It is essential for service firms, such as banking industry to understand the dimensions of servicernbrand equity that influence customer loyalty in order to be successful in this competitivernmarketing environment. However, in Ethiopian Banking industry, various aspects of brandrnbuilding are given limited attention. The general objective of the study was to examine thernpossible relationship between brand equity and customer loyalty in the banking industry inrnEthiopia. More specifically, the study tried to see the relationship of Brand awareness, Brandrnmeaning, Companyâ€™s presented brand, External brand communications, and Customerrnexperiences with customer loyalty. Primary data was obtained through structured questionnairernfrom customers of three banks namely CBE, BOA and ZB. A multi stage stratified probabilityrnsampling technique was used to sample banking firms. The researcher proportionally distributedrn384 questionnaires to customers of the three selected banks and 327 of the questionnaires werernreturned, properly filled. The questionnaires were analyzed using SPSS version 20. PearsonrnCorrelation and multiple regressions were used to establish the relationship between thernindependent and dependent constructs of the research. The findings revealed that the threernindependent variables (i.e. brand meaning, customer experience with company and companyâ€™srnpresented brand) are statistically important determinants of customer loyalty in the bankingrnindustry of Ethiopia whereas brand awareness and external brand communications had nornimpacts on customer loyalty of banks. A conclusion was drawn to the effect that since factorrninfluencing customer loyalty have been established, banks should note these and emphasize themrnin their marketing strategy