Commercial Bank of Ethiopia (CBE) Review

Apply for a loan here

Banks Ethiopia gives you the access and information you need to get car loan and house loan services in Ethiopia from the bank of your choice. If you are a non resident and/or a foreigner with origin of Ethiopia looking for these loan services, make sure to visit our diaspora mortgage loan and diaspora vehicle loan pages to acquire a more detailed information.

Commercial Bank of Ethiopia Exchange Rate Today

The exchange rate for Commercial bank of Ethiopia can also be found at our exchange rates page, along with all other banks’ exchange rates in Ethiopia today.

About Commercial Bank of Ethiopia

One of the predominant banks operating in Ethiopia is the Commercial Bank of Ethiopia, Background of commercial bank of Ethiopia begun Way before its establishment, the bank was under the State Bank of Ethiopia, which was founded in 1942. That led the way for CBE to be founded separately in 1963, before its unification with the, back then, Addis Ababa Bank in 1974.

The Commercial Bank of Ethiopia has more than 22 million account holders who can be entertained by a number of services. With money digitization in mind, the bank has now more than two and a half million cbe mobile and internet banking users as of last year.

Ethiopian’s First Bank

 Commercial Bank of Ethiopia (CBE) is the first bank to introduce modern banking to Ethiopia. It was once the leading African banks with assets of 485.7 billion Birr as of June 30th, 2017. It now has over 1500 branches across the country and plays a significant role in the economic progress and development of the country.

CBE is also the first bank to introduce Western Union Money Transfer Services in the country and currently working with more than twenty money transfer agents like Atlantic International, Xpress Money, and Money Gram. CBE has reliable and enduring relationships with internationally recognized banks across the world.

The Commercial Bank of Ethiopia has a well-built correspondent relationship with renowned foreign banks like Commerce Bank A.G., Royal Bank of Canada, City Bank, HSBC Bank, it also has a SWIFT bilateral arrangement with more than 700 others banks throughout the world.

The commercial bank role in Ethiopia is to act as a government representative bank directed to the larger company working with import, and export businesses.

Services Provided by the Commercial Bank of Ethiopia

Commercial Bank of Ethiopia has a range of options. You can go with Ordinary saving, Youth, Teen, Education saving account, and a specific saving account for Women. Choose the type of account that suits you the best.

Saving Account Commercial Bank of Ethiopia

Personal Account

Definition: With a minimum of %7, you can open an interest-bearing account as long as you are satisfying certain legalities and requirements by the bank, either as an individual, association, organization, or company.

Required Document

• If you are an individual, you must bring any credentials that verify you, like passport, ID, school ID, etc.
• If you are a Private Limited Company, you must possess any documents that ensure that you are a PLC, like a work permit paper, legal business opening file, etc

Demand Account

Definition: This is a non-interest-bearing account and only literate customers can open such an account. The demand account can be either a checking or current account. In addition to literate customers, legal agents named by the principal can also open and/or operate demand accounts. The process to verify such a legal agent has to go through the bank’s legal department, area offices, or branch managers. Situations determine who verifies that. If all the legal documents are successfully processed, a minimum of 500 birr for a current account, and 1000 birr for others.

Demand Account Types provided by the Commercial Bank of Ethiopia

Some terminologies might be difficult to understand. However, it can be easily understandable depending on your need. You can have an ordinary demand deposit, special-demand deposit, or ECX related accounts. These are the three types of demand accounts provided by the Commercial Bank of Ethiopia.

Required Documents

• Same as the personal account, if you are an individual, you must bring any credentials that verify you, like passport, ID, school ID, etc.
• Additionally, if you are a Private Limited Company, you must possess any documents that ensure that you are a PLC, like a work permit paper, legal business opening file, etc.

Commercial Bank of Ethiopia Diaspora Account

Definition: Individuals, companies, and residing foreign citizens as well as Ethiopians who have lived more than a year abroad and Ethiopians by origin but have different nationalities, are eligible to have a non-resident account, known as a Diaspora account. Such an account is a non-interest bearing account and can be used for payments within Ethiopia (local payments) as two types have an interest, namely Fixed Time Deposit and Non-Repatriable Diaspora account. The source of the deposits is in foreign currencies, which the bank will use the current date for the exchange price. For more on diaspora account in Ethiopia, visit this page.

