Nib Bank Review

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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.

Nib Bank Exchange Rate

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

About Nib Bank

Among the banks in Ethiopia, NIB Bank emerges to be a competitive one. Established in May 1999, NIB Bank was the 6th private bank in Ethiopia. More than 700 shareholders jointly contributed 150 Million Birr as a paid-up capital.

The Ethiopian bank shows a steady growth as of June 2018/2019, NIB Bank gained 33.7 Billion Birr and the shareholders reached more than 4,560. Serving more than 800,000 customers, NIB Bank promises to introduce new products, services, and experiences for its customers. Currently, Billion Birr was invested in building state of the art new NIB Bank head offices.

Services Provided by Nib Bank

Domestic Banking

Deposit: NIB Bank prides itself on bringing several deposit account types for the customer to choose from, which include:

Time Deposit:

Deposits stay in this account for a certain amount of time because it has a higher interest rate than any other account type. The higher the money deposited, the higher the interest rate is, and the longer the maturity is; such factors play a role when applying the interest rate. Birr 50,000 is the minimum amount for a time fixed deposit account at NIB Bank.

Current Account:

This is a non-interest-bearing deposit account that is operated via cheque and can also be operated/opened by a legal agent named by the account holder. The minimum amount required to open a current account is Birr 1000 for companies, associations, and enterprises, and Birr 500 for individuals.

Saving Account

This is an interest-bearing deposit account that the bank pays monthly interest on the minimum balance of the account holder. It can be operated with or without a passbook. The minimum amount to open a savings account is Birr 10, while any deposit and withdrawal must be done via showing the passbook.

Lucy Saving

This is specifically tailored for women to encourage them to save and earn a higher and better interest rate than any other account type. Keep in mind that the minimum amount to open a savings account is Birr 10.

Special Demand Deposit

NIB Bank offers an account which is of a non-interest bearing type. Its purpose is to satisfy the requests of the bank’s customers who do not want interest in deposits.

Special Saving Account

Those who are interested to get interests and effect payments through cheque. For Special Savings, Awash Bank doesn’t require a passbook. This type of account is allowed 3 withdrawals a month. Otherwise, depositors will forfeit interest for that particular month.

Children

Anyone who is underaged (under 18) can have this account opened. However, it is to be controlled by their parents/guardians as they are the ones who can open an account on behalf of the children.

Students

Students who are taking their higher education are recommended to have a Student account. With a minimum deposit of Birr 10, students at any college or university can open a student saving account

Nib Kefo Saving

This is a unique type of savings, where you don’t have to come to the bank. NIB Bank is coming to you!

New Born Baby

NIB Bank offers this account for newly born babies, in which their parents can start saving for them.

Prestige Saving Deposit

With an initial deposit of Birr 5,000, organizers of Equb, Idir, religious institutions, and alike can have a Prestige Saving Deposit account.

Gojo/Guzo Saving Account “A”

If you want to buy a vehicle or a house, Gojo/Guzo saving account is the best suited for you. Whether you are an Ethiopian national or non-resident (Diaspora) who receives their money through SWIFT, International Money Transfer Agents, or exchange the hard currency, you can open an account with zero balance!

Gojo/Guzo Saving Account “B”

For those who are looking to get higher interest rates and withdraw cash at any time, Gojo/Guzo Saving Account B is a suitable option for them. It has the same processes of Gojo/Guzo Saving Account ”A”, in which either Ethiopian nationals or Diaspora can have their account opened with zero balance, as they receive their money via IMTA, SWIFT, or hard currency.

Executives Special

Operated by cheque, higher officials,  senior executives, general managers, or administrators of companies, cooperations, private, governmental, or non-governmental can have an executive deposit account opened for an initial deposit of Birr 10,000.

