Anbesa Bank shareholders seek urgent meeting with NBE Governor after board election approval revoked

A one third shareholders and the leadership of Anbesa Bank have requested an urgent meeting with National Bank of Ethiopia (NBE) Governor Eyob Tekalign after the central bank revoked its earlier approval of the bank’s 21st General Assembly minutes related to the election of its board of directors.

According to documents obtained by Capital, the NBE on June 19 withdrew a letter it had issued on June 8 to the Documents Authentication and Registration Service (DARS) confirming approval of the minutes of Anbesa Bank’s 21st General Assembly, which was held in October 2025.

In its revised decision, the central bank approved all resolutions passed at the general assembly except those related to the election of the board of directors. The NBE instructed DARS to authenticate all other resolutions while excluding the board election from registration.

Following the decision, Anbessa Bank’s board formally appealed to the regulator, requesting a review of the ruling. However, the NBE rejected the appeal in a subsequent letter issued on July 1, maintaining its earlier position and directing the bank to convene another general assembly this month to conduct a fresh board election.

The decision has prompted a strong response from shareholders. Sources told Capital that investors representing approximately 35 percent of the bank’s paid-up capital signed a petition on July 4, requesting a meeting with the NBE governor to seek clarification over the regulator’s decision and the current governance situation at the bank.

According to the sources, shareholders believe the central bank may have been misinformed about the nature of disagreements within the bank’s board of directors.
“They were led to believe that the board is deeply divided,” one source said. “Differences of opinion among board members are normal in any institution and are part of healthy corporate governance, particularly on issues affecting the bank’s profitability.”

However, the sources claimed the dispute extends beyond ordinary governance matters and involves broader political interests linked to Tigray.

They noted that Anbesa Bank has significant exposure to businesses and customers in the region, many of whom were severely affected by the northern Ethiopia conflict that erupted in November 2020.

According to the sources, the bank currently holds approximately 12 billion birr in non-performing loans (NPLs), with a substantial portion linked to borrowers in Tigray, including companies affiliated with EFFORT, the conglomerate historically associated with the TPLF.

The disagreement within the board reportedly centers on whether the bank should extend new loans and allocate foreign currency to companies that already have large outstanding debts.

“Some board members have been pushing for additional financing and foreign currency allocations for companies with significant unpaid loans,” one source said. “The majority of the board has opposed those requests, arguing that such decisions would violate prudent banking practices and regulatory requirements.”

Sources added that the current leadership believes its primary responsibility is to safeguard the bank’s financial stability while complying with NBE regulations.
“They have resisted pressure to provide fresh financing to heavily indebted borrowers,” the source said. “As a result, another group is attempting to replace the current board with directors who would be more supportive of those interests.”

In addition to the shareholders’ petition, Board Chairman Alem Asfaw has also formally requested a meeting with Governor Eyob Tekalign to present the board’s position and seek clarification on the regulator’s decision.

Despite rejecting the board election, the NBE upheld the general assembly’s resolution approving the bank’s capital increase after conducting what sources described as extensive verification. The approval enabled Anbesa Bank to raise its paid-up capital to more than six billion birr, exceeding the five-billion-birr minimum capital requirement that all commercial banks were required to meet by June 30, 2026.

The dispute has now evolved into one of the most closely watched governance issues in Ethiopia’s banking sector, with shareholders awaiting the regulator’s response to their request for direct engagement.