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201 Commercial Bank of Ethopia Presentation
201 Commercial Bank of Ethopia Presentation
By
Habtu Dimtsu
Abraham Tesfaye
Contents
Introductory Remark
-Linkage Banking
-Linkage Banking in Ethiopia
Linkage Banking: The CBE experience
-Profile of the CBE
-Linkage Models and Outreach
Risks and Potentialities
Concluding Remarks
-Recommendation
In majority of the cases, the motivation for the linkage is external (driven
by regulatory pressures) than internal
Not less than 40 percent of the MFIs operate in Addis Ababa. A good
number of the MFIs also operate in Oromia and Amhara regional states
Experience
Profile of the CBE:
Established in 1963
Engage in banking activities customarily carried out by
CBs
Render services to millions of its customers through
its 205 branches spread across the country
Capital and reserve = 4.5 billion enabling it to provide
about Birr 1 billion to a single borrower
No of staff(June 2008), about 8,000
Total Deposit(June 2008)=36.97 billion birr, share of
demand deposit(60.2 percent)
Outstanding loan balance(June 2008)= 17.3 billion birr
Loan Disbursement(2008)=13.6 billion birr
COMMERCIAL BANK OF ETHIOPIA-RELIABLE AND COMMITTED TO MEETING YOUR
MANAGING PROBLEMThrough
Expanding Outreach LOANS IN ETHIOPIA
Linkage BY GEZAHEGN
Banking: The Case of the Commercial Bank of
Linkage Banking: CBE’s
YILMA
Ethiopia
Experience
Profile of the CBE:
Experience
Linkage Models and Outreach:
The CBE extends Short, Medium and long term loans
Experience
Linkage Models and Outreach:
-Equity Investment
-Direct linkage, and
- Indirect linkage
Experience
Linkage Models and Outreach:
Coffee
Loan Facility
Commercial Processing
Farms
Cooperative
s
Repayment
Loan Facility
Loan
Unions of
CBE
Wholesale Loan MFIs
Wholesale Loan
Cooperative
s Loan Repayment
Loan Repayment
Loan Recovery
Retail Loan
Loan Recovery
Wholesale Loan
Repayment
Retail Loan
Loan
SMEs
Small .Household
Farmers Regional .Cooperatives
Governments and Unions
Experience
Linkage Models and Outreach:
Outreach:
farmers’
cooperatives
MFIs 830 520 Indirect Regional govt
guarantee
Experience
Future plan
The Bank has set a plan for the upcoming crop year to disburse about 5.1
billion
birr, i.e.,
The fact that the largest MFIs are region based and the risk of default if
severe natural calamities occur(e.g. drought), especially in the absence
of crop insurance coverage
Poor infrastructure in the rural areas and the increase in costs on part of
the MFIs which will affect their cash flow and repayment to the CBE
Risks:
Thank You!!