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· Commercial Bank of Ethiopia (CBE) has raised loan service charge rates to 9.8 percent, from the previous 8.63 percent
· The Commercial Bank of Ethiopia has an average borrowing interest rate of 14.5 percent which is lower than what is prevalent in the market
· The bank charged higher services charges from merchandise goods (maximum 16.5 percent), microfinance (maximum 12.5 percent), condominium housing (12 percent), public enterprises (maximum 12.5 percent), corporate bonds (9 percent), coupon bond (10.5 percent), and merchandise goods that earn forex (9.5 percent
Commercial Bank of Ethiopia (CBE) has raised loan service charge rates to 9.8 percent, from the previous 8.63 percent. CBE is Ethiopia’s largest bank and the largest in East Africa. The hike in interest rates is aimed at balancing the income and expense of the bank. The bank’s income has increased only at a yearly average of 26 percent. As against this, the expenses grew at 39 percent during the past five years. The CBE has posted a profit of 7.4 billion birr (US$184.45 million) during the past six months. Its total assets now are valued at 903.6 billion birr (over US$22.52 billion).
The Commercial Bank of Ethiopia has an average borrowing interest rate of 14.5 percent which is lower than what is prevalent in the market. The increase in service charge averaged 9.8 percent from the previous 8.63 percent. The bank charged higher services charges from merchandise goods (maximum 16.5 percent), microfinance (maximum 12.5 percent), condominium housing (12 percent), public enterprises (maximum 12.5 percent), corporate bonds (9 percent), coupon bond (10.5 percent), and merchandise goods that earn forex (9.5 percent).
The bank has introduced several systems to enhance its operational efficiency that would enable the bank to enhance its reputation by providing more effective services to its customers. The latest core banking solutions added to its bouquet of services empower the bank to deliver a complete suite of banking business solutions, enabling CBE to quickly put in use the features needed within minimal time, risk, effort and cost.
