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{{short description|Largest bank in Ethiopia}}
{{Infobox_Company |
{{Use dmy dates|date=August 2020}}
⚫ company_name = Commercial Bank of Ethiopia |
{{Infobox company
company_logo = |
⚫ | name = Commercial Bank of Ethiopia
company_type = Government Owned|
| native_name = የኢትዮጵያ ንግድ ባንክ
company_slogan = |
| native_name_lang = am
⚫ foundation = 1942|
| logo = CBE SA.png
location = ] {{flagicon|Ethiopia}}|
| image =
key_people = |
| image_size =
⚫ num_employees = ~ |
| image_caption =
revenue = ~ |
| type = ]
⚫ industry = ]|
| num_locations = 1,948
⚫ products = ] |
| num_locations_year = 2023
⚫ homepage = http://www.combanketh.com/
| key_people = ] (President)
⚫ | industry = Finance
⚫ | products = ]
| revenue = {{Unbulleted list|{{Increase}} 163.2 billion ]<ref name=:2>{{cite web |title=News: CBE stands tall with its deposit surpassing the one trillion birr mark|url=https://addisstandard.com/news-cbe-stands-tall-with-its-deposit-surpassing-the-one-trillion-birr-mark/ |website=addisstandard.com |publisher=Addis Standard |access-date=17 August 2023}}</ref> (2023)}}
| profit = ] 10.32&nbsp;billion (June 2018)
| assets = {{Unbulleted list|{{Increase}} 1.3 trillion ]<ref name=":2" /> (2023)}}
| equity = <!--] ------ billion (June 2018)-->
⚫ | num_employees = 34,879 permanent
⚫ | foundation = {{start date and age|1942|8|26|df=y}}
| location = ], Gambia St, ], Ethiopia
⚫ | homepage = {{URL|www.combanketh.et}}
}} }}
The '''Commercial Bank of Ethiopia''' ('''CBE''') is the largest ] in Ethiopia. As of June 2021, it had about 1.1 trillion ] in assets and held approximately 67% of deposits and about 53% of all bank loans in the country. The bank has around more than 35,000 employees as of June 2022, who staff its headquarters and its over 1000+ ] positioned in the main cities and regional towns.<ref>{{Cite web |title=Commercial Bank of Ethiopia Profile 2014/15 |url=http://www.combanketh.et/AboutUs/CompanyProfile.aspx |access-date=8 October 2016 |archive-url=https://web.archive.org/web/20141231104030/http://www.combanketh.et/AboutUs/CompanyProfile.aspx |archive-date=31 December 2014}}</ref> The latter include 120 branches in the national capital ]. With the opening of a branch in the ] in the ], CBE's banking network has reached online 783 branches.{{cn|date=November 2024 |reason=Original source was accessed in 2018}} The bank has reached more than 1950 branches as of 10 August 2022.{{cn|date=November 2024 |reason=Original source was accessed in 2018}}


The bank also operates two branches in ]. It is contemplating re-opening a branch in Djibouti, and opening branches in Dubai and Washington, DC, all to serve the Ethiopian diaspora.
The '''Commercial Bank of Ethiopia''' is the largest bank in ] and has about Birr 49 billion in assets (end-June 2008), accounting for some 63.5% of deposits and 38% or so loans. The bank has about 8000 employees who staff the headquarters and 205 ] positioned in the main cities and regional towns, including 45 branches in ]. The Bank recently opened new branches in the remote towns of ] and ]. The bank had one branch in ], which ceased operation recently.

