Banca per l’Africa Orientale (BAO) was an early attempt to establish modern banking in the Horn of Africa at a time when Eritrea and Italian Somaliland were Italian colonies.
It was the first tentative to create a modern banking system in all colonial Africa.
In 1914 the central "Bank of Italy" started to operate in Asmara and promoted the creation of private banks — like the "BAO" — in the Italian colonies.
The Banca Italiana di Sconto (BIS) was a leading Italian bank that indirectly supported the BAO, but BSI failed in 1921, leading to the failure of the BAO a few years later.
In late 1923 the Banca per l'Africa Orientale was officially closed.