Goh Betoch Bank Halts Mortgage Lending Due to Structural Liquidity Mismatches

Goh Betoch Bank, which operates as Ethiopia's sole specialized mortgage lender, has been forced to halt its long-term mortgage lending operations. The decision came after the financial institution's loan-to-deposit ratio soared to an unsustainable level, making continued long-term lending financially unviable. This sudden freeze highlights severe structural liquidity mismatches that currently exist within the country's broader financial sector. The suspension occurs at a critical juncture as federal authorities and policy researchers actively move to establish a National Housing Fund. Additionally, plans were underway for a 100 billion birr mortgage refinancing initiative to support housing development. The bank's situation underlines the urgent challenges facing specialized housing finance institutions in Ethiopia today.