Unborn Hawassa Bank Requests Transfer of Equity to Berhan Bank
New Promoters of the under formation Hawassa Bank requested the central bank to transfer the equity contributions of their shareholders to Berhan International Bank (BIB), one of the nine existing banks expected to fulfil the half a billion Birr threshold capital requirement after four years. National Bank of Ethiopia (NBE) raised the capital requirements for banks from 75 million to 500 million Br with the motive to create strong banks, in September 2011. The regulator’s directive put 13 private banks under formation, including Hawassa in limbo. Some of the banks have still not decided their fates, including some contemplating liquidation. Hawassa Bank started floating its shares in 2009, through 43 promoters, and was able to raise 20 million Br in capital from 530 shareholders. But, before it accomplished collecting the previously required amount, the central bank issued the new directive. The majority of the promoters were frustrated by the new capital requirement and gave