ETHIOPIA’S largest commercial bank, the Commercial Bank of Ethiopia (CBE), finds itself in turmoil as customers exploit a ‘systems glitch’ to withdraw over $40 million. The incident, which occurred early Saturday, prompted panic withdrawals and raised concerns over the bank’s financial stability.
Bank president Abe Sano addressed journalists on Monday, revealing that the unexpected surge in withdrawals was triggered by a technical malfunction. He stated:
‘Much of the money was withdrawn from CBE accounts, primarily by students, exploiting the glitch.’
Reports indicate that news of the glitch spread rapidly across universities through messaging apps and phone calls. Students formed long queues at campus ATMs, capitalising on the opportunity to withdraw excess cash before authorities intervened.
Speaking to BBC Amharic, a student from Jimma University Institute of Technology described the disbelief and frenzy among students as they discovered the anomaly in the early hours of Saturday. Similar accounts emerged from Dilla University, where students admitted to withdrawing large sums between midnight and 02:00 local time.
Established 82 years ago, CBE serves more than 38 million customers, making it a cornerstone of Ethiopia’s financial sector. However, the recent incident has cast a shadow over its reputation.
Ethiopia’s central bank attributed the glitch to ‘maintenance and inspection activities’ but provided scant details about the extent of the financial losses incurred. Despite assurances from CBE officials, concerns about the security of personal accounts linger among customers.
Sano emphasised that the bank was not subjected to a cyber-attack and urged customers not to panic, assuring them of the integrity of their accounts. However, efforts to recover lost funds face uncertainty, with reports suggesting mixed outcomes in persuading customers to return the excess money.
While three universities have issued statements urging students to return misappropriated funds, the success of these appeals remains uncertain. Sano clarified that returning money voluntarily would not result in criminal charges, aiming to incentivise compliance.
As the bank grapples with the aftermath of the glitch, questions linger about the efficacy of its recovery efforts and the broader implications for Ethiopia’s financial landscape.