EBR_News Mar 18, 2026
Ethiopia’s banking sector has been declared stable, resilient, and low-risk, with key indicators including capital adequacy, asset quality, liquidity, and profitability all improving over the past fiscal year, according to the National Bank of Ethiopia’s third Financial Stability Report covering July 2024 to June 2025.
The report highlights a significant macroeconomic shift: declining inflation has created a more stable environment supporting the transition to positive real interest rates, enhancing the effectiveness of monetary policy. Improvements in fiscal performance, reflected in lower budget deficits and more sustainable public and domestic debt, have reduced macroeconomic vulnerabilities and reinforced financial stability.









