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The banking system in Ethiopia was started in 1905 with the establishment of Abyssinian Bank. Its establishment was based on a fifty year agreement with the Anglo-Egyptian National Bank. A new development bank and two other foreign banks were also established in 1908. However, in 1931 the Ethiopian government purchased the Abyssinian Bank and renamed it as the Bank of Ethiopia. The primary focus of risk management is on the explicit understanding of all risks and their interactions. Participants indicate the frequencies have increased, and focus has shifted to potential trouble areas lately focus areas have been on liquidity and funding side.