Yared Hailemeskel, an Investment Advisor, told Ethiopian Banks to protect themselves from the threats of financial liberalization.
The Advisor has presented his survey findings regarding the financial sector liberalization on the fifth edition of the East African Finance Summit on Wednesday.
Ethiopian Banks have lower capital; less developed in technological aspects and banking services, said Yared, who is a Managing Director and Consultant at YHM Consulting PLC.
Ethiopian banks are not that much risk-taker compared to the global competitors, said Yared, adding, “Therefore, when global banks enter into the Ethiopian market, the local ones could face a threat”.
He recommends that, “Local banks should have to work hard to solve the possible dangers”.
“As far as the government is in a preparatory stage to open up the financial market to global institutions, these banks should get out of their comfort zone and ready for international competitions,” as Yared puts it.
Likewise, Ahmed Shide, Minister of Finance, who was a guest of honor at the Summit, told the banks to get ready for global competition.
Though the government did not set an exact time table to allow foreign banks to do businesses in the country, it signaled a big appetite towards their entrance.