Tseday Bank Appoints Yohannes Ayalew as President Amid Turnaround Push

Tseday Bank S.C. has appointed Yohannes Ayalew (PhD) as its new president, subject to regulatory approval from the National Bank of Ethiopia (NBE), as the lender seeks to navigate mounting financial and regulatory pressures.

Yohannes brings extensive experience in macroeconomic policy, financial regulation, and bank management. He previously served for nearly two decades as Chief Economist and Vice Governor of the NBE, before leaving the central bank following Ethiopia’s political transition in 2018. He later led the Policy Studies Institute, a government think tank, and went on to head both the Development Bank of Ethiopia and Amhara Bank S.C., where he was credited with stabilising institutions facing acute financial stress.

His appointment comes at a challenging time for Tseday Bank, which reported a 2.1 billion birr loss in the 2024/25 financial year. The bank is under pressure from higher regulatory capital requirements introduced by the central bank, as well as intensifying competition, as Ethiopia prepares to open its banking sector to foreign entrants.

Tseday Bank traces its roots to the Amhara Credit and Savings Institution (ACSI), one of the country’s largest microfinance institutions, established in 1995. In 2022, ACSI transitioned into a commercial bank under a hybrid structure that allows it to operate both microfinance and conventional banking services. Under the transformation arrangement, the Amhara Regional State holds a 30 percent ownership stake.

The hybrid model has drawn regulatory attention, as the NBE has yet to issue detailed guidelines clarifying the separation of microfinance operations from commercial banking activities within such structures. Industry observers say clearer regulatory direction will be critical for Tseday Bank’s long-term operating model and capital planning.

Yohannes succeeds Mekonnen Yelewumwossen, the founding chief executive of both ACSI and Tseday Bank, who resigned last month. Since his departure, the bank has been under interim leadership, with Yeshimebet Teferra, vice president for Risk and Compliance Management, overseeing day-to-day operations.

In a statement, the board of directors said the bank’s current circumstances require experienced leadership with a strong understanding of both policy and banking operations. The board is chaired by Derese Hailu (PhD), vice president of the Amhara Regional State.

Regulatory approval of Yohannes Ayalew’s appointment is expected in the coming weeks. The new president is expected to prioritise balance sheet repair, capital strengthening, and strategic repositioning as Tseday Bank adapts to a more competitive and tightly regulated banking environment.