Finance
Ethiopian central bank limits commercial lending to tackle inflation
Written by
African Business
Published on
22 April 2024
The National Bank of Ethiopia (NBE) has announced measures to limit the amount of capital being lent by the country’s commercial banks in a bid to bring down inflation.
In a monetary policy statement released last week, the Ethiopian central bank introduced a new rule that restricts banks’ yearly credit expansion to 14%.
Part of the reason for this restriction is that commercial lending in Ethiopia has soared in recent years. In the twelve months ending February 2023, banks lent a total of 382bn birr ($6.9bn) – an 80% increase compared to the 209.6bn birr ($3.8bn) that was lent the year before.
Written by
African Business
Published on
22 April 2024