As the Ethiopian government initiates a new corridor development plan, banks find themselves at the epicentre of a collateral crisis. However, it’s important to note that the banking sector in Ethiopia has shown remarkable resilience in the face of these challenges. Recent studies by the National Bank of Ethiopia (NBE) reveal that the industry heavily relies on securing immovable properties as collateral for loans. With the prevailing lending practice and the concentration of collaterals along main roads, banks often prioritize these properties for security.




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