Borkena
Toronto – The National Bank of Ethiopia (NBE) released its financial stability report on Saturday, focusing on the performance of banks and other financial sectors.
The report covers the period from July 2023 to September 2024, aiming to evaluate the impact of recent macroeconomic reforms. These reforms include the liberalization of the banking sector and the adoption of a market-based foreign exchange regime.
According to the report, the banking sector continues to dominate Ethiopia’s financial landscape, with banks accounting for 96.1% of the total assets in the financial sector. While this is expected given the short timeframe of the reforms, the report does not indicate whether the NBE anticipated a different outcome.
The NBE offered a largely positive assessment of the banking sector’s performance during the period, stating:
“During the reporting period, Ethiopia’s banking sector remained stable and resilient.”
However, the report also warns of increasing risks to the financial sector due to “external and domestic developments.” The specific factors contributing to these risks are detailed in the full report linked by the NBE.
Credit and Liquidity Risks
The report noted favorable findings regarding credit risks. Stress tests suggest that credit risks are manageable, even under severe shocks:
“Credit risk is lower than high credit concentration suggests, because loans to the private sector are relatively diversified. In addition, the credit risk stress test shows that even a severe shock would not pose systemic threats.”
Similarly, the report highlights “low liquidity risk” in the banking industry and its resilience to “short-term liquidity shocks.”
Operational Risks Pose Major Challenges
A significant concern identified in the report is operational risks, which the NBE expects to rise in the short to medium term. Key risk factors include fraud, “social engineering,” insider threats, and vulnerabilities posed by third-party systems.
A major incident in the banking sector earlier this year seems to underscore the magnitude of the risk. In March, the Commercial Bank of Ethiopia (CBE) experienced a digital banking system failure that allowed clients to withdraw funds exceeding their account balances. While the CBE reported losses of around 800 million Ethiopian birr, other sources suggested the losses could be as high as 5 billion birr. The incident, attributed to a system glitch during an online system update, prompted an investigation by government authorities, the result of which was rather blurry.
Mitigation Measures
The NBE has issued directives to banks to “reduce observed risks” and strengthen operational safeguards.
A detailed version of the financial stability report is available here.
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‘Another Bank Outage Has Just Left Millions Of Americans Without Money”
Link = youtube.com/watch?v=EeJAk9SZjZU
The Banking system in the West has been showing great uncertainty since 2020 ‘Covid-19″-lockdown and Free-money was issued particularly in the US… As a result of inflation created by the free-money handout the US FED started hiking interest rate and banks that bought US treasury Bonds while interest rate was low were bleeding money (getting pied 1% & 2% and paying out 4%-5%) carrying huge debt for the low paying Bond as well as the huge Empty ‘Commercial-real state’ portfolio they all hold that is increasingly underwater , some Banks were forced to close their doors, others went to huge consolidation route to buy some time, regardless many more are underwater as we speak.
While this is happening, Abiy govt declared ‘Banking sector liberalization’, creating an ‘escape-valve’ for indebted-foreign Banks to come in & gobble-up ‘real assets’ in Ethiopia using stronger USD $$$ to maximize profit on the Abiy devalued Eth birr ( 0.57 to 0.127).
IMF and World Bank engineered this schemes & forced the condition clearing the way for the big ‘auction’ of Ethiopian Public Assets to be transferred to the Western-fraudsters ( Western predators).
Were were they when Ethiopia needed help to build GERD?
Now GERD is finished and IMF, WB, & ECB come in, as Abiy put it, ” to give us free money” and thanked Christy laggard and company for it… ( how gullible…)
Cats don’t kill a mouse captured right away, but plays with it for a while… knowing full well it is under total-control.
These IMF and WB trained International-Bankers-wannabes occupying key positions in NBE and subsidiaries who are building their future IMF & WB carriers, have taken Abiy to the ‘primrose path’, where nothing but the worst case scenarios ( as they have described in this report) are awaiting the Ethiopian people.
They knew what they were doing, the Western Banking Data was out there from 2020 for everyone to see, but they went ahead and pulled the trigger, with this ‘liberalization’ ( aka ‘wealth transfer ‘) scheme.
Do not say you weren’t warned following the rumors that these schemes were about to be employed at NBE…
There has to be some kind of accountability put in place, to keep these people’s feet to the fire.
Hope the BRICS alliance will help guide this lost-ship that is blindly headed to the ‘Bermuda Triangle’ of the Banking-cartel-zone (pest infested ‘shallow’ water) where IMF, WB, and ECB are headquartered in.
Be well
China just put “a spoke in the wheel” in the US use of the USD ($) as its ‘sanction’ tool ( financial war) by issuing a USD denominated Bond in Saudi Arabia, in the process making the US treasury Dept, just ‘another shop’ for USD Bond buyers…
In other words, US dollar dominance used by the US has be come the thing of the past with this simple move…
Link = youtube.com/watch?v=YnflbhwEjVQ
Trump’s sanction treat on BRICS…
=========================
In regards to the US president-elect Trumps warning of the BRICS states ( trump’s sanction treat on BRICS ) was given qualified response by none other than President Putin of Russia. By simply saying, innovation cannot be stopped.
Link = youtube.com/watch?v=pbIvbg39SuI
Be well.
When I heard that the NBE has a well qualified countryman as its governor by Obbo Mamo Mihretu and the ministry of financed is headed by another overqualified finance wiz Obbo Ahmed Shide, it gave me confidence that the old country is in good and very capable hands. Looters will not have an easy time.
Let’s just hope that is the case…
The infiltration is not limited to the economic-space, like an octopus it has tentacles in every aspect using ‘benevolent’-by name agencies such as NED, USAID, WEF (and many branches of these 3 ) nations are infiltrated to make locals to work on behalf of the West against their own ( mostly unknowingly), as described in detail by those who know the inner workings of these agencies…
The events unfolding in the Middle East is one such example of ‘the end game’… which applies globally in their effort ‘global supremacy’… the naked contradiction easy to see in GAZA and in support of NAZI-movement in Ukraine… It has always been like this covered-up by MSM for centuries, only the presence of the Internet and cellphone innovation put everyone to take the front-seat bypassing the captured-MSM.
‘Syria: A Battle Lost Amid a Wider War’,
The New Atlas
Link = youtube.com/watch?v=mcN2aZgr8Yg
Be well.
‘How Blackrock Became Overpowered’
(BlackRock’s Aladdin (AI))
Link = youtube.com/watch?v=2sTjYSZPNvo
Blackrock future plan to: “Tokenization of all assets on the planet…”
That is why keeping the 1975/6 “Land Act” as is, is crucial…,
Ethiopian Land MUST remain (public) in the people of Ethiopia hands, no one else.
Be safe & be well.
US Banking crisis catching momentum & is can go warp speed at any moment, as the FED did a 180 & drops ‘interstate’ despite ‘inflation’ (that triggered rate increase in the first place) still remains an issue…
1) “Fed’s Hawkish Moves Trigger Economic Alarm”
Link = youtube.com/watch?v=0rhQt81JTd0
2) “Is Fed in Complete Denial of Data Revisions? What Latest Confusion & Dissent Mean for 2025 – Booth”
Link = youtube.com/watch?v=xNo0_e_MALU
3) “Go To Your Local Bank And Stock Up On Cash While You Can Because Widespread Outages Are Coming”
Link = youtube.com/watch?v=OD7DUkX7iP4
Be prepared !!!
Be well.