The bank is pioneer to introduce modern banking to ] and credited for playing a catalytic role in the economic progress and development of the country. It is also the first bank in Ethiopia to introduce ATM service for local users.<ref></ref>


==History== ==History==
After the ] victory over ] during ], the ] issued a proclamation on 26 August 1942 that established the State Bank of Ethiopia (SBE).<ref>{{Cite journal |last=Mauri |first=Arnaldo |date=September 2009 |title=The re-establishment of the national monetary and banking system in Ethiopia 1941–1963 |url=http://www.tandfonline.com/doi/abs/10.1080/10113430909511220 |journal=South African Journal of Economic History |language=en |volume=24 |issue=2 |pages=82–130 |doi=10.1080/10113430909511220 |s2cid=154009798 |issn=1011-3436}}</ref> SBE commenced full operations on 15 April 1943 with two branches and 43 staff. It served both as Ethiopia's central bank, with the power to issue banknotes and coins as the agent of the ], and as the principal commercial bank in the country. In 1945 the Ethiopian government granted the bank the sole right of issuing currency. The first governor of the bank was an American, ]. He inaugurated the new national currency, which owed its successful introduction to the ]. The United States provided the silver for 50-cent coins, whose intrinsic value ensured popular acceptance of the new paper money to a population used to the circulation of the silver ]. In 1958, the State Bank of Ethiopia established a branch in ], Sudan.<ref name=":0">{{Cite journal|last=Mauri|first=Arnaldo|date=16 May 2008|title=The Re-Establishment of the Ethiopia's Monetary and Banking Systems|url=http://wp.demm.unimi.it/files/wp/2008/DEMM-2008_011wp.pdf|journal=Departmental Working Papers|id=n. 2008–11|access-date=28 March 2017|archive-date=5 March 2022|archive-url=https://web.archive.org/web/20220305134658/http://wp.demm.unimi.it/files/wp/2008/DEMM-2008_011wp.pdf|url-status=dead}}</ref> Over time SBD's branch network grew to number 21 branches.<ref name=":1">{{Cite book |last1=Shinn |first1=David H. |url=https://books.google.com/books?id=WU92d6sB8JAC |title=Historical Dictionary of Ethiopia |last2=Ofcansky |first2=Thomas P. |date=1 April 2013 |publisher=Scarecrow Press |isbn=9780810874572 |pages=67–69 |language=en}}</ref>


In the 1950s, SBE established a branch in Djibouti.<ref name=AF>''Addis Fortune'', – accessed 27 March 2015.</ref> In 1920 the ] had opened a transit office in ]. At some point after the creation of the State Bank of Ethiopia it reopened the transit office, which in time became a branch.
⚫ In 1963 the Ethiopian government split the State Bank of Ethiopia (est. 1942) into the ], the central bank, and the Commercial Bank of Ethiopia (CBE). In 1958 the State Bank of Ethiopia established a branch in ] 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 ] and ]. Addis Ababa Bank was an affiliate that ] bank had established in 1963 and of which it owned 40%. At the time of nationalization Addis Ababa Bank had 26 branches.)
]
In 1963, the Ethiopian government split the State Bank of Ethiopia into two banks, the ] (the central bank), and the Commercial Bank of Ethiopia (CBE).<ref>{{cite journal|last=BRIMMER|first=Andrew F.|title=Banking and Finance in the Sudan |journal=South African Journal of Economics|volume=28|year=1960|issue=28|pages=23–34|doi=10.1111/j.1813-6982.1960.tb01848.x}}</ref> Seven years later, the Sudanese government nationalized the Commercial Bank of Ethiopia's branch in Khartoum that had originally been the Sudan branch of SBD.<ref name=":0" />


⚫ The Ethiopian government merged Addis Bank into the Commercial Bank of Ethiopia in 1980 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 the ] and ]. Addis Ababa Bank was an affiliate that ] Bank had established in 1963 and of which it owned 40%. At the time of nationalization, Addis Ababa Bank had 26 branches. The merger of Addis Ababa Bank with CBE made CBE the sole commercial bank in Ethiopia, with 128 branches and 3,633 employees.<ref name=":1" />
⚫ In 1991 when ] achieved its independence, CBE lost its branches in Eritrea to nationalization. These branched formed the base for what became, in 1994 the ]. Also in 1994, the Ethiopian government reorganized and reestablished CBE.


