The delicate and unnecessary management of part of the state accounts that existed in Ethiopia during the military rule (1974-1991) constituted a notable obstacle to monetary development. Since taking power in 1991, the current government has made various changes. For example, in 1994, the legislator legitimized local private interest in the management of the banking sector. Furthermore, he rebuilt the two development banks into merchant banks and presented another banking and monetary proclamation which gave more autonomy and further clarified the activities of the National Bank of Ethiopia as controller and administrator for the management of an account segment. Say no to plagiarism. Get a Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get an Original EssayDespite the fact that the procedure has lasted two decades, the savings segment remains stifled as the change procedure has been meticulously moderated and the measurement approach updated so far are not completely satisfactory. To date, these measures miss the goal of fundamentally improving the management part of an account. It is not yet focused and productive, nor is it capable of accelerating the monetary development of the nation, which remains minimal. Also lost is the administration's worry that a money-related advance could cause a money savings emergency that could come full circle into a money emergency. Precise examinations confirm that as the instruments of administration and control are redesigned and control becomes more and more energetic, the probability of an economic crisis decreases considerably. The time has come to perceive this logical inconsistency and it is wise to start the process of incredible change to achieve monetary quality. Global experience suggests that greater rivalry between private banks and external banks can achieve greater benefits, in the form of improved productivity. Key market-oriented measures are thus expected to further strengthen the fiscal division to accelerate Ethiopia's financial development. In order to maximize and accelerate the monetary development process, the current administration of Ethiopia has undertaken various changes to improve the proficiency and intensity. from the money saving part. Change measures attempted by the administration so far include addressing the general problem of non-performing loans faced by state-registered banks; reconstitute both the Development Bank of Ethiopia and the Construction and Business Bank into commercial banks. open the conservation part of money to speculation by private households; and inform another manager of an account demonstration to give more autonomy to the National Bank of Ethiopia. The key provisions of these changes in Ethiopian savings administrations were basically tailor-made to expand access to customers, improve efficiency and strengthen rivalry. Although the field of money custody has grown quite a bit since 1994, when the change measures mentioned above were implemented, until now, managing an account division still remains monopolistic, unnecessary and not equipped to improve the intermediation of private funds. . As a result, the currency conservation framework's commitment to encouraging Ethiopia's monetary development is marginal. This article, as the title suggests, aims to critique and supplement the banking sector reform in Ethiopia by Drs. Desta Asayehgn and Admassu Bezabeh, published by (IDEA) Inc.(www.africanidea.org/Banking_sector_in_Ethiopia.html). I found their summaries interesting, especially in some parts where the authors make strong arguments and oppose government policies. as constructive criticism and I will endorse ideas with which I agree. However, on some of their ideas I have different views, reservations and disagreements; So I will critique these ideas with the aim of providing input and insight for future considerations. In this way, when I evaluate and complete the banking sector reform in Ethiopia, I expect to grasp from a broader perspective these linkages with the framework of the Ethiopian economy in and large and fiscal agencies especially. Deeper views therefore allow us to examine the degree and extent of general execution of local Ethiopian banks and how they are affected by the external banks section. This article therefore goes beyond study and supplement to recommend and take care. of a remarkable problem that affects (from time to time affects) the Ethiopian economy. Problems are solved when we give them a lot of imaginative attention and in this particular case I found Drs. Desta and Admassu's summary is not just an accidental commitment but rather a fundamental part of the innovative procedure aimed at solving Ethiopia's problems. It is to the last soul that I take pleasure in showing this article to the readers, but the central proposition of my article highlights the needs of Ethiopia according to a set of criteria that should be developed by the Ethiopian government. In any case, the Ethiopian government should also be open to exploiting external data sources presented by educated Ethiopian people which could have far-reaching consequences on strategy development. For Ethiopia to experience significant economic growth, the authors list the following suggestions: Review the administrative and supervisory capacity of the National Bank of Ethiopia to restore the confidence of the society at large in the conservation part of the 'money. The privatization of Ethiopia's main state-owned commercial bank is not a major concern; Authorize the passage of external banks (foreign banks) into Ethiopia; and allow market forces to determine interest rates as well as the value of the Ethiopian Birr (ETB) I disagree with points 2 and 3 and agree with points 1 and 4. Please allow me to begin my analysis.1. Review the administrative and supervisory capacity of the National Bank of Ethiopia in order to restore the confidence of the society at large in the maintenance of the banking sector. I agree with the creators that the National Bank of Ethiopia (NBE) must attempt periodic fundamental changes in itself and update its administrative and supervisory structures. capacity “to restore the confidence of the general population” as well as to ensure the proper functioning of money-related establishments in Ethiopia. Regardless, it must be recognized that the NBA had to do some updating by presenting another technological and structural innovation in order to integrate the management of the accounting framework in Ethiopia. Joseph Mekonnen, author for Addis Fortune, for example, reports how the NBE has propelled new COREs managing an accounting framework: "The National Bank of Ethiopia (NBE) has launched its new electronic, online, continuous and electronic (CORE), called Quantum Intellect, on Monday 18, 2013. This will supplant the old