Effect of COVID -19 on the Banking Sector in Ethiopia

Abstract

The banking industry in Ethiopia has been experiencing an unprecedented period of growth andprosperity before COVID-19. However, the pandemic has started disturbing the way ourfinancial institutions are operating at the moment. From this study, it was anticipated that theperformance of the banking sector in terms of Deposit Mobilization, Loan and Advances,International Banking and Profitability might be negatively affected. With all eyes on them,banks need to play the dual role of money transmission mechanisms and socioeconomicstabilizers. They need to do well to ensure their customers get all the supports they need.Therefore, managers should vigilantly work hard to minimize the negative effects of thePandemic.