The National Bank of Ethiopia (NBE) has invalidated the board election of Anbesa Bank, ordering a new vote under direct regulatory supervision.
The move comes eight months after shareholders originally elected the current board, signaling a sharp escalation in tensions between the lender and its regulator.
The nullification centers on a contentious capital raise that has divided the bank's board and shareholders.
By stepping in to overturn the election, the NBE is asserting control over the governance process, likely to ensure the capital adequacy requirements are met in a manner consistent with regulatory expectations.
This intervention suggests that the previous board's approach to the capital increase was deemed unacceptable or procedurally flawed by the central bank.
For investors in Ethiopia's financial sector, the development highlights the persistent risks associated with regulatory oversight and corporate governance.