Two senior executives of Dashen Bank have left to take the helms of newly-established financial institutions. Last week, Yared Mesfin, chief corporate banking officer, was approved by regulatory authorities to lead a recently incorporated private bank as president. Henok Kebede, former chief banking operation officer at Dashen, was appointed president of Amhara Bank a month ago.

Yared, 47, has been named president of Tsehay Bank, which has mobilised 734 million Br in paid-up capital from 373 shareholders, awaiting an operational permit from the central bank. The Bank's promoters plan to open for service this year.

Tsehay's promoters have appointed Yared after an intensive headhunt for the best suitable candidate, according to Tadesse Ayene, a promoter and board member at Tsehay.

"With his experience, we believe he would be a good fit for our Bank," Tadesse told Fortune.

Along with the President, the National Bank of Ethiopia (NBE) has approved 12 shareholders elected to serve Tsehay as directors.

Yared, a father of three, studied management at Addis Abeba University and later completed his post-graduate studies in business administration from Greenwich University of London. He began his banking career as a clerk with the Commercial Bank of Ethiopia (CBE), where he climbed to the position of district manager in Bahir Dar, with 50 branches, and North Addis Abeba with 80. Yared joined Dashen Bank in 2015 to serve as vice president of resource and facility management. He was appointed Chief Corporate Banking Officer four years later.

"I've gained sufficient administrative experience," said Yared.

His first tasks at Tsehay will be to procure a core banking system, set up branches, and prepare the Bank's long-term strategy. The President will also have to form his executive team.

Yared sees competition in the banking industry, coupled with the sizable capital and foreign currency requirements, as a challenge for new entrants into the industry such as Tsehay and Amhara banks.

As the arrival of the newly established financial institutions, dubbed by industry players as “fourth-generation banks," creates a ripple effect in the industry, banks that lose senior managers take rapid measures to fill the vacancies. Well-established banks such as Dashen and Awash are less likely to face challenges filling up executive spots, unlike newly formed banks, which have to pull human resources from the existing pool in the industry, observes Yared.