What Will Weed Out Ethiopia's Young Banks, Capital Regulation Or Liquidity Crisis?
In the business world, a merger refers to joining two companies into one entity. The concept has made headlines recently because the government is preparing to open the sector to foreign competition. This is the second time in recent years that the issue has taken Centre stage in Ethiopia’s financial news after the two state-owned banks – the Commercial Bank of Ethiopia (CBE) and the Construction and Business Bank (CBB)– ‘merged’ in December 2015. Advocates of mergers say they provide several benefits to the financial sector, the least of which is weeding out young banks, thereby strengthening the overall sector. Others, however, think that the concept may be too cumbersome for Ethiopia’s nascent private banking industry, which needs more time to mature.
Read more: https://ethiopianbusinessreview.net/what-will-weed-out-ethiopias-young-banks-capital-regulation-orliquidity-crisis/
In the business world, a merger refers to joining two companies into one entity. The concept has made headlines recently because the government is preparing to open the sector to foreign competition. This is the second time in recent years that the issue has taken Centre stage in Ethiopia’s financial news after the two state-owned banks – the Commercial Bank of Ethiopia (CBE) and the Construction and Business Bank (CBB)– ‘merged’ in December 2015. Advocates of mergers say they provide several benefits to the financial sector, the least of which is weeding out young banks, thereby strengthening the overall sector. Others, however, think that the concept may be too cumbersome for Ethiopia’s nascent private banking industry, which needs more time to mature.
Read more: https://ethiopianbusinessreview.net/what-will-weed-out-ethiopias-young-banks-capital-regulation-orliquidity-crisis/