Commercial Bank of Ethiopia
Encyclopedia
The Commercial Bank of Ethiopia (CBE) is the largest commercial bank
in Ethiopia
and had about Birr 73.7 billion (US$4.45 billion), in assets at the end of June 2010. At the time, the bank held approximately 63.5% of deposits and about 38% of all bank loans in the country. The bank has about 9, 000 employees who staff the headquarters and 301 branches
positioned in the main cities and regional towns, including 45 branches in Addis Ababa
. CBE recently opened new branches in the remote towns of Injibara
and Humera
.
, the central bank, and the Commercial Bank of Ethiopia (CBE). In 1958 the State Bank of Ethiopia established a branch in Sudan
that the Sudanese government nationalized in 1970. Then in 1980 the Government merged Addis Bank into the Commercial Bank of Ethiopia to make CBE the sole commercial bank in the country. (The government had created Addis Bank from the merger of the newly nationalized Addis Ababa Bank, and the Ethiopian operations of Banco di Roma and Banco di Napoli. Addis Ababa Bank was an affiliate that National and Grindlays
bank had established in 1963 and of which it owned 40%. At the time of nationalization Addis Ababa Bank had 26 branches.
In 1991 when Eritrea
achieved its independence, CBE lost its branches in Eritrea to nationalization. These branched formed the base for what became, in 1994 the Commercial Bank of Eritrea
. Also in 1994, the Ethiopian government reorganized and reestablished CBE.
A few years ago, the government restructured CBE and signed a contract with Royal Bank of Scotland
for management consultancy services. After the death of its former President, Mr. Gezahegn Yilma, the Board of Management appointed Mr Abie Sano as a new President of the Bank. Parliament recently increased the Bank's capital to 4 billion Ethiopian Birr. At some point CBE had a branch in Djibouti that it has since closed.
In January 2009, CBE received regulatory approval to open a branch in Juba
, Southern Sudan.
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
in Ethiopia
Ethiopia
Ethiopia , officially known as the Federal Democratic Republic of Ethiopia, is a country located in the Horn of Africa. It is the second-most populous nation in Africa, with over 82 million inhabitants, and the tenth-largest by area, occupying 1,100,000 km2...
and had about Birr 73.7 billion (US$4.45 billion), in assets at the end of June 2010. At the time, the bank held approximately 63.5% of deposits and about 38% of all bank loans in the country. The bank has about 9, 000 employees who staff the headquarters and 301 branches
Branch (banking)
A branch, banking center or financial center is a retail location where a bank, credit union, or other financial institution offers a wide array of face-to-face and automated services to its customers....
positioned in the main cities and regional towns, including 45 branches in Addis Ababa
Addis Ababa
Addis Ababa is the capital city of Ethiopia...
. CBE recently opened new branches in the remote towns of Injibara
Injibara
Injibara is a town in Ethiopia. It is the administrative center of the Agew Awi Zone in the Amhara Region. Injibara is located at , in Banja Woreda at an elevation of 2560 meters above sea level....
and Humera
Humera
Humera is a town in northern Ethiopia, near the borders of Sudan and Eritrea. Located in Mi'irabawi Zone of the Tigray Region, this town has a latitude and a longitude of . Humera is the administrative center of Kafta Humera woreda.- Overview :Humera is served by Humera Airport...
.
History
In 1963 the Ethiopian government split the State Bank of Ethiopia (est. 1942) into the National Bank of EthiopiaNational Bank of Ethiopia
The National Bank of Ethiopia is the central bank of Ethiopia. Its headquarters are in the capital city of Addis Ababa. The bank's name is abbreviated to NBE.-History:...
, the central bank, and the Commercial Bank of Ethiopia (CBE). In 1958 the State Bank of Ethiopia established a branch in Sudan
Sudan
Sudan , officially the Republic of the Sudan , is a country in North Africa, sometimes considered part of the Middle East politically. It is bordered by Egypt to the north, the Red Sea to the northeast, Eritrea and Ethiopia to the east, South Sudan to the south, the Central African Republic to the...
that the Sudanese government nationalized in 1970. Then in 1980 the Government merged Addis Bank into the Commercial Bank of Ethiopia to make CBE the sole commercial bank in the country. (The government had created Addis Bank from the merger of the newly nationalized Addis Ababa Bank, and the Ethiopian operations of Banco di Roma and Banco di Napoli. Addis Ababa Bank was an affiliate that National and Grindlays
Grindlays Bank
The Grindlays Bank was a major British overseas bank established in 1828.It operated mainly in British colonies, especially British India. After decolonization, it was a major foreign bank in India, Pakistan and other West Asian countries. As ANZ Grindlays Bank, it was for a while the largest...
bank had established in 1963 and of which it owned 40%. At the time of nationalization Addis Ababa Bank had 26 branches.
In 1991 when Eritrea
Eritrea
Eritrea , officially the State of Eritrea, is a country in the Horn of Africa. Eritrea derives it's name from the Greek word Erethria, meaning 'red land'. The capital is Asmara. It is bordered by Sudan in the west, Ethiopia in the south, and Djibouti in the southeast...
achieved its independence, CBE lost its branches in Eritrea to nationalization. These branched formed the base for what became, in 1994 the Commercial Bank of Eritrea
Commercial Bank of Eritrea
The Commercial Bank of Eritrea is the only banking institution in Eritrea with full retail commercial banking services. It is a government-owned bank with 17 branches throughout the country...
. Also in 1994, the Ethiopian government reorganized and reestablished CBE.
A few years ago, the government restructured CBE and signed a contract with Royal Bank of Scotland
Royal Bank of Scotland
The Royal Bank of Scotland Group is a British banking and insurance holding company in which the UK Government holds an 84% stake. This stake is held and managed through UK Financial Investments Limited, whose voting rights are limited to 75% in order for the bank to retain its listing on the...
for management consultancy services. After the death of its former President, Mr. Gezahegn Yilma, the Board of Management appointed Mr Abie Sano as a new President of the Bank. Parliament recently increased the Bank's capital to 4 billion Ethiopian Birr. At some point CBE had a branch in Djibouti that it has since closed.
In January 2009, CBE received regulatory approval to open a branch in Juba
Juba, Sudan
Juba is the capital and largest city of the Republic of South Sudan. It also serves as the capital of Central Equatoria, the smallest of the ten states of South Sudan. The city is situated on the White Nile and functions as the seat and metropolis of Juba County.- Population :In 2005, Juba's...
, Southern Sudan.