United Bank S.C, reputable for being an innovative financial services provider in Ethiopia, has been serving its customers with the utmost care and commitment for more than a couple of decades. Through the dynamism and altering economic conditions our country faced over the years, United Bank maintained a steady financial growth, strictly adhering to the rules and regulation of the National Bank of Ethiopia.    

 

The Mandatory bill purchase policy issued by NBE in 2011, obliged private banks to settle bill payments equivalent to 27% of their loan disbursement. In turn, the policy pressured private banks to increase their lending rates and introduce early settlement penalty fees.

 

In November 2019, the National Bank of Ethiopia announced its lifting of the mandatory bill purchase policy. The NBE’s decision in this regard, creates the leverage for the financial sector to better assist the economy. Private Banks, being relieved from the mandatory bill purchase, will have more loanable fund to meet the economy’s demand for financing with a better scheme or financing structure. This leverage plays a vital role in creating conducive business atmosphere for businesses to grow their financial muscle and generate more foreign currency into the economy. It is also worth mentioning that this development will encourage and attract investments and combat inflation.

 

Following the lifting of the mandatory bill purchase policy United Bank has made the relevant assessments and passed decision to make the necessary amendments.

 

Therefore, we are pleased to announce that our Bank has decided not only to reduce its lending rates but also waive the early settlement penalty. The early settlement penalty waiver will apply to all sectors; while the lending rate reduction may vary from sector to sector depending on the priority level.  The biggest lending rate reduction is made on manufacturing for export sector that goes as high as 4.5%.  This revision shall be enforced effective January 1, 2020.

 

 United Bank is looking forward to serving customers with a wide range of financial options and service excellence.

 

United, We Prosper!