Non-Resident Account Types provided by the Commercial Bank of Ethiopia

There are 5 types of Diaspora account that the Commercial Bank of Ethiopia provides for its customers:

• Diaspora accounts
• Non-Resident Transferable for Birr Account, AKA (NR-T Birr)
• Non-Resident Non-Transferable for Birr Account, AKA (NR-NT Birr)
• Non-Resident Transferable foreign currency, AKA (NR-T)
• Foreign Exchange Retention accounts

Required Documents

• The following must verify their ownership to legally have a Diaspora account in Ethiopia:
• Foreign Nationals of Ethiopian Origin
• Exporters
• Diplomats
• Non-Resident Ethiopians
• Embassies
• International Organizations
• Foreign Investors
• International Charities
• Emigrant(refugee) Employees of International Organizations

Investment Loan

For investment loan, Commercial Bank of Ethiopia offers a wide range of options:

• Motor Vehicle, Construction Machinery, Agricultural Term, Partial Financing, Syndicate, Term, and Idea Financing loans.
• Any group or individual who has/have a recognized, scientific invention/study by the government of Ethiopia that deals with seeding innovative ideas, (namely MINT).
• Once Intellectual Property Right Protection is obtained from the designated office, the loan is then granted for those innovators to mass-produce their ideas

The Commercial Bank of Ethiopia might extend the loan to Idea Financing loans to up to a maximum period of 10 years, with a one year grace period Continuing with the options that CBE offers as loan investment, which includes:

• Loan against Corporate Bond
• Housing Development Loan
• Equipment and/or Machinery Leasing Financing

Micro Finance Loan

Definition: Basically, they are organizations that have some sort of engagement in supplying financial services such as savings and credit to the low-income (poor) division of the community.

• CBE does loans to micro-finance institutions in only term loans that are subjected to repayment from within a short to medium term.
• CBE will extend credit ability to such institutions when they raise their financial limitations for giving credit to other micro-entrepreneurs.
• The Bank may negotiate on the interest rate on credit to the Micro Finance Institutions.
• Discussions can happen on the interest rate for the credit given to micro-finance institutions.

Eligibility

• To be eligible for micro-finance loans by CBE, an institution should have an excellent loan portfolio in terms of savings, loan approvals, best recovery practices, and similar measures and indices.
• Micro-Finance Institutions should also ascertain that they are legally registered with the National Bank of Ethiopia and abide by and meet all relevant policies and directives of the National Bank of Ethiopia regarding:
• As a notice, such institutions must know that they are legally registered with the NBE (AKA: National Bank of Ethiopia) and that they are following the policies and commands of the NBE for: Reserve, Liquidity, Capital adequacy, and Minimum paid-up capital requirements, and any other requirements set by the National Bank of Ethiopia.

As a security measure, micro-finance institutions shall propose a minimum of %75 of the principal loan,  if they are able to obtain a credit-guarantee plan from the designated part.

Working Capital Loan

Definition: is a loan that is taken to finance a company’s everyday operations. These loans are not used to buy long-term assets or investments and are, instead, used to provide the working capital that covers a company’s short-term operational needs. Working Capital loan within the Commercial Bank of Ethiopia policies includes:

• Import Letter of Credit Facility
• Pre-Shipment Export Credit Facility
• Advance on Export Bills Facility
• Overdraft and overdraw Facility
• Merchandise Loan Facility
• Overdraw
• Import Letter of Credit Settlement Loan
• Revolving Export Credit Facility
• Letter of Guarantee Facility

Trade Service

Definition: One of the fundamental services of CBE is trade services, as the bank has connections with mostly all international banking services. Trade services can now be found on all the branches of CBE with hired customer service officers.

Services: CBE offers trade services in the form of:

Documentary Credit (L/C)

This is a written letter vow by CBE that is given to the seller if the buyer asked for a payment to be made, or receive and pay bills as an exchange (AKA draft). The seller draws the number up to a declared sum of money within an expressed time duration and against specific documents. It includes:

• Import:- it is available by observation of payment/negotiation, payment/deferred payment*/acceptance payment*. There are forms to be filled, namely LS Application or LS Amendment.
• Export:- payment available by observation of negotiation/acceptance of bills. *If approved by the National Bank of Ethiopia

Documentary Collection:

This is a way that CBE handles a seller’s commercial documents, either in the presence of financial documents or not. This procedure must go in alignment with instructions given by the seller, so the documents can be delivered to the buyer (namely as the Importer). This also has to go head to head with payments and/or acceptance or other term and condition sets, which has:

• Import:– this is available by sight payment. There are two types of forms: – Documentary Credit Application and  – Documentary Credit Amendment forms
• Export:- this is also available by sight payment/acceptance payment

Advance Payment:

This is a way in which a seller gets payment from a buyer before shipment of the agreed on goods, or rendering service takes place. The advance payment contains:

• Import- Payment through bank transfers
• Export- Payment through bank transfers, traveler cheques, cash (as long as it is declared).

Consignment Basis Payment:

This is a way of payment that the title of the goods remains with the seller until a distributor in a foreign country sells them. The payment is afterward made when the agent sells the goods.

• Export- it is applicable to the likely to decay items, for example, fruits, flowers, meat, syrup, etc as approved by the National Bank of Ethiopia

Commercial Bank of Ethiopia Credit Scores, Worthiness, and Credit History

we provide you with the latest information on CBE’s credit scores, worthiness, and credit history. According to the National Bank of Ethiopia’s Financial Stability Report 2024, here are the key findings:

Credit Score

• As of 2022, CBE’s credit score is rated as “AA-” by the Ethiopian Credit Information Center (ECIC), indicating a high level of creditworthiness.

Credit Worthiness

• The NBE’s Financial Stability Report 2024 rates CBE’s credit worthiness as “very strong” with a rating of “4.5”, indicating an extremely high level of creditworthiness and reliability.

Credit History

• With a history dating back to 1942, CBE has a long track record of stability and reliability. The bank has consistently demonstrated its ability to repay loans and has not experienced any significant defaults or arrears.

Banking Fees

• Account Opening Fee: Birr 50-100 (USD 1.50-3) for Personal Accounts , Birr 20-50 (USD 0.60-1.50) for Savings Accounts
• ATM Withdrawal Fee:
  • Within Ethiopia: Free
  • Outside Ethiopia: 2% of withdrawn amount, minimum Birr 20 (USD 0.60), maximum Birr 500 (USD 15)
• International Money Transfer Fee:
  • Outward Remittance: 0.5% of transferred amount, minimum Birr 50 (USD 1.50), maximum Birr 500 (USD 15)
  • Inward Remittance: 0.2% of received amount, minimum Birr 20 (USD 0.60), maximum Birr 200 (USD 6)
• Credit Card Annual Fee:
  • Classic Card: Birr 500-1,000 (USD 15-30) per year
  • Gold Card: Birr 1,500-3,000 (USD 45-90) per year
  • Platinum Card: Birr 3,000-5,000 (USD 90-150) per year
• Cheque Clearance Fee
  • Cheque deposit: Birr 20
  • Cheque issuance: Birr 50
  • Cheque return: Birr 100

    Other Fees

  • Stop Payment Fee: Birr 100
  • Duplicate Statement Fee: Birr 50
  • SMS Alert Service Fee: Birr 20 per month

Important Note The offers and terms listed above are subject to change without notice and may vary depending on your specific account type, account status, and other factors.

Financial Reports Of CBE

The latest information on the financial performance of the Commercial Bank of Ethiopia (CBE). In this article, we will be sharing the key highlights from CBE’s latest financial report, as published by the National Bank of Ethiopia (NBE) in April 2024.

Strong Financial Performance

CBE’s total assets increased by 24.5% to Birr 544.6 billion in 2023/2024, driven by a growth in deposits and loans. The bank’s deposits grew by 25.1% to Birr 443.1 billion, accounting for 81.3% of the total deposits in the banking sector.

Capital Adequacy Ratio

CBE’s capital adequacy ratio (CAR) stood at 14.5% as of March 31, 2024, exceeding the minimum required ratio of 10%. The common equity tier 1 (CET1) ratio was also above the minimum required ratio at 12.3%.

Risk Management

CBE’s credit risk profile remains manageable, with a non-performing loan (NPL) ratio of 4.5% as of March 31, 2024. The bank’s liquidity position is also strong, with a liquidity ratio of 38.5% as of March 31, 2024.

Digital Banking and Branch Network

CBE has continued to invest in digital banking platforms, including internet and mobile banking services. The bank operates a large branch network with over 1,200 branches across the country.

Contact Information

Toll-free Number: 951

CBE phone number: +251-551-50-04

CBE Email Address: [email protected]

SWIFT: CBETETAA

CBE Head Office: Legehar, Addis Ababa, Ethiopia