⚫ In 1991, when ] achieved its independence, the ] nationalized the branches there. In 1994 these branches formed the basis for what became the ]. Also in 1994, the Ethiopian government reorganized and reestablished CBE.<ref name=":1" />
A few years ago, the government restructured CBE and signed a contract with ] 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.


In 2004, CBE closed its branch in Djibouti due to problems with loan losses.<ref name=AF/>
In January 2009, Commercial Bank of Ethiopia received regulatory approval to open a branch in ], ]. {{clr}}


In January 2009, CBE received regulatory approval to open a branch in ], ].<ref>{{cite news|last=ALEMU|first=HILINA|title=Ethiopia: CBE Poised for Venture into South Sudan|url=http://allafrica.com/stories/200901191463.html|access-date=21 January 2013|newspaper=allAfrica.com|date=18 January 2009}}</ref> CBE expanded its presence in South Sudan to five branches in Juba and ], but ongoing conflict in the country has forced CBE to close all but two branches in Juba.<ref name=AF/>
⚫ ==External links==
* ]
] under construction in 2020]]
]
In February 2022, the government restructured CBE and signed a contract with ] for management consultancy services. After the death of its former President Gezahegn Yilma, the Board of Management appointed Abie Sano as a new President of the Bank. The ] recently increased the bank's capital to 4&nbsp;billion Ethiopian birr. The bank has reached 1284 branches as of 10 August 2018.{{vn|date=November 2024|reason this item is not mentioned in referenced source.}}<ref name="Commercial Bank of Ethiopia">{{cite web |title=Commercial Bank of Ethiopia |url=http://www.combanketh.et |website=Commercial Bank of Ethiopia |access-date=22 August 2018 |archive-url=https://web.archive.org/web/20180822065616/http://www.combanketh.et/ |archive-date=22 August 2018 |url-status=deviated}}</ref>

==Efficiency==

Comparing with other domestically owned private commercial banks, Commercial Bank of Ethiopia is operating technically more efficiently in using inputs. However, for the past three or more decades, the bank has been protected by Ethiopian government from domestic competitive pressures in different ways. One form of such protection is that to put the bank to be a sole mobilizer and administrator of almost all low cost public funds. In fact, the bank has been serving as a primary source of funds for almost every mega projects of Ethiopian government, but at the cost of credit misallocation.<ref>{{cite journal |author1=Getinet Chane, B. |author2=Yohannes Dalalo, D. |author3=Dereja Gebremichael, B. |year=2024 |title=Technical and allocative efficiency of commercial banks in Ethiopia |journal=Cogent Economics & Finance |volume=12 |issue=1 |at=2319173 |doi=10.1080/23322039.2024.2319173 |doi-access=free}}</ref>

== 2024 glitch incident ==
⚫ {{Main article|2024 Commercial Bank of Ethiopia glitch incident}}
On 15 March 2024, reports were circulated on social media that the bank was compromised for night between 12 a.m. and 3 a.m. Users can transfer large amount of money that their account don't have and access ATM machines without actual deposit. Elias Meseret, an ] journalist stated on social media that he got witnesses who knew the crime. CBE also stated that it affected the branch level as well as the mobile banking system, particularly the CBE online service. The bank also dismissed the social media claims that ATM system was restored to provide "digital banking".<ref>{{Cite web |last=Account |date=2024-03-17 |title=Ethiopia's state bank system compromised for hours ; loss undisclosed |url=https://borkena.com/2024/03/16/ethiopias-state-bank-system-compromised-for-hours-loss-undisclosed/ |access-date=2024-03-17 |website=Borkena Ethiopian News |language=en-US}}</ref>

== See also ==
{{Portal|Banks}}
* ]


==References== ==References==
{{reflist}}
*
* Brimmer, Andrew F. 1960. Banking and Finance in the Sudan. ''South African Journal of Economics'' 28 (1), 23-34.
*


⚫ ==External links==
⚫ ]
*
]
]


{{coord missing|Ethiopia}}


{{authority control}}
{{Ethiopia-stub}}


] ]
⚫ ]
⚫ ]
]
]
]
]
]

