Officials at the National Bank of Ethiopia (NBE) expect drafting process of the legal frameworks that would allow foreign competition enter the banking sector to be completed within two months. Local banks, he says, have held discussions with the central bank, and the draft is being revised based on their feedback. Currently at the NBE, the draft proposes four entry modalities for foreign banks into Ethiopia. The banks can open a branch, a commercial representative office, a subsidiary, or acquire up to 30 percent of a local bank’s shares. As a regulator of the country’s financial sector, NBE is responsible for institutional and policy frameworks.

Source: Ethiopian News April 29, 2023 08:21 UTC