satisfaction and loyalty. Under haile selassie i reigned 193074, ethiopias economy enjoyed a modicum of free enterprise. Foreign insurance companies operating insurance business in ethiopia prior to the enactment of the 1970 insurance proclamation 267 iii. We take a deepdive into ethiopias banking sector and coveracross the following 70. Banking sector in ethiopia is expanding through time. History of insurance in ethiopia modern insurance service in ethiopia started in 1905. Sep 14, 2017 history of banking in india pdf gives the brief history of banking sector in india. Structure of the financial sector in ethiopia, rural financial systems in ethiopia. The country lies completely within the tropical latitudes and is relatively compact, with similar northsouth and eastwest dimensions. In example, the commercial bank of ethiopiathe largest bank in the country whose assets represent about 70% of the sectoraccounts for 67% of total deposits and 55% of loans and advances. This paper provides detailed information on banking structure, permissible banking activities, regulatory structure, deposit insurance schemes, and supervisory practices in each of the 15 european union countries, as well as in canada, japan, switzerland, and the united states.

Though the state owned banks are only three about one sixth of the total number of banks they still dominate the whole banking system in ethiopia. What%is%the%role%of%national%development%banks%in% late. Over the last ten years, the country has achieved doubledigit growth in real terms, averaging 10. To recommend appropriate actions to be taken to promote ebanking in ethiopia. The bank of ethiopia opened branches in dire dawa, gore, dessie, debre tabor and harrar. The governments rationale is based on the infant industry argument as follows. Insurance in ethiopia historical development, present. This will be followed by section three where the analysis of the financial. 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.

The majority shareholders of the bank of ethiopia were the emperor and the political elites of the time. 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. 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. List of free online banking courses, training and tutorials. Pdf origins and early development of banking in ethiopia.

Hawassa university college of business and economics. This paper discusses the role that has been played by the banking system especially after the arrival of private investors in the sector. May 31, 2019 several real schools offer free online access to courses covering a variety of banking concepts. The first two chapters of the report feature the country profile by giving general information on ethiopia and by thoroughly studying its economic state, including key macroeconomic indicators and their development trends. The financial sector in ethiopia is composed of the banking industry, insurance companies, microfinance institutions, saving and credit cooperatives and the informal financial sector. Despite strict government regulations through lending quota, bond buying, windfall tax and increased capital requirements, banks are reporting strong profit and paying high dividends. History of banking in india pdf gives the brief history of banking sector in india.

The purpose of this page providing information or awareness about interest free banking generally in the world particularly in ethiopia and. History of banking in ethiopia, bank of abyssinia, bank of ethiopia 1. A history of early twentieth century ethiopia, richard pankhurst, 1997. Land was given to the bank free of harges and permitted to build. The ethiopian institute of banking and insurance eibi 181 184. By the 1960s, the indian banking industry has become an important tool to facilitate the development of the indian economy. Strict regulations and increasing rental fees highlight the difficulty that private banks face in trying to grow the number of branches they operate throughout the country. The structure and performance of ethiopias financial sector 3. This report is a comprehensive research of insurance industry in ethiopia. Electronic banking in ethiopia practices, opportunities and challenges by gardachew worku, lecturer of accounting and finance, gondar university, ethiopia.

Evaluation of the financial performance of banking sectors. The structure and performance of ethiopias financial. The early history of banking in ethiopia, with its distinctive mixture of foreign and government financial institutions, is. The production and export of cash crops such as coffee were advanced, and importsubstituting manufactures such as textiles and footwear were established. Despite the problems, the domestic banking sector posted its highest growth rate in six years, along with accelerated branch expansions. Pdf the short life of the bank of ethiopia researchgate. In fact, the history of banking in ethiopia dates back to the turn of the century, when, in1905, the.

The history of banking and other financial institutions in ethiopia. Abstract internet banking is changing the banking industry, having the major effects on banking relationships. Commercial banking structure, regulation, and performance. When governments set interest rates below the freemarket rate, the. The structure and performance of ethiopias financial sector in the pre. The first privately owned company in banking business was the addis ababa bank s. Visit for more related articles at journal of internet banking and commerce.

Ethiopian industry, including both mining and manufacturing, constitutes approximately 12 percent of the gdp, while providing employment for 8 percent of the countrys labor force 1998 est. Ebrs samson hailu explores the reasons why this problem has come about and what should be done to solve it. Impact of ebanking on traditional banking services shilpan vyas school of computer science and information technology, singhania university, pacheri bari, jhunjhunu 333515 rajasthan, india. Ethiopia banking industry news monitoring service from ein news. 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. The monetary and banking proclamation no 831994, the licensing and.

The history of banking is intertwined with the history of money. Doc profile of the commercial bank of ethiopia yohannes. Currently there are 17 commercial banks in ethiopia, one state owned and 16 private. Under the derg regime, almost all of the major industries were owned exclusively by the state. Electronicbanking in ethiopia practices, opportunities and. The structure and performance of ethiopias financial sector. Ma gillivray, representative of the british owned national bank of egypt. Abstract this study aimed at identifying factors that affect e banking adoption in ethiopia, in case of the commercial banks in gondar city. Hawassa university college of business and economics school of management and accounting assessing the impact of core banking and service quality on customer satisfaction in commercial bank of ethiopia a case of bishofftu branch by. Ancient types of money known as grainmoney and food cattlemoney were used from a time of around at least 9000 bc, as two of the earliest things that could be used for the purposes of barter.

Introduction since 1992 the government of ethiopia has introduced a variety of reforms aimed at improving. The history of banking and other financial institutions in ethiopia free download as word doc. Ethiopian banking system is one of the most underdeveloped compared to the rest of the world. Although the banking industry in ethiopia has about hundred years of experience, it can be said that, the sector is not yet developed and is still in its infancy or a growing stage. Endalkachew abebe a research project submitted in partial fulfillment of the requirement for.

This article provides an overview of development of financial sector in ethiopia, including background and. Law of banking, negotiable instruments and insurance. Pdf factors affecting e banking adoption in ethiopia. Present status of the ethiopian insurance sector 233. Banks in ethiopia overview and guide to banks in ethiopia. For anyone considering a banking career in ethiopia, this list of banks in ethiopia is a helpful guide on where to start. Thehistoryofdevelopmentbanksinethiopiadatesbackto1908withthe. At the same time, it has emerged as a large employer, and a debate has ensured about the possibility to nationalise the banking industry. This paper highlights development of ethiopian banking from the beginning of xx century to1936. Background and structure of the financial sector in ethiopia 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. Before the commencement of modern insurance service in the country, there have been traditional practices by which people help each other whenever they face either financial difficulties or needs assistance. The commercial bank of ethiopia cbe, the largest bank in the. To analyze the status of electronic banking in ethiopia to investigate the main challenges and opportunities for ebanking in ethiopia. Commercial bank of ethiopia is the largest, controlling the majority assets of the industry.