Damot Bank Promoters Opt for Dissolution

Sep 17 , 2022


[ssba-buttons]

The promoters of Damot Bank have decided to dissolve the would-be financial institutions after struggling to raise enough equity to meet the central bank's minimum paid-up capital threshold. Only three of over two dozen banks under formation managed to meet the window deadline to raise half a billion Birr in equity last November. Their promoters have since been forced to raise 10 times as much, dissolve or seek other options. Damot's promoters had begun raising equity in October 2020. Regulators have granted private banks in operation a seven-year window to comply with the updated capital threshold. Several, such as Awash Bank and the Bank of Abyssinia, have already met the requirement. However, most have yet to secure the equity. The issue is more pressing in light of a decision from a recent decision by the Council of Ministers permitting foreign investors into the financial sector for the first time in five decades.


Radar

Nib international Bank Faces Heavy Hit from Forex Revaluation, Pays 348 Million Br in Penalties

Nib International Bank S.C. (NIB) has reported a significant loss of 2.9 billion Br, primarily due to extraordinary foreign exchange revaluation losses, this past Saturday, during its annual shareholders meeting at the Millennium Hall on Africa avenue, Airport Road. The bank faced substantial penalties amounting to 348.4 million Br. These penalties included a 251 million Br fine for liquidity shortages and a 97.4 million Br charge for violations related to Real-Time Gross Settlement (RTGS) payme...


Radar

Railway Network Upgrade Positioned as Engine of Economic Transformation

The National Railway Business Summit took place at Skylight Hotel on October 21, 2025, signalling a historic step in modernising its railway network as a foundation for national development and regional connectivity. Government officials, industry leaders, investors, and experts from around the world convened to discuss infrastructure expansion, financing models, and technology adoption. Asma Redi, chief portfolio director at Ethiopian Investment Holdings, noted that the Ethiopian Railways Co...


Radar

Gold Prices Ease After Recent Surge

The price of gold, which surged sharply in recent weeks, has started to decline in the current selling market. Over the past 15 days, 21-carat gold has traded between 24,000 and 25,000 Br per gram for imported products and around 21,000 Br for local gold. Imported 18-carat gold sold for 21,000 Br, while local 18-carat pieces were priced at 19,000 Br. Traders note that the recent increase was twice as high as typical fluctuations, attributing the spike to export patterns from Arab countries. ...