Asset-Based Segmentation of Ethiopian Banks

The National Bank of Ethiopia has categorized commercial banks into three distinct groups based on the size of their assets: large, medium, and small.

The predominant Commercial Bank of Ethiopia which is on the large group stands out holding 49.5% of the sector’s total assets and 48.7% of all deposits as of June 2023.

In the mid-tier segment of the banking sector, five bank —Awash Bank, Bank of Abyssinia, Cooperative Bank of Oromia, Dashen Bank, and Hibret Bank—collectively managed 28.0%of the total assets, 29.4% of the deposits, and their cumulative capital amounted to 31.0%as of the end of June 2023.

As the mid-year 2023 approached, the smaller-scale banking division, comprising 24 institutions, collectively maintained 22.5%of the total assets and 21.9% of the deposits within the banking industry. In addition, their amalgamated capital made up a substantial 41.6% of the sector’s capitalization.