Assessment Of Risk And Benefits Of Foreign Banks Entry To Ethiopia

Despite heavy pressure from globalization and developed economies, the Ethiopian government continues by law to prohibit the entry of foreign banks to the country. In recent decades, international trade in goods and financial services has become increasingly important. To facilitate such trade, many banking institutions have also become international. The general objective of this study is to assess the effect of foreign bank entry in Ethiopia. The researcher employed a mixed approach to investigate the problem under study. The data were collected from higher officials of national bank of Ethiopia &18 commercial banks in Ethiopia. The collected data were analyzed by using IBM SPSS statistics 20. The finding of this research shows foreign banks entry in Ethiopia has significant effect in Ethiopian banking sector. In addition, there entry has a benefits and potential risks for the general economy of the country as well as for local banks which are currently operating in this country.

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