Commercial Bank Ethiopia CBE has stopped issuing loans to its customers reportedly. The bank has not specified reasons behind this decision.
Yesterday, several CBE customers reported that their process of issuing of loan had been suspended. Though bank is still receiving applications from customers who are applying for loans.
The suspension could be linked to lack of funds. Last month Commercial Bank Ethiopia systems were hit by a technical glitch. The bank lost around $14 million during the glitch. Thousands of illegal money transfers and transactions were made during the several hour long glitch. CBE is in the process of recovering its loss. Around $10 million have been recovered so far.
Shortage of funds is being attributed to low savings collection by the bank this year. CBE could not meet its target of savings collections this year.
The decision by the bank to suspend lending seems to be temporary. Customers are voicing their concerns about the decision. CBE is a major lender to customers in Ethiopian banking industry.
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