Reappraisal of Powers and Duties of National Bank of Ethiopia:: in Light of the Current International Financial Crisis

National Bank of Ethiopia which is the defacto sole regulator of the financial industry has adequate authority which is sufficient enough to accomplish its tasks and duties as a central bank. Moreover, it may seek power wherever appears necessary as the discretion is given to it by law. However, it is not well equipped enough to properly put into practice its powers and duties. Ethiopian banking sector had not been directly affected by the international financial crisis due to its poor integration in the international financial markets, less stiff competition among the institutions, and its traditional banking system. However, this does not mean that Ethiopia had not been affected and will not be affected by the crisis. It does not also mean that the tomorrow?s Ethiopian financial system will be the same with that of yesterdays. This calls for revisiting the adequacy of the existing supervisory capacity of National Bank of Ethiopia to forestall future banking crisis in Ethiopia.