The Council of Ministers in its 13th regular session held on August 4, 2022, resolved to open the banking sector to foreign investors by endorsing a policy document. Following this decision, the National Bank of Ethiopia (NBE) circulated the policy along with a draft amendment to the banking business proclamation. The policy document as well as the draft legislation allow four models for the entry of foreign banks into Ethiopia, viz., acquisition of stakes in existing banks, subsidiary formation, the opening of branches, and opening of representative offices. While opening a representative office cannot amount to market entry, it has long been permitted for some foreign banks. Representative offices can only do promotional activities and, most importantly, cannot offer services to customers. There is no mention of the joint venture as an entry model, contrary to earlier reports in some media. This is not to suggest that the proposed models are not good enough. On the contrary, one may be tempted to judge that the policy gives too much in terms of entry options. With Ethiopia being the second most populous country in the continent with one of the lowest rates of financial inclusion, there was no doubt that Ethiopia’s banking market would attract interest even if the country restricts the modes of entry.