Banking in Eritrea

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Banking in Eritrea is the dominant sector in the financial system of Eritrea. The balance of the financial system is made up by the insurance industry.

The Commercial Bank of Eritrea owns nearly 80% of all banking sector assets in the country and is state-owned. The other important state-owned bank is the Eritrean Investment and Development Bank.^[1] There is only one private bank in Eritrea and can claim only meager assets, Augaro Bank. The Housing and Commerce Bank is the only party-owned (PFDJ) bank.

Branches of the Commercial Bank of Eritrea and the Housing and Commerce Bank exist in the larger cities and towns of every Region of Eritrea.^[2] The Agricultural and Industrial Bank of Eritrea, the Eritrean Investment and Development Bank and Augaro Bank only have offices in the capital, Asmara.

The central bank of Eritrea is the Bank of Eritrea (BoE). The BoE is responsible for regulating the lending and deposit interest rates while keeping a handle on inflation and other macroeconomic indicators. As of yet the BoE has not been able to control inflation, which has led to tremendous rates of inflation, up to 23%.^[3]

[edit] References

1. ^ General Financial Sector Overview. Retrieved on 2006-08-30.
2. ^ Housing and Commerce Bank of Eritrea: Branches. Retrieved on 2006-08-30.
3. ^ IMF Executive Board Concludes Article IV Consultation with Eritrea (2005-02-09). Retrieved on 2006-09-07.