The Short Life of the Bank of Ethiopia
The Short Life of the Bank of Ethiopia

Summary/Abstract: The Bank of Abyssinia, established in 1905, was given a 50-years concession by the Emperor Menelek II. This institution was engaged in issuing notes as well as in any kind of commercial banking business. Haile Sellassie, after acceding to the throne in 1930, could not accept that the country’s issuing bank was a foreign-owned share company and decided for nationalization.The change was implemented, however, in a soft way, providing an adequate compensation to share holders, and in agreement with the main foreign shareholder, the National Bank of Egypt. The Bank of Abyssinia went, therefore, into liquidation and a new institution, the Bank of Ethiopia, was established in 1931. The new bank, although under full Government control, retained management,staff, premises and clients of the ceased financial institution. Italian occupation of the country, in 1936, brought the liquidation of the Bank of Ethiopia.

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