It was established in 1905 and inaugurated by Emperor Menelik II on 16 February 1906, becoming the modern bank of Ethiopia.

After nationalization by the Derg government, the bank was re-established as one of leading private banks with share company status.

[1] The Bank of Abyssinia is the first modern bank in Ethiopia established in 1905 and inaugurated on 16 February 1906 by Emperor Menelik II;[2][3][4][5] opening its office in Addis Ababa and Harare.

In 1915, the bank began issuing banknote funded by the British owned National Bank of Egypt.

[9] On 16 February 1996, at the 90th anniversary of its inauguration, the bank was re-established as a private share company with the same name and logo.