Banking industry suffered 1.8 bln Birr in fraud losses in four years

Banks have lost 1.8 billion Birr due to fraud over the last four years, according to a new study undertaken by the Ministry of Justice.

Commercial Bank of Ethiopia (CBE) accounts for 51 percent of the money lost due to fraudulent activities. It is followed by Bank of Abyssinia (17 percent), Oromia (8.5 percent) and Wegagen banks (8.2%), according to reports from media outlets.

“Such activities are causing a mess in the banking industry,” said Fekadu Tsega, State Minister of Justice.

The findings of the new study announced on Monday in an event that is being held at Sheraton Addis.

“I don’t recall such a study conducted previously, at least never since I became a governor,” said Yinager Dessie, Governor of the National Bank of Ethiopia (NBE) as he officially opened up the event.

The Justice Ministry reviewed 155 cases as a sample while undertaking the study. Out of this, 78 were linked with the state giant, CBE.