Central bank is evaluating its readiness
One of the new entrants to the banking industry, Amhara Bank, filed a request at the central bank to secure a license to begin operations.
It is the last requirement needed by a financial institution to secure a license to officially launch its operations. The move comes after the bank hired enough human resources to start operation.
Joining the banking industry with a staggering six billion birr in paid-up capital, Amhara Bank was among dozens of establishments that were under formation since last year.
Only seven of them secured a license, while over 20 banks that were under formation failed to meet the half a billion birr requirement set by the NBE, before the deadline in September 2022. The central bank has later increased the requirement to five billion birr.
With 185,000 shareholders, Amhara Bank has already picked a founding president, Henok Kebede, who was the vice president of Dashen Bank, before assuming his current post. Henok said the bank has fulfilled all the criteria required to launch service.
“We are now waiting a green light from the central bank. Service will be launched once we secure the operational license,” said Henok, refuting claims that the financial institution has opened a branch on social media last week.
Though she refrained from stating the exact place, Mesenbet Shenkutie, one of the founding members of Amhara Bank, disclosed the Bank has already identified locations to open branches and fulfilled IT requirements needed to begin operations.
“Complete manpower, convenient location for staff, location and use of IT will require a permit from the National Bank,” said Mesenbet.
The central bank has started to review the request of the bank.
“We are evaluating whether the bank is ready for operation or not,” said Frezer Ayalew, director of bank supervision at the regulatory body.
While the evaluation is expected to take two or three weeks, Frezer assured the Bank will get a permit before the end of this month, if it fulfills the requirements.