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Central Bank Approves Debub Global Interest Free Banking Venture

Dr. Tesfaye Boru

The National Bank of Ethiopia (NBE) has greenlighted Debub Global Bank's proposal to kick off an interest-free banking operation. Debub Global, which profited 1.1 billion Br in the last fiscal year, is going to avail Wadi'a saving, investment saving, financing services, international banking, foreign exchange services, bank guarantees, and remittance services through its IFB window. Several banks have already begun interest-free window operation services including, Dashen Bank, Bank of Abyssinia, Wegagen Bank, and the Cooperative Bank of Oromia. Debub Global, which was established in 2012, plans to begin operation in dedicated windows selected among its 110 branches in Addis Abeba and other cities. In 2008, the central bank issued a proclamation that allowed interest-free banking service, but it limited it to window service. A later directive issued, however, has relaxed the rules and allowed the establishment of fully-fledged interest-free banks, and the likes of ZamZam and Hijra are gearing up to start operations in the coming months.


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