Bank Master System … The Intellect arrangement, which was created specifically for national banks, is.necessary to solve these problems by allowing the incorporation of monetary administration, securities, remittances and settlements and general recording of efforts. allow it to maintain accurate administrative and administrative reports, as indicated in the official statement from Polaris at the time of signing the agreement. …The NBE has brought and sent new administrations and programs to support its CORE money-saving framework. After plc secured a $1 million contract in April 2013 to supply IBM 3650-M3 servers and Oracle programs for storing information, the NBA also took charge, overseeing savings accounts special, liquidation of appropriate tasks such as co-ownership. special savings both 40/60 and 20/8 0. Construction cannot be delayed due to lack of money, as long as the client conserves his money periodically and appropriately, in order to gain the trust of the company and also to speed up its service, it is far preferable and appreciable.2. Privatization of public banks to equalize competition is not a major concern. Although the authors encourage the privatization of banks to make the banking sector more productive, I consider that this is not the privatization of a state-owned company, organization or bank. makes you productive. It is the expert administration and pioneering innovation in these particular efforts that will play a decisive role in change, improvement and wealth creation. Privatization alone cannot be a viable panacea either, especially in a context of decline and gloom. We know how governments intervened from time to time to revive an economy in an emergency or restore a crumbling economy. In the midst of the last great miseries of the 20th century, John Maynard Keynes urged Franklin D. Roosevelt to turn around the American economy. In his acclaimed book, The General Theory of Employment, Interest and Money, Keynes envisaged that the state could strengthen financial development and improve the security of the private sector through loan fees, tax assessment, open businesses and experienced staff. Despite the government's initiative to improve the regulatory and supervisory capacity of the National Bank of Ethiopia (NBE), and also to try to win and succeed by improving the quality of NBE staff and technological innovation, progress made to date remains unsatisfactory. As a result, the supervisory capacity of the National Bank remains weak. In its recent report on Ethiopia dated November 2010, the International Monetary Fund "urged the Ethiopian government to strengthen the NBA's capacity to recruit and retain qualified personnel to ensure institutional absorption of the technical assistance provided by the Fund and other partners in the country. this area. »3. Do not allow entry of foreign banks into Ethiopia. The authors encourage allowing the entry of banks into Ethiopia. they emphasize the centrality of productivity and rivalry due to the entry of foreign banks into the country, and it is very likely that foreign banks could bring progress, new innovations, refined skills, gigantic resources , or even more, any link with the global economy. on the grounds that these remote or foreign banks constitute a vital part of transnational corporations (TNCs). Regardless, their entry into Ethiopia could only be done in light of the fact that “no one other than Ethiopians could work and own financial institutions,” as the nation's law states. But I am notdisagree due to reception. At this point, outside the shores of Ethiopia, when Ethiopia is still a beautiful little developing country, that could mean allowing an impressive white shark into a pool of seals where the last ones are eaten one by one by the mammoth of the ocean. The similarity between the white shark and the seal could also be attributed to the so-called transition economies of Eastern Europe, in which household banks are being overrun by banks from outside Western Europe. American banks are not yet established in Eastern Europe, with the exception of Citibank. External banks now claim a critical number of former Eastern European banks; Italian banks now occupy a predominant position in Croatia; other Eastern European banks are owned by Sweden. Another reason why I am not encouraged to enter Ethiopia by foreign banks is that Ethiopian banks, whether public or private, do everything they can to be profitable and some of them this are also privately organized banks and financial organizations and they offer Ethiopian citizens an undeniable privileged position that external banks would in no way consider as part of their fiscal philosophy. Some examples of licensed banks are Addis International Bank (AdIB), CooperativeBank of Oromia and Enat Bank. among the real investors or shareholders of these banks are traditional Ethiopian credit cooperatives, farmers and women, which means they encourage local citizens and businesses as well as affirmative action policy. The authors support the entry of foreign banks into the country due to their advanced knowledge, skills and competencies. Technological Improvement In my opinion, to acquire this high quality knowledge, skills and technology from foreign banks, it is better to acquire their knowledge and technological advancement by not letting their banks enter the country at this stage, but rather through workforce training and education. In light of the above perspectives and relative surveys on the entry of foreign banks into some developing countries or even central wage status countries, and further considering Ethiopia's new rise in the provincial and global economy, I strongly suggest that the Ethiopian government should maintain the current banking and monetary approach, especially to counteract what is happening to foreign banks in Ethiopia. This arrangement must continue until the new private banks achieve a certain advantage in quality and aggressiveness and until the modern Ethiopian base shows a striking phase of improvement.4. Allow market forces to determine interest rates as well as the value of the Ethiopian birr (ETB) The authors agree and encourage this idea. I also accept and support their idea for the following reason: eliminating government interference at all times in the banking sector is essential for the effective mobilization of savings and allocation of deposits to profitable businesses. Here are some examples of government interference that has disrupted the banking sector: First, the deposit rate on savings is set by the National Bank of Ethiopia. Until December 2, 2010, the deposit rate was 4 percent. Given that the inflation rate has averaged 19 percent over the past five years, the negative real savings rate has amounted to 15 percent. Although the National Bank of Ethiopia has.