Latest revision as of 01:34, 22 December 2024

Largest bank in Ethiopia

Commercial Bank of Ethiopia
Native nameየኢትዮጵያ ንግድ ባንክ
Company typeState owned enterprise
IndustryFinance
Founded26 August 1942; 82 years ago (1942-08-26)
HeadquartersCommercial Bank of Ethiopia Headquarters, Gambia St, Addis Ababa, Ethiopia
Number of locations1,948 (2023)
Key peopleAbe Sano (President)
ProductsFinancial services
Revenue
  • Increase 163.2 billion birr (2023)
Net incomeBirr 10.32 billion (June 2018)
Total assets
  • Increase 1.3 trillion birr (2023)
Number of employees34,879 permanent
Websitewww.combanketh.et

The Commercial Bank of Ethiopia (CBE) is the largest commercial bank in Ethiopia. As of June 2021, it had about 1.1 trillion birr in assets and held approximately 67% of deposits and about 53% of all bank loans in the country. The bank has around more than 35,000 employees as of June 2022, who staff its headquarters and its over 1000+ branches positioned in the main cities and regional towns. The latter include 120 branches in the national capital Addis Ababa. With the opening of a branch in the Gechi in the Illubabor Zone, CBE's banking network has reached online 783 branches. The bank has reached more than 1950 branches as of 10 August 2022.

The bank also operates two branches in South Sudan. It is contemplating re-opening a branch in Djibouti, and opening branches in Dubai and Washington, DC, all to serve the Ethiopian diaspora.

The bank is pioneer to introduce modern banking to Ethiopia and credited for playing a catalytic role in the economic progress and development of the country. It is also the first bank in Ethiopia to introduce ATM service for local users.

History

After the Ethiopian victory over Italy during World War II, the new government issued a proclamation on 26 August 1942 that established the State Bank of Ethiopia (SBE). SBE commenced full operations on 15 April 1943 with two branches and 43 staff. It served both as Ethiopia's central bank, with the power to issue banknotes and coins as the agent of the Ministry of Finance, and as the principal commercial bank in the country. In 1945 the Ethiopian government granted the bank the sole right of issuing currency. The first governor of the bank was an American, George Blowers. He inaugurated the new national currency, which owed its successful introduction to the United States. The United States provided the silver for 50-cent coins, whose intrinsic value ensured popular acceptance of the new paper money to a population used to the circulation of the silver Maria Theresa thaler. In 1958, the State Bank of Ethiopia established a branch in Khartoum, Sudan. Over time SBD's branch network grew to number 21 branches.

In the 1950s, SBE established a branch in Djibouti. In 1920 the Bank of Abyssinia had opened a transit office in Djibouti. At some point after the creation of the State Bank of Ethiopia it reopened the transit office, which in time became a branch.

CBE in 1969

In 1963, the Ethiopian government split the State Bank of Ethiopia into two banks, the National Bank of Ethiopia (the central bank), and the Commercial Bank of Ethiopia (CBE). Seven years later, the Sudanese government nationalized the Commercial Bank of Ethiopia's branch in Khartoum that had originally been the Sudan branch of SBD.

The Ethiopian government merged Addis Bank into the Commercial Bank of Ethiopia in 1980 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 the 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. The merger of Addis Ababa Bank with CBE made CBE the sole commercial bank in Ethiopia, with 128 branches and 3,633 employees.

In 1991, when Eritrea achieved its independence, the Eritrean government nationalized the branches there. In 1994 these branches formed the basis for what became the Commercial Bank of Eritrea. Also in 1994, the Ethiopian government reorganized and reestablished CBE.

In 2004, CBE closed its branch in Djibouti due to problems with loan losses.

In January 2009, CBE received regulatory approval to open a branch in Juba, Southern Sudan. CBE expanded its presence in South Sudan to five branches in Juba and Malakal, but ongoing conflict in the country has forced CBE to close all but two branches in Juba.

