The Commercial Bank of Ethiopia (CBE) is to launch interest free banking service starting from Monday, October 28, 2013, in its 23 selected branches in Addis Abeba and in other major regional towns, Fortune reported.
The CBE has notified of the launching of its service and recieved approval from the National Bank of Ethiopia, according to Ephrem Mekuria, communication manager at CBE.
The National Bank of Ethiopia’s (NBE) directive on interest-free banking prohibit receiving and paying interest.
Services offered under the CBE's interest-free banking service include deposits, foreign exchange and money transferring services, and will be available for customers in trade partnerships, agricultural forwards contracts, construction, manufacturing and import-export business activities.
The NBE allowed interest free banking service in October 2011. Oromia International Bank (OIB) become the first to launch the service a few weeks ago.
Source: Fortune
