Banking Sector Continues to Grow Despite Various Challenges: Governor - ENA English
Banking Sector Continues to Grow Despite Various Challenges: Governor
Addis Ababa August 8/2022/ENA/ The banking sector continued to register growth despite various challenges such as COVID-19, conflict, and the Ukraine-Russia crisis, Governor of the National Bank of Ethiopia (NBE), Yinager Desie said.
NBE Governor Yinager Desie told the media today that the banking sector registered remarkable growth in terms of deposit, credit and other essential finance requirements.
Digital payment is growing in very short time, Yinager stated, and emphasized that banks should give due attention to digitization and reaching the underserved section of the society.
Over the last four years, the number of banks has increased from18 to 30 and the number of branches has increased from 5,564 to 8,944, it was learned.
The total capital of banks over the past four years has boosted from 98.9 billion in 2019 to 199.1 billion birr in 2022 registering 27 percent average yearly growth and number of deposit accounts has increased from 40.04 billion birr to 83.3 billion birr.
Moreover, total asset of banks has soared from 1.3 trillion birr to 2.4 trillion Birr registering 92 percent growth while total deposit increased from 899,811 billion Birr to 1.7 trillion Birr registering 93 percent growth.
Net income of banks has increased from 22.4 billion birr in 2019 to 49.9 billion birr in 2022 registering 122 percent growth, it was indicated.
According to NBE, bank's Capital Adequacy Ratio (CAR), Non-Performing Loan (NPL), and Liquidity Ratio stands at 16.04 percent, 3.87 percent, and 27.05 percent against minimum of 8 percent, maximum of 5 percent and minimum of 5 percent respectively.
Thus, by and large banks have continued to operate in a safe and sound manner, the Governor stated.
The need for strengthening advanced preparation for opening banking sector to foreign investors was emphasized.