NBE Issues Warning to Commercial Banks

The National Bank of Ethiopia (NBE) has issued a warning to commercial banks regarding the practice of paying upfront interest on time deposits. NBE Governor Dr. Eyob Tekalign addressed questions from Capital newspaper about the regulatory body's concerns regarding this banking practice. The Governor indicated that the central bank is closely monitoring the situation and considering necessary regulatory measures. This development signals potential intervention in current deposit interest rate practices across the Ethiopian banking sector.