With objective of decreasing nonperforming loans of banks, the National Bank of Ethiopia is set to introduce a centralized database with credit information of all bank borrowers in the country. So far list of 3 million bank borrowers in the country is already included in the centralized database the country is set to introduce, according to Yinager Dessie (PhD) Governor of the country’s financial sector regulator agency, National Bank of Ethiopia (NBE). Presenting NBE’s first quarter performance report on Wednesday, Dr. Yinager stated that the database will allow banks in Ethiopia to know their clients credit status and make the right decision and reduce the risk of having high number of nonperforming loans. In Ethiopia currently 18 commercial banks and one development (policy) bank are in the market, of which the state owned Commercial Bank of Ethiopia has the largest market share over 50 percent. In addition there are also 46 microfinance institutions in the country, of which some are set to transform themselves into commercial bank.

Source: News Business Ethiopia October 22, 2020 12:33 UTC