Films Review | Feb 22,2020
Bank clerks count 900,000 Br worth of bills stashed on top of one another on a busy day at the main branch of one of the private banks.
In the main hall of the bank, the scene was not as calm, as tellers try to tell customers that the “system is down,” a response that has been plentiful since mid-November.
In many cases, this really meant that the branch did not have the cash to process large value transactions, a challenge faced by almost all of the commercial banks in the city. Although the National Bank of Ethiopia (NBE) requires banks to maintain liquid assets of at least 15pc of their net current liabilities, the current lack of cash at some banks dwindled to as low as 10pc.
A liquidity problem at this time of the year is not unusual. The period between October and February is a tax season, as well as a time when banks pay dividends to their shareholders. The current Belg harvest season is no help either given that farmers make most of their transactions using cash. Bank executives also blame the government for not dispersing as much cash as it used to into the economy. Despite the criticism, the central bank availed cash to the banks in the form of loans. The most recent was the disbursement of nine billion Birr to 12 of the 16 private banks in the country.
The loans did not fully address the problem, however, and some banks are cutting down on additional loans. But the situation will not remain as gloomy as it is now, according to experts. Alemayehu Geda (Prof.), a macroeconomist, projects that the cash crunch will not last or cause them insolvency, especially given the lifting of the 27pc mandatory bill purchase imposed on private banks by the regulator.
You can read the full story here
PUBLISHED ON Jan 25,2020 [ VOL 20 , NO 1030]
Films Review | Feb 22,2020
Covid-19 | May 16,2020
Fortune News | May 20,2020
Fortune News | Aug 01,2020
Fortune News | Feb 26,2022
Fortune News | May 23,2020
Fortune News | Jul 30,2022
Editorial | Feb 27,2021
Fortune News | Apr 16,2022
Radar | Oct 03,2020
July 2 , 2022 . By RUTH TAYE
On a rainy afternoon last week, a coffee processing facility in the capital's Akaki-Qality District was abuzz with activ...
November 27 , 2021
Against my will, I have witnessed the most terrible defeat of reason and the most sa...
November 13 , 2021
Plans and reality do not always gel. They rarely do in a fast-moving world. Every act...
October 16 , 2021 . By HAWI DADHI
Residing in a country with no capital market, an organised marketplace for trading se...
Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the me...
When the country’s most senior diplomats and envoys return back to their posts after two-week debriefings, they leave behind a point or tw...
August 6 , 2022
Few initiatives by the administration of Prime Minister Abiy Ahmed (PhD) have been pu...
July 30 , 2022
Ethiopia’s banking industry is not merely underdeveloped. It has historically regre...
July 23 , 2022
The flip side of a government spending plan is financing. Behind the campaign promise...
July 17 , 2022
Messrs Ahmed Shide and Eyob Tekalegn (PhD), minister and state minister for Finance,...
PM Abiy Ahmed (PhD) at a Gala Dinner Called for the Awarding of the Félix Houphouët-Boigny Peace Prize
May 6 , 2019
As the rainy season gets wetter, accompanied by heavier rain showers, it is not unusual to see folks with umbrellas. Little do they know tha...
Or see contact page