Qualitative Analysis of the Sequence and Timing of Financial Liberalization in Ethiopia

The present paper uses secondary sources to gather qualitative information on the sequence and timing of financial liberalization in Ethiopia. The approach is purely qualitative, which simply examines the sequence of financial sector liberalization measures introduced in Ethiopia between 1992 and 2008. The study aims to identify the financial sector liberalization measures introduced in Ethiopia and critically evaluate the sequence of financial liberalization programmes implemented in Ethiopia. The study found that financial liberalization programmes in Ethiopia were not properly and timely sequenced and the regulatory fences especially, restriction of foreign bank entry should be seriously reconsidered and such fences shall be soon uprooted and steps towards the establishment of financial market should be taken.