By giving a cold shoulder to independent bank firms, The National Bank has given qualified privilege and tipped the balance towards governmental and privately-owned financial institutions having affiliation with the government.
Approached by The Ethiopian Herald, economist Eyesueswork Zafu made this remark. That the National Bank should give a kiss of life to the bank industry by settling itself in the hierarchy of independent ownership, objectivity, rule of law, accountability and transparency so as to cushion the cutthroat competition and to achieve high level of bank service satisfaction.
He stated that because of having draconian bank system and regulatory framework, the government and private owned banks are forced to encounter fierce competition and to head towards financial bankruptcy as well to lose their integrity by a third party.
Adding, he said that the private banks have not yet managed to secure their sovereignty’s fences due to the fact that many private financial institutions have hidden agendas, exercise double standard and serve two masters through labeling and affiliation with political parties, ethnic and religious backgrounds.
He remarked that policy reform is becoming mandatory to modernize the activities of financial services and secure their territorial sovereignty and integrity in order to ensure fair competition in the financial institutions. He stated that the government has shortcomings and intent to treat unequally and unfairly in provision and access of privilege qualifications and business opportunities.
“Supporting indigenous financial institutions is critical to strengthen their services ahead in a bid to render them competitive in cross-border finance transactions and help them a lot to have a niche in the arena of regional integration,” he said highlighting on facts on the ground.
About the existence of check fraud and money laundering, he noted that due to reluctant acts of the government in handling money laundering and check fraud, the monetary institutions, both governmental and private banks, are entitled to confirm the reliability of the check, when the amount is more than 50,000 Birr.
Via cellphones they have to contact the check donor, he pointed out. “ The government has failed in tackling the wrong activity of under invoicing deeds which are undertaken by many high-level officials in forms of importing many cars and raw materials for real estate consumptions,” he said.
The Ethiopian Herald, February 10/2019
BY MEHARI BEYENE