Former headquarter of CBE until 2022
The Commercial Bank of Ethiopia Headquarters under construction in 2020
Completed CBE building (on the left side) on 26 February 2022, becoming the tallest skyscraper in Ethiopia and in East Africa.

In February 2022, the government restructured CBE and signed a contract with Royal Bank of Scotland for management consultancy services. After the death of its former President Gezahegn Yilma, the Board of Management appointed Abie Sano as a new President of the Bank. The Parliament recently increased the bank's capital to 4 billion Ethiopian birr. The bank has reached 1284 branches as of 10 August 2018.

Efficiency

Comparing with other domestically owned private commercial banks, Commercial Bank of Ethiopia is operating technically more efficiently in using inputs. However, for the past three or more decades, the bank has been protected by Ethiopian government from domestic competitive pressures in different ways. One form of such protection is that to put the bank to be a sole mobilizer and administrator of almost all low cost public funds. In fact, the bank has been serving as a primary source of funds for almost every mega projects of Ethiopian government, but at the cost of credit misallocation.

2024 glitch incident

Main article: 2024 Commercial Bank of Ethiopia glitch incident

On 15 March 2024, reports were circulated on social media that the bank was compromised for night between 12 a.m. and 3 a.m. Users can transfer large amount of money that their account don't have and access ATM machines without actual deposit. Elias Meseret, an AP journalist stated on social media that he got witnesses who knew the crime. CBE also stated that it affected the branch level as well as the mobile banking system, particularly the CBE online service. The bank also dismissed the social media claims that ATM system was restored to provide "digital banking".

See also

References

  1. ^ "News: CBE stands tall with its deposit surpassing the one trillion birr mark". addisstandard.com. Addis Standard. Retrieved 17 August 2023.
  2. "Commercial Bank of Ethiopia Profile 2014/15". Archived from the original on 31 December 2014. Retrieved 8 October 2016.
  3. Electronic-Banking in Ethiopia- Practices, Opportunities and Challenges
  4. Mauri, Arnaldo (September 2009). "The re-establishment of the national monetary and banking system in Ethiopia 1941–1963". South African Journal of Economic History. 24 (2): 82–130. doi:10.1080/10113430909511220. ISSN 1011-3436. S2CID 154009798.
  5. ^ Mauri, Arnaldo (16 May 2008). "The Re-Establishment of the Ethiopia's Monetary and Banking Systems" (PDF). Departmental Working Papers. n. 2008–11. Archived from the original (PDF) on 5 March 2022. Retrieved 28 March 2017.
  6. ^ Shinn, David H.; Ofcansky, Thomas P. (1 April 2013). Historical Dictionary of Ethiopia. Scarecrow Press. pp. 67–69. ISBN 9780810874572.
  7. ^ Addis Fortune,",[http://addisfortune.net/articles/commercial-bank-targets-diaspora-with-foreign-market-expansion/ – accessed 27 March 2015.
  8. BRIMMER, Andrew F. (1960). "Banking and Finance in the Sudan". South African Journal of Economics. 28 (28): 23–34. doi:10.1111/j.1813-6982.1960.tb01848.x.
  9. ALEMU, HILINA (18 January 2009). "Ethiopia: CBE Poised for Venture into South Sudan". allAfrica.com. Retrieved 21 January 2013.
  10. "PM Abiy Inaugurates East Africa's Tallest CBE Headquarters Building". ENA English. Retrieved 17 March 2024.
  11. "Commercial Bank of Ethiopia". Commercial Bank of Ethiopia. Archived from the original on 22 August 2018. Retrieved 22 August 2018.
  12. Getinet Chane, B.; Yohannes Dalalo, D.; Dereja Gebremichael, B. (2024). "Technical and allocative efficiency of commercial banks in Ethiopia". Cogent Economics & Finance. 12 (1). 2319173. doi:10.1080/23322039.2024.2319173.
  13. Account (17 March 2024). "Ethiopia's state bank system compromised for hours ; loss undisclosed". Borkena Ethiopian News. Retrieved 17 March 2024.

External links

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