Standard: The $198B Bank 🏦

Welcome to the 84th edition of ፍራንክ Digest!

Your weekly brief on all things Finance and Investing. Quick, enjoyable reads for busy professionals in 5 minutes or less.

Here’s what’s coming your way:

• ⚡️BUZZ: South African Bank Breaks The Mold

• 📊 Economic Cycles: Ready Your Wallet For Four Seasons

•  🖼️ Big Picture

Thanks for reading!

BUZZ: The Jo’burg Guest Makes Landfall

Banking

The National Bank of Ethiopia took out its financial vuvuzela to call potential suitors for its first foreign banking license. 

The respondent? South Africa’s banking behemoth Standard Bank Group! 

For context, Standard’s total assets were $198B (R3.4t) as of July 30, 2024. For the same accounting period, CBE, Ethiopia’s big 🟪purple🟪bank, claimed that its asset were valued at $9B or ETB 1.4t. 

It’s like comparing a ሲኖ to a Hilux pickup truck: the difference is visible. 

Now, assets also include all disbursed loans so if you have an active account with CBE, you can contribute to the growth by borrowing some cash and bridging that gap, might feel like pinching an elbow but hey you might be doing God’s work here 👼

(Side Note: Deposits are actually liabilities because you can withdraw at any time so the bank is obligated to pay you back should you request it 😉)

A new bank, especially one from out of town, brings a lot of excitement. Change is good. And good change is even better.

For now, it just re-incorporated its representative office status under the new banking laws. But we think there’s more to it, as it eyes potential banking services.

What does this mean for Ethiopia?