Rammis Bank (kan hundeeffamaa jiru)

About Rammis Bank (kan hundeeffamaa jiru)

Rammis bank is an interest free bank established to promote inclusive finance for all. This interest free banking business will put its flavor into and creates dynamism in the banking business with alternative financial instruments – both for financing and deposit services. In addition,

Rammis Bank will deliver finance on a non-collateral base and will improve financial inclusiveness and promote partnership in business and economic development. Generally, the bank will engage in general and retail banking businesses based on the Islamic values and principles. In Ethiopia, currently access to institutional finance is at its lowest, i.e., not more than 30%. Thus, some of the major reasons to establish Rammis bank are:

• Huge demand gap which is huge market for banks.
• Investing in banking business is found to be profitable.
• Government policy shift to develop inclusive finance – which allow establishment of interest free banking businesses.
• The muslim community were left out from the banking business and services , mainly because of incompatibility of conventional bank to its religion and initiating interest free banking business is to support the community.
• Participating in banking business will encourage investment in other economic sectors.
• Currently, the economy is shifting from agriculture to businesses, services and industry which are capital intensive – and mainly obtain from banks.
• Banking industry has ability to create huge employment which is currently major social and economic problems.