Senior Citizens

Senior citizens are recommended to have a Senior Citizens account. With a minimum of Birr 25,000,  NIB Bank invites senior citizens to save their retirement savings

Holiday, Vacation & Special Purpose Saving Account

With an initial deposit of Birr 10, you can have your holiday, venture, vacation, graduation, marriage, or trip planned and saved for. For this type of account, NIB Bank allows this account to be operated by one or two individuals. Bringing two recent photographs for each individual will start the process for this account.

Loan

NIB Bank offers two types of loans: For the Economic Sector and Credit Products

Economic Sector

Agriculture: Customers of NIB Bank can extend this service to cover the purchase of machines, lands digging and watering, civil works, and implements.

Building & Construction: NIB Bank offers its customers an opportunity to be engaged in construction and its maintenance and renovations. Additionally, customers of NIB Bank can participate in commercial/industrial buildings, dams, roads, and alike.

Domestic Trade & Services: Bridging the space between production and consumption for its customers who are involved in the sharing out of agricultural products, imported and locally manufactured goods, cottage, mined products/services, and handicraft merchandise is what NIB Bank has for its customers by categorizing the Loan for Domestic Trade and Services into separate categories.

Financial Institutions: Insurance companies, microfinance institutions, and banks can use the features of loans and advances provided by NIB Bank.

Hotels & Tourism: This type of facility is given by NIB Bank to encourage hotel and tourism sectors and other related sectors with tourism

Import & Export

Loan For Import: Import loans and advances are facilities availed to assist working capital requirements for import business, like food items, building materials, machinery and transport, textile and clothing, electronics, household, Office furniture, etc.

Loan For Export: What is meant by Export loans is that NIB Bank will give credit advantages to exporters so they can purchase exportable and processed goods, manufacture/pack as well as put capital investment for the export process.

Export loans and advantages can also be given out to those who want to purchase pesticides, fertilizers, and seeds as it is their main business (farm). As it is under the export category, those people can directly export to the outer market via NI Bank.

Industry: Those who are participating in the industry production goods are welcomed to use loans and advances for the Industry sector by NIB Bank. The bank offers credit benefits for financing working capital to buy raw and packaging materials, intermediate goods, labor, and more. NIB Bank also provides loans for the purchase of machinery/equipment, factory houses/warehouses, and its construction.

• Mines Power & Water
• Customers of NIB Bank can utilize the Mines Power and Water loan and advance services for their power generation and water development businesses as well as extraction and exploration of minerals.

Transport: There are many loan and advance services identified for the transport sector, such as :  Public Transport services, Automobiles for Staff and others, Dry and liquid freight cargo, Air Transport such as Cargo and Passenger and Marine Transport.

Credit Products

There are many types of credit products that NIB Bank provides for Ethiopians and non-resident (Diaspora).

Overdrafts: It is a credit advantage given to a customer for the short-term. A customer is allowed to draw beyond his/her/its current account up to a limited amount. The advantage given is usually used to bond working capital limits that would come up in a business between receipt of funds and its spending.

Temporary Overdraft: NIB Bank offers a facility similar to Overdrafts. However, here a customer can draw a limited amount of funds that have been set as a limit. So as to satisfy unplanned cash shortages that happen throughout the year, the amount limited to be withdrawn is to be set.

Overdraw: An overdraw is a  temporary credit product that permits a customer of NIB Bank to draw a number of funds that is limited, which is over and above the overdraft limit So as to satisfy unplanned cash shortages that happen throughout the year.

Term Loans: Term loans are credit facilities with structured repayment to be effected within a certain period of time. Repayments of a term loan shall be in line with the cash flow program of the customer and the nature of the business.  A term loan’s repayment can according is monthly, quarterly, semi-annually, annually, or at lump sum payment.

This type of credit product is designed to perform as structured repayment. The repayment process must be aligned with the cash flow program of the business and the customer too. The repayments can be done either quarterly, monthly, semi-annually, or annually.

Merchandise Loan: Merchandise loan is provided by NIB Bank against physical goods/merchandise or documented evidence such as a letter of credit, warehouse receipt, export documents, and alike that will be held against as collateral for a loan. The loan is to be available for 6 months. However, it all depends on the nature of the business, which then has to be renewed every 6 months.

