CBE Wrestles with Past as Reforms Test the Future of State Banking

Abie Sano, the quietly tough president of the state-owned Commercial Bank of Ethiopia (CBE), is a man accustomed to steering through storms. He spoke candidly about the immense pressures and opportunities facing the country’s largest bank as it claws back lost market share, charts regulatory upheaval, and absorbs the aftershocks of an industry roiled by the conversion of microfinance institutions into commercial banks. Running a bank with a towering balance sheet, now stretching beyond 2.3 trillion Br, Abe discussed issues where the line between public duty and commercial logic is as blurred as ever. His account of the reforms, most notably the transfer of non-performing public debts to the Treasury and the rebalancing of the loan book towards the private sector, was tinged with both relief and resolve. However, CBE's President did not shy away from the bruising realities. A brief bank run, liquidity ratios skirting regulatory minimums, and the stinging loss of deposits as former microfinance clients defected to the competition were some of them. Yet, through this crucible, CBE claims to have emerged with a sharper risk appetite, a stronger capital base, and the confidence to stare down both private rivals and the spectre of foreign banks entering the domestic crowded financial market.

Sep 6 , 2025