NBE yet to decide on enforcement
By Yared Nigussie
A directive from the Addis Ababa City Administration extending banks’ working hours has sparked backlash in the industry, with bankers labeling the move as “pointless and inconsiderate.”
Issued on March 25, 2025, and signed by Habiba Siraj, head of the Addis Ababa Trade Bureau, the directive obliges banks, other businesses, and transportation services to remain open for service until 9:30 PM.
The Bureau has explicitly instructed the National Bank of Ethiopia (NBE) to enforce the new hours, citing the need to align with evolving urban work cultures and to accelerate economic activity spurred by ongoing infrastructure projects, such as the government’s corridor development initiative.
However, central bank regulators have yet to decide on the matter, and banks had not officially received instruction on how to proceed when this edition of The Reporter went to print.
The regulation imposes a 10,000 birr fine on businesses and service providers that close before 9:30 PM.
A senior banking expert, speaking anonymously, criticized the order as misguided.
“This decision should be driven by market demand, not imposed by authorities. The NBE’s role is to regulate banking operations, not micromanage their hours,” he argued.
The banker stressed that banks already disclose their hours via signage, per NBE guidelines, and that extending operations should remain a competitive choice for individual institutions.
The expert referenced a past instance where some banks voluntarily stayed open until 9:00 PM to accommodate institutions needing secure cash deposits after hours.
However, he highlighted the declining relevance of physical transactions due to the rise of digital payments, mobile banking, and agent networks.
“Digital platforms now dominate routine transactions, even in small shops. Extending brick-and-mortar hours ignores this shift,” he said, calling the directive “inconsiderate, worthless, and politically influenced.”
The expert warned of logistical and financial strains, noting that extending hours would require banks to adopt shift schedules, doubling staffing needs amid strict labor laws.
“For smaller banks, salaries already consume 50 percent of expenses. Doubling staff or paying overtime is financially unsustainable,” he explained, adding that utility costs would further burden institutions.
He contrasted the city’s order with the NBE’s past mandate for banks to open two-thirds of branches outside Addis Ababa—a move targeted at boosting financial inclusion and brand visibility.
“That strategy made sense when banking access was low. Now, with digital adoption soaring, forcing extended hours is irrelevant,” he told The Reporter. “My point of view is that an institution, which is very far removed from the issue, has come up with a counter-productive idea, which can potentially harm banks.”