Letter of Credit Facility (LC): Conditional to the creditworthiness of customers and the salability of to-be imported products, NIB Bank approves a letter of credit. If a specific percentage is paid off of the value of the letter of credit, it is, the LC, to be opened with a certain percentage set by NIB Bank. The facility can be given out at one time or over a period of time, more than a year in most cases.

Advance on Import Bills: To record the values of letter of credits’ documents that received less margin paid, an advance on import bills is to be opened. Once the importer settles and collects the bill and the documents respectively, which is to clear out the goods from the customer/ port, NIB Bank can process the advance on import bills. The documents mentioned previously need to be cleared upon their arrival by the customer.

• Export Trade Financing
• Extended export trade financing services are provided by NIB Bank to its customers who are interested in it to do pre/post-shipment.
• Project Financing with a provision of medium/long term range, NIB Bank can be involved in financing projects.
• Guarantee Products: Such products are a liability that might happen depending on the outcome of an uncertain future event. Guarantee products include advance payment, performance, big and custom bonds, retention money guarantees, and alike.

Interest-Free Banking

Wadiah Amanah (Safekeeping Deposit)

NIB Bank is to accept any deposit by a customer who demands to have his principal money untouched so the money is just under safe custody with no benefits for an unidentified period of time. NIB Bank, however, is to get the depositors’ permission to use part or whole money with what suits the Shariah law. Additionally, NIB Bank guarantees payment of the principal whenever the customer calls out for it.

Required documents to open this account types are

• Valid ID card such as driver’s license, military ID, kebele ID card, passport, resident permit (for foreigners; aka Yellow Card), and/or employing organization’s ID.
• The ID cards should be renewed for NIB Bank to open a Wadiah Amanah Interest Free Account.
• Two recent, passport-size photographs.

Mudharabah Investment Saving

The customer agrees with NIB Bank to share both profit or loss based on a pre-agreement on the ratio, in which the customer deposits his/her money for an unidentified period of time. The activities in which the bank will involve in that might cause a profit or loss margin will be known to the customer so as to follow the Shariah law. NIB Bank might restrict the customer to withdraw his/her money at specific times based on the pre-agreement, although he/she is at any time can withdraw the money.

Basic features:

• Customers/depositors save their money for the benefit of profit-sharing for unidentified time;
• The profit rate to be paid is determined based on the bank’s performance during the profit payment period, which will be announced.
• The account is opened with a zero profit-sharing margin. However, from time to time, NIB Bank notifies the percentage of profit share to be paid to the depositors’ account and credits the account.
• The required minimum initial deposit balance to open the account and to be permitted for profit sharing for any profit distribution period is Birr 500.

If the Bank suffers losses in its business ventures, the loss will be compensated to the customer/depositor/investor using a reserve account.

However, if the reserve wasn’t able to cover the loss, it will totally be borne by the customer/depositor/investor (unless there is evidence of gross negligence on the part of the Bank).<>

An account that shortfall the minimum deposit requirement, during the Profit Payment Period, shall not be eligible for profit sharing, as it didn’t satisfy all the requirements.

Customers are allowed to withdraw, from their credit balance, without any restriction/limitation as to its amount and timing, which the bank will have a pre-agreement with the customer.

Account operation is to be via the use of formats prepared for this sole purpose.

There will be no service charge in relation to operating the account. There could be any service charges if the transaction is effected/done through ATM, POS, or other cash ways, passbook changes, and other cost recovery activities.

Mudharabah Fixed Time Deposit

Basic features:

It is similar to the Mudarabah Saving, but the time deposit is opened for a specific period of time, namely as “term”.

The profit-sharing margin might vary from a customer to another due to the amount of deposit they have as well as the timeframe they put their deposit with NIB Bank.

A Certificate of Mudarabah Time Deposit, known as (CMTD), will be issued to the depositor/customer.

