Professional Documents
Culture Documents
NEJAT BANKING ASSIGNMENT
NEJAT BANKING ASSIGNMENT
The banking industry in Ethiopia has a rich historical background that dates back several
decades. Here is an overview of the key milestones and developments in the Ethiopian banking
sector:
Early Banking Institutions: Modern banking in Ethiopia can be traced back to the early 20th
century. The first bank in the country, Bank of Abyssinia, was established in 1905 during the
reign of Emperor Menelik II. It primarily catered to the financial needs of the ruling class and
foreign businesses operating in Ethiopia.
Nationalization and State Control: In 1974, the Ethiopian government underwent a revolution
that resulted in the overthrow of Emperor Haile Selassie and the establishment of a socialist
regime. As part of the government's policy of nationalization and state control of key sectors,
including banking, all private banks were nationalized, and the state-owned Commercial Bank of
Ethiopia (CBE) became the sole banking institution in the country.
Liberalization and Market Reforms: In the 1990s, the Ethiopian government initiated a series of
economic reforms and liberalization measures aimed at revitalizing the economy. As part of
these reforms, the banking sector was opened up to private participation. In 1994, the
government introduced the Banking and Monetary Proclamation, which paved the way for the
establishment of private banks in Ethiopia.
Emergence of Private Banks: Following the liberalization measures, a wave of private banks
entered the Ethiopian banking industry. The first private bank, Awash Bank, was established in
1994. Subsequently, several other private banks were established, including Nib International
Bank, Dashen Bank, Abay Bank, Addis International Bank, Bank of Abyssinia, Berhan
International Bank, Bunna International Bank, Commercial Bank of Ethiopia (State Bank),
Cooperative Bank of Oromia, Debub Global Bank, Enat Bank, Lion International Bank, Hibret
Bank, Wegagen Bank, Zemen Bank, ZamZam Bank, Hijra Bank, Siinqee Bank, Shabelle Bank,
Amhara Bank, Ahadu Bank, Goh Betoch Bank SC, Tsedey Bank, Tsehay Bank, Gadaa Bank SC
and United Bank. These private banks played a crucial role in expanding access to financial
services and promoting competition in the sector.
Regulatory Framework and Supervision: The National Bank of Ethiopia (NBE) is the central
bank and regulatory authority for the banking sector in Ethiopia. It is responsible for formulating
and implementing monetary policy, issuing banking licenses, and supervising the operations of
banks in the country. The NBE plays a pivotal role in maintaining stability and ensuring the
soundness of the banking industry.
Recent Developments: In recent years, the Ethiopian banking sector has experienced significant
growth and modernization. The introduction of new technologies, such as mobile banking and
agent banking, has expanded financial inclusion and improved access to banking services,
particularly in rural areas. Efforts have also been made to enhance financial sector governance
and strengthen risk management practices.
The Bank has obtained its license from the National Bank of Ethiopia (NBE) on June 25, 2009,
in accordance with Licensing & Supervision of Banking Business Proclamation No. 592/2008
and the 1960’s Commercial Code of Ethiopia with more than 451 Bunna Bank Brunches.
The Bank officially commenced its operation on October 10, 2009 with subscribed & paid-up
capital of Birr 308 million and Birr 156 million, respectively. However, the paid-up capital has
increased to over Birr 2.1 Billion, and the number of shareholders has increased to over 13,024,
which makes it one of the strongest and public based private Banks in Ethiopia.
Saving Account
Current Account
Fixed time Account
International Banking
Export Transaction
Import Transaction
Foreign Banking Guarantee
Foreign Exchange Service
Foreign Currency Account
Correspondent Banking Network
Forex Services
It has joined the international business connectivity using SWIFT, Western Union, MoneyGram,
Xpress Money, Flocash, Juba, Dahabshiil, Trans-Fast, Kaah, Exchange4free, Remitix, Ria, Al
Ansari, and other fund transfer technology networks.
Unique Services
These services enable customers to overtime meet future plans and for contingency. This account
is designed for the business community, salaried individuals, NGOs and etc
2. Bunna Star
3. Bunna Investment
It is recurring deposits account with a cumulative term deposit feature.
Buildings
Motor Viechles
Machinery and equipment
Trade receivable
Share Certificates
Other Services
Buna International Bank Share Company (BIB) runs its operations with modern information
technologies for its value-adding customer services. Furthermore, BIB is running different ICT
projects to create more convenience for the customers to reach them anytime, anywhere, any
device. BIB is also working to enhance the infrastructure for organizational, national, and
international business connectivity.
Electronic Banking
Internet Banking
Bunna Bank has a fast internet banking system called Bunna Net. With Bunna Net, a customer
can access the following services: View, download, or print account statements, Start, stop, or
amend standing orders in real-time, Transfer cash to another Bunna account in real-time, Pay
utility bills, Make bulk payments, for example, salaries, dividends, loan disbursements, bonuses
and supplier payments, Order cheque books and stop cheques.
Mobile Banking
Bunna Bank has a friendly mobile banking service called MBunna Cash. To get the services
simply register at any of this Bank’s branch and after registering simply dial on Bunna Bank
mobile banking code/number at *820# to get the service.
ATM Banking
At Bunna Bank ATM machines which are located in multiple places a customer can get these
services, Cash Withdrawals, Account Balance Enquiries, Mini-Statements, Card PIN Change