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· In Ethiopia, public financial enterprises have been overtaken by private banks in terms of fresh loan disbursements\
· The National Bank of Ethiopia (NBE) in the second quarter review has registered a growth of 130 percent in the loan disbursement to the construction and housing sector
· Ordinarily, the bank disburses only 10% of its total loan allocation to the construction and housing sector
In Ethiopia, public financial enterprises have been overtaken by private banks in terms of fresh loan disbursements. The National Bank of Ethiopia (NBE) in the second quarter review has registered a growth of 130 percent in the loan disbursement to the construction and housing sector. Ordinarily, the bank disburses only 10% of its total loan allocation to the construction and housing sector. The giant public financial firms leave their dominance in terms of the supply of fresh loan supply and capital in the banking system. In the first quarter of 2020-21, the public financial firms, which are two number, put their capital at the top by over half of the total amount. In the second quarter of the current financial year the state banks capital share has dropped from half of the total capital in the banking industry. However, 17 private banks together accounted for the lion’s share for the first time in the history of the financial industry.
According to the NBE quarterly report that covers October, November and December 2020, the total capital of the banking system amounted to 120.8 billion birr. Of that, state owned banks accounted for 48.1 percent and private banks 51.9 percent. The capital share of public financial enterprises in the first quarter of the same fiscal year was 50.9 percent and 52.9 percent in the second quarter of last financial year.
