The bank is reportedly attempting to recover more than $40 million.
Ethiopia's largest bank, the Commercial Bank of Ethiopia, is facing a major financial headache after a technical glitch allowed customers to withdraw more money than they had in their accounts. The bank is now attempting to recover a reported $40 million, according to The BBC.
Local media reports indicate university students were the first to exploit the glitch, spreading the news on social media and withdrawing significant sums. The exact amount withdrawn remains unclear, with the bank only confirming half a million transactions during the glitch. However, a local newspaper estimates the losses at around $42 million, as per the news outlet.
Fortunately, Ethiopian officials have ruled out a cyberattack, attributing the incident to a routine system update gone wrong. The banking system was shut down for several hours while the issