Ethiopia's Banking Sector welcomes new bank
A new bank under establishment called Dalol Bank SC is subscribing shares by public offering to become the newest entrant to Ethiopia’s banking industry, reports Ethiopian English weekly newspaper Addis Fortune. The company has issued shares with 1,000 par value with the minimum number of shares an individual can buy being 25.
When the bank joins the market, dominated by the state owned Commercial Bank of Ethiopia, it will become the 17th private bank and the 19 bank in the entire country.
According to the National Bank of Ethiopia’s directives the minimum capital requirement for banks is 500 Million Birr. Furthermore, the country’s investment laws require the shareholders to be only Ethiopians and none other.
Up until the last quarter of the current fiscal year, the privately owned 16 banks have a capital tally of 28 billion Birr. They have also disbursed around 135 billion Birr loan and their deposit sheet shows 200 billion Birr.