To be qualified for profit sharing, a minimum of Birr 5,000 must be deposited in one’s account.

Depositors are not allowed to participate in the management of the investment of the funds. Costs of managing each of the investment funds, like employees’ salaries, is to be carried by NIB Bank, known as “the Mudarib”. If the customer/depositor requested in the Mudharabah deposit opening contract, a fixed time deposit will be automatically rotated for the same timeframe.

About deposit duration, NIB Bank offers its customers are three options:

• A Mudarabah Fixed Term Deposit for 3 months.
• A Mudarabah Fixed Term Deposit for 6 months, and
• A Mudarabah Fixed Term Deposit for 12 months.

NIB Bank calculates the profit on the deposit on a monthly basis. However, it credits to the depositors’ account on or after the maturity of each deposit contract(s).

Mudharabah (cost plus profit)

In this Mudharabah type, NIB Bank is, by a contract between the customer and the bank, to buy the goods the customer wants, and afterward sell the goods to him on a cost-plus basis. On the contract, the profit and the payment are stated. NIB Bank is the owner of the goods until the bank sells it to the customer. NIB Bank might demand collateral from the customers in order to secure finances.

Services included in Murabaha are, but not limited to, of the following:

• Term Financing- For purchase of inputs, machinery, or short-term project financing.
• Revolving Financing Facility:
  • For the purchase of inputs:LC (Letter of Credit) Financing:
  • For purchase of inputs & machinery from overseas:Pre-shipment and Post-shipment Financing
  • For the purchase of goods to be exported.

Requirements needed to be fulfilled from Exporters

• Previous export performance Condition of warehouse and processing plant
• Export sales contract (Bona-fide order from foreign buyer)
• Type & Quantity export plan

Requirements needed to be fulfilled from Importers

• Past import performance
• Pro-forma invoices
• Approved purchase order (if any)
• Letter of credit opened
• Marketability of the goods to be imported

Requirements needed to be fulfilled from Manufacturers

• Full description of the installed machine that has the following information: country of origin,year of manufacture, status and alike
• Capacity of Production
• Availability of spare parts & raw material
• Raw materials consumption ( both Local and foreign)
• The salability of the goods that will be manufactured & sale outlets as well.

Selam (Advance Payment)

NIB Bank avails this service for its customers in cash. Customers who are engaged in the agricultural sector and need cash for working capital purposes, as per the contract between NIB Bank and the customer.

This is of such a sales agreement where the customer should deliver the following:Quality, Quantity, Type and Given Period to the Bank

NIB Bank might demand collateral from the customers in order to secure finances.

Istisna’ (Work-in-Progress)

At an agreed price, Istisna works as a mode of sale, where NIB Bank does order to a manufacturer/contractor so those can do the manufacturing, assembling, or construction of a particular commodity that will be sold to a purchaser

Specific Requirements set by NIB Bank

• Approved construction plan
• Lease agreement:Receipt of lease amount paid
• Bill of Quantity
• Agreement withContractors,Manufacturer,Supplier
• Comprehensive feasibility study
• Project implementation schedule
• Certificate of ownership

Ijarah (Lease Financing)

This type of financing is used for finances regarding the building, construction, and agriculture sectors. However, all types of equipment must be leased

NIB Bank, or here known as lessor, gives out the capital goods to the customer, or here known as lessee, for a pre-agreed upon timeframe and consideration. Once the payment has been done, NIB Bank shall transfer the ownership of the assets to the client

Specific Criteria for Ijarah Financing

Besides the known eligibility criteria, terms, and conditions of Ijarah, the customer must fulfill these requirements:

1. Both the supplier and lessee should not be of affiliated companies.
2. The lessee must sign a letter of continuity, which the lessee here states using the leased asset in the lease period based on the pre-agreement.
3. The lessee/customer is to give out any needed documents as required in the checklist as well as any other demanded documents.
4. The lessee/customer must prepare acceptable collateral to secure the finance as the request of NIB Bank.

