By the end of fourth quarter 2020/21, according to National Bank of Ethiopia (NBE) report, there were 19 banks, of which 17 were private and 2 state owned. Note that the report did not include the recent joiner to the industry, Higra Bank.
Total Number of Banks: Counting Higra Bank, the number of banks grew from 18 to 20 with the entrance of 2 interest free banks to the industry in 2021. 18 were private and 2 state owned.
New Bank branches: 248 new bank branches were opened, only in the 4th quarter of 2021.
Total Bank Branches: 7,344.
Population to Bank Branch Ratio: 14,024.83
Location of Branch Banks: 34.5% of the total bank branches were in Addis Ababa.
State-owned Vs Private: Of the total bank branches, the share of state-owned banks was 27.3% while private banks took 72.7% share.
Total Capital of the Banking System: Birr 153.7 billion, of which state-owned banks accounted for 51.8% and private banks 48.2%. The share of Commercial Bank of Ethiopia (CBE) in total capital of the banking system was 32.7%.
Total Loan Disbursement: During the 4th quarter, Birr 105.9 billion was disbursed in fresh loans (including CBE bond purchases), indicating 66.2 percent annual growth. From the disbursed loan, private banks shares take 60.2%. The major beneficiaries of the fresh loans were industry (Birr 27.9 billion), international trade (Birr 23.6 billion), agriculture (Birr 14.5 billion), domestic trade (Birr 10.6 billion), housing & construction (Birr 9.8 billion), and personal (Birr 8.2 billion).
Borrowing: Total outstanding borrowing of the banking system stood at Birr 84.2 billion, showing 4.6% annual growth. About 81.3% were borrowed from domestic sources.
Total Deposit Liability: The banking deposit liability reached Birr 1.4 trillion, 30.2% annual growth.
Resources Mobilization: Slightly higher than USD 161 million. In 2021, total resources mobilized by the banking system (the sum of net change in deposit, loans collected and net change in borrowings) surged by 43% from last year.
Collections of Loans: During the 4th quarter review period, banks collected loans (including corporate bonds) close to Birr 67.5 billion; about 18.3% higher than last year same quarter. 63.5% of the total loan was collected by private banks and 95.3% of the total loan was collected from cooperatives and private enterprises.
Outstanding credit: Total outstanding credit of the banking system (including corporate bond) went up by 24.3% to Birr 1.3 trillion. About 99.7% of the total outstanding credit claims by private banks.
(Adopted from NBE 4th Quarter Bulletin)
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