3.1.

Background of private Banks in Ethiopia

Generally, there are five principal events, which may conveniently be taken as dividing
Ethiopian banking history into periods. The first event was establishment in 1905 of the Bank of
Abyssinia, marking the advent of banking into the country. The second event was Italian
occupation in 1936, when, following liquidation of the Bank of Ethiopia, a broad colonial
banking network, extended to encompass all Italian possessions in the Horn of Africa (Eritrea,
Ethiopia and Somalia) and closely linked with the metropolitan financial system, was set up in
the country. The third event was, in 1943, establishment of the State Bank of Ethiopia, marking
the rebirth of the Ethiopian independent banking. The fourth event was the revolution of 1974,
which wiped out the monarchy, nationalized companies and shaped a socialist banking two-
tier model suited to Ethiopia, the whole credit system being based on the central bank and
three state-owned financial institutions, each of them enjoying monopoly in its respective
market. The fifth event was the collapse of socialist regime followed by a financial sector reform
and liberalization according to Monetary and Banking Proclamation of 1994 (Mauri, 2003). This
condition a pave away for the emergence of private banks in Ethiopia for the first time and at the
same year the 1st private bank that is Awash International Bank is formed and followed by
Dashen, Abyssinia, Wegagen, United, NIB, Cooperatve Bank of Oromia, Lion, Oromia
International Banks, Abay banks are started their operation in 1995,1996,1997,1998, 1999,2004,
2006, 2007-8, 2010, respectively.

No Name Founded in
1. Awash International Bank 1994
2. Dashen Bank 1995
3. Bank of Abyssinia 1996

4. Wegagen Bank 1997

5. United 1998
6. NIB 1999
7. Cooperative Bank of Oromia 2004
8. Lion
9. Oromia International Banks
10. Abay bank
11.
12.
13.
14.
National Bank of Ethiopia Page
http://www.nbe.gov.et/financial/banks.html

1. Awash International Bank 1994

2. Commercial Bank of Ethiopia
3. Development Bank of Ethiopia

4. Construction and Business Bank

5. Dashen Bank 1995
6. Wegagen Bank 1997

7. Bank of Abyssinia 1996

8. United Bank 1998
9. Nib International Bank 1999

10. Cooperative Bank of Oromia

11. Lion International Bank
12. Zemen Bank
13. Oromia International Bank
14. Bunna International Bank
15. Berhan International Bank
16. Abay Bank S.C
17. Addis International Bank S.C

18. Debub Global Bank S.C

19. Enat Bank S.C