ADDIS ABABA –The total deposits of commercial banks have reached 2.2 trillion Birr, the National Bank of Ethiopia (NBE) Governor said, commending the expansion of financial institutions, notably, banks in the country.
The Governor Mamo Mihretu said the above yesterday at the occasion where the transfer of Addis Credit and Savings Institution to Siket Bank was announced.
Mamo noted that the number of Ethiopian banks, including Siket which officially joined the industry yesterday, has reached 32, and the total deposits they have collected have reached 2.2 trillion Birr. In the last fiscal year, banks gave 548 billion Birr in new loans and the return loan they collected reached 401 billion Birr. “This indicates that the economy is healthy.”
Some 31 banks with 11,861 branches are currently operating in the country and have managed to register a total deposit of 2.2 trillion Birr. The banks as well as medium-level finance institutions are playing a commendable role on financial mobility, provisions of loans and nurturing the community’s saving and investment culture and providing ample jobs.
Citing the government’s consolidated efforts to increase the banks’ access and ensure inclusion by using digital financial services and products; he emphasized the contribution of the financial sector to the national economy.
Ethiopian banks are expected to focus on the use of technology, inclusiveness and accessibility. Due attention is also essential to enhance capital, lending capacity, technology and human resources. The banks should make the necessary arrangements in advance so that they will remain competitive in the advent of foreign banks’ entry.
The governor expressed optimism that Siket Bank will play its part in the overall development of the financial sector and the country by combining its experience in microfinance and the experience of other banks. “We will provide the necessary support to the successful operation of the bank.”
Addis Ababa Mayor Adanech Abiebie said the institution has played a notable role for the past 23 years in helping citizens to change livelihoods and expand the society’s saving culture. It has also helped many citizens to make significant economic contributions to the city beyond themselves.
She stated that the bank will embrace the previous customers and continue to strengthen the services it was providing as a credit and savings institution along with other banking services.
“The transformation of microfinance institutions into banks will have a significant role in the overall economic activity. Siket Bank will also add capacity and value to the sector. It requires focus to remain competitive by providing service that redeems the times and the city administration will provide the necessary assistance to this end.”
For DamtewAlemayehu, President of Siket Bank, the institution has made commendable contributions in providing micro finance services including saving and credit and helping a large section of the society to overcome poverty and unemployment.
Especially in the last 5 years, by making changes in the policy designing and implementing different strategies, the total amount of wealth, which was 4.1 billion Birr, has increased to 12.3 billion. The amount of foreign loans increased from 2.7 billion Birr to 7.7 billion Birr, and the amount of net savings increased from 1.6 billion to 3.6 billion Birr.
Also, the total capital amount has been increased from 1.49 to 5.99 billion Birr.
We are working tirelessly to open branches that meet the requirements of the National Bank and attain other important requirements. Siket joined the industry with 10 billion Birr signed and four billion Birr paid-up capital, it was learned.
BY ASHENAFI ANIMUT
THE ETHIOPIAN HERALD EDITION 20 AUGUST 2023
