Commercial Bank of Ethiopia Revised Loan Rates

As Ethiopia’s banking industry undergoes a thorough transformation under a pair of new proclamations and a slew of directives, commercial banks have begun to respond to the winds of change. While the National Bank of Ethiopia has maintained its policy rate of 15%, several commercial banks have already perked up their lending interest rates. The state-owned Commercial Bank of Ethiopia (CBE) announced adjustments to interest rates the past week for several loan types. CBE, which accounts for nearly half of the banking sector’s assets, is currently undergoing a massive restructuring to realign years of questionable lending practices to other state-owned enterprises. According to the Bank, the revision of the lending rate aims to align lending practices with market conditions and ensure the long-term sustainability of the Bank.