Required Documents for all Applicants

• Recent Tax Clearances
• Audited Financial Statement
• Renewed Trade License
• Marriage Certificate of Borrowers & Mortgagors
• An Application Letter
• TIN (Tax Identification Number)
• Memorandum & Articles of Association
• If he/she/it is a PLC, S.C., etc
• Ownership Documents
• Land Holding Certificate
• Ownership Booklet, etc

Qard (Current Account)

Similar to a current account, it is operated by cheque. Used for investment, Qard is a free loan to the bank, as it follows the principle of Qard Hassan. The loan is used for investment and alike operations

Required documents to open a Qard account

1. Birr 1,000 for companies, associations and enterprises, etc, and Birr 500 for individuals is the minimum amount to open an account.
2. Cheque Books and formats prepared for this purpose are the only way to execute operations on this account
3. NIB Bank accepts to pay on demand any amounts outstanding in the Demand Account in full amount.
4. NIB Bank might request for a service charge which will be determined from time to time, in accordance with the operation of the account for instance for Cheque Book issuance and alike.

There is no allowance for overdraw on either demand or Qard accounts.

Local Transfer

Nib International Bank offers the Local Transfer among its unique services provided to its customers.

NIB Bank offers the following transfer outlets Mail Transfers,Demand Drafts, Telegraphic / Telephone Transfers, CPO, Cashier Payment Order

International Banking

Trade Services

Nib Bank provides multi-services to clients in different trade sectors.

Letter of Credits

This is an obligation by NIB Bank to pay the seller of the goods/services a sum of money if the seller showed the demanded documents that were mentioned in the terms of the credit.

Required documents for Import Letters of Credit approval

• TIN, Known as “Tax Identification Number”, and/or Insurance Certificate
• Valid trade licenses.
• 3 copies of the proforma invoices
• One set of import applications & Letter of Credit of applications.

Export Letter of Credit

The issuing bank, which is a foreign bank on behalf of a foreign importer, defines all the needed requirements from its customers in the LC (Letter of Credit). It also undertakes all drafts drawn in confirmation to the known credit terms as well as its conditions.

Required documents for Export Letters of Credit approval

• One set of export application(s).
• TIN – “Tax identification number” – certificate.
• Valid trade license for export.
• Three copies of the invoices.
• A copy of the sales contract and authenticated Letters of Credit.

Cash Against Documents

The suppliers/sellers submit documents into their drawer’s bank, and that is after the documents are forwarded to the importers automatically. It is to be on a collection basis that the customer presents the documents required.

Required documents for Import – Cash Against Document (CAD) approval

• Three copies of proforma invoices.
• Three copies of the chambered invoice, certificate of origin, and packing list.
• Three copies of shipping documents
  • Airway Bill
  • Railway Bill
  • Bill of Lading
  • Truck Manifest
  • Courier and/or carrier freight invoice
  • Quality Standard Code of Products (CQI) Certificate – in case of import from China.
• One set of import applications.
• Tax Identification Number (TIN) Certificate.
• Valid trade licenses.
• Insurance certificate.

Required documents for Export – Cash Against Document (CAD) approval

• Three copies of invoices.
• A copy of the sales contract.
• One set of export applications.
• Valid trade license for export.
• Tax identification number (TIN) certificate.
• A letter declaring the exporter’s commitment to repay the full amount of the export proceeds in foreign exchange.

Advance Payment

Here, a seller receives a payment from a buyer before the shipment occurs, the agreed goods, or providing the agreed-upon service.

Required documents for Import to approve Advance Payment

• Three copies of proforma invoices.
• One set of import applications.
• Insurance certificate.
• TIN – “Tax Identification Number” –  Certificate.
• Valid trade licenses.
• A letter declaring the exporter’s commitment to repay the full amount of the export proceeds in foreign exchange, or to produce a customs declaration for the entry of goods into Ethiopia.

Required documents for Export to approve Advance Payment

• Three copies of invoices.
• One set of export applications.
• TIN – “Tax Identification Number” –  Certificate.
• Valid trade license for export.
• Tax identification number (TIN) certificate.
• A copy of the sales contract.
• Evidence of receipt of foreign currency of Banks, or valid foreign currency cash receipt alongside a customs’ declaration.
• Charges are to be collected as set by NIB Bank’s terms & tariff and that is only in the case of foreign currency cash receipt.

Forex Services

NIB Bank purchases and sells foreign currency in cash notes in all of its branches. NIB Bank simplifies the following services, and they do that by using respectable and credible correspondent banks:

Following the national bank of Ethiopia directives, NIB Bank showed efficient Money Transfer services

• Correspondent Banks
• Money Transfers:NIB Bank bounds all types of local and international money transfers, to and from Nib International Bank. Money transfers by Nib international Bank are categorized into the following:

Incoming Transfer

This is targeted at those who are beneficiaries of money transfers and are living in Ethiopia.

Transfers might take one of the following forms: Fund transfer through NIB Bank’s SWIFT Code: NIBIETAA or From Bank to Bank transfers and  Through Remittance Service Providers currently, Nib International Bank is working with Western Union, Express Money, Golden, Dahabshill, Trans Fast, Ria, Money Gram, and Hodan Money Transfer.

Outgoing Transfer

This is targeted at those who are beneficiaries of money remittances and are living abroad.

Transfers might take one of the following forms: From Bank to Bank transfers and payment for different purposes such as Education, Membership, Training, Medical, Insurance etc.

Digital Banking

Electronic Banking

ATM

Nib International Bank has located ATMs at most places for NIB’s

• debit card
• Visa international
• MasterCard, and
• UnionPay cardholders.

Any NIB Bank customer can access his/her own accounts 24/7.The following are a list of services available on Nib International Bank ATMs:

The services include

• Withdrawal:To withdraw a sum of money
• Balance Inquiry:To know the remaining balance in the account.
• Short statementTo view a short statement.
• Change PIN:To change your PIN at any time
• Money Transfer:To transfer money from an account to another account.
• POS Terminals:To perform payments for goods and services through Point of Sale, or POS.

POS

Nib International Bank provides its customers with access to financial transactions in a public space.

Customers can now start using Nib Point of Sale, or known as (POS), terminals that have been located and distributed at chosen market sites and service renderings organizations, such as Restaurants, Hospitals, Hotel, And Gas stations. NIB Bank’s customers may pay for goods as well as services they have purchased without carrying any kind of cash.

 NIB Card

Aside from having a state of art technology, Nib International Bank has started  Card Banking Services by the recognized company, named PSS, or Premier Switch Solutions

Card Banking Services are always available at specific Hotels,NIB’s branches, Investment areas and at University / College areas.

Internet Banking

Through Nib International Banking Internet Banking service, customers can enjoy online services with easy, real-time access to their account, in the comfort of their home, office or from any remote location

Services provided by NIB Bank’s Internet Banking (IB):

Account microservices:

It allows customers to view their account balances as well as print transactions that are 45 days old.

Account microservices via Internet banking allow customers to create, display, or delete a scheduled payment for a fixed amount with a limited time frame.

Additionally, NIB Bank’s Internet banking enables its customers who are subscribed to the Internet Banking service to view details of:

• loans
• term deposit and
• advances accounts.

Transfer:

NIB Bank’s transfer service in Internet banking permits its users to perform movements of funds between their own account and/or payment to receivers. Such services include

Own Account Transfer

It allows a customer to transfer funds between his/her own accounts.

Receiver (someone you will do money remittance to)

This enables customers to either create, view, and delete beneficiaries/receivers.

Transfer to Beneficiary/Receivers

Customers can do payments for already existing beneficiaries.

Local Money Transfer System, or known as (LMTS)

It allows NIB Bank’s customers who are using the Internet Banking service to easily execute payments to a walk-in customer even though if the recipient does not have an account with NIB.

The recipient/beneficiary is able to withdraw from any nearby NIB branches by providing the security number that is given when making the transaction.

Message

This functionality enables you to compose, send, and receive messages to/from the Bank. It allows a customer to:

• Send
• Receive and
• Compose messages to and/or from Nib International Bank

Cheque:

Customers of Nib International Bank who are subscribed to the Internet Banking service can manage their cheque online. The checking includes:

• Cheques that are already presented to NIB Ban
• View cheques generally
• View paused/stopped cheques
• Order and/or stop payment on the customer’s lost
• Destroyed and/or stolen cheques
• Request a cheque book by stating the number of leaves a customer needs.

Mobile Banking

Mobile banking is a service that enables customers to access and manage their account 24/7 through their mobile phones.

From its name, Mobile Banking is an enabled service provided by Nib International Bank to customers who would like to access and manage their account 24/7 through their mobile phones.

Services that are provided by NIB MOCASH:

Account Inquiry

General Information about your own account. It can have mini Bank Statements, which contain the latest five transactions.

Own and Other Fund Transfer

Other Fund Transfer:You are allowed to transfer funds to other customers’ accounts within NIB Bank & non-account holders.

Self-Fund Transfer

You are allowed to transfer funds between your own accounts.

Local Money Transfer

This enables the customer to send money to the walk-in customers.

Beneficiary Payment

Customers have the ability here to transfer to a registered account number (Beneficiary/Receiver).

Cheque

Cheque services include one Can stop cheque payment(s), Can request a cheque book, and Can view cheque status(s).

Customers of Nib International Bank can call to *865# to know more about and use NIB Bank’s mobile banking services.

Nib Bank Credit Scores and Credit History:

1. Credit Rating: As per the report, Nib Bank has been assigned a credit rating of BB- (Lower Medium Grade) by the Ethiopian Credit Rating Agency (ECRA). This rating indicates that the bank has a moderate credit risk profile.
2. Creditworthiness: The bank’s creditworthiness is assessed as “fair” by the NBE, indicating that it has a moderate ability to meet its financial obligations.
3. Credit History: Nib Bank has a relatively stable credit history, with a low non-performing loan (NPL) ratio of 2.3% as of December 2023.
4. Loan Portfolio Quality: The bank’s loan portfolio is diversified, with a mix of short-term and long-term loans, and a focus on lending to small and medium-sized enterprises (SMEs), agricultural sector, and microfinance institutions.
5. Credit Risk Management: Nib Bank has implemented robust credit risk management practices, including credit scoring, collateral requirements, and regular monitoring of borrowers’ performance.
6. Capital Adequacy Ratio: The bank’s capital adequacy ratio stood at 21.5% as of December 2023, which is above the regulatory requirement of 13%.
7. Liquidity Ratio: Nib Bank’s liquidity ratio was 34.1% as of December 2023, indicating that it has sufficient liquidity to meet its short-term obligations.

Key Risks:

1. Operational Risk: The bank is exposed to operational risk due to its reliance on manual processes and inadequate IT infrastructure.
2. Liquidity Risk: Nib Bank may face liquidity risk due to its significant dependence on short-term funding sources.
3. Market Risk: The bank is exposed to market risk due to fluctuations in interest rates and foreign exchange rates.

Recommendations:

1. Improve IT Infrastructure: Nib Bank should invest in upgrading its IT infrastructure to reduce operational risk and improve efficiency.
2. Diversify Funding Sources: The bank should explore alternative funding sources to reduce its reliance on short-term funding.
3. Enhance Risk Management Practices: Nib Bank should continue to strengthen its risk management practices, particularly in credit risk assessment and monitoring.

Contact Information

Toll-free Number: 9698

Nib bank phone number: +25115503288

Nib bank email address: [email protected]

SWIFT: NIBIETAA, Addis Ababa, Ethiopia

Nib Bank Head Office: Ras Abebe Aragay St, Addis Ababa, Ethiopia