Effect of COVID -19 on the Banking Sector in Ethiopia

Abstract

The banking industry in Ethiopia has been experiencing an unprecedented period of growth and
prosperity before COVID-19. However, the pandemic has started disturbing the way our
financial institutions are operating at the moment. From this study, it was anticipated that the
performance 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 socioeconomic
stabilizers. 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 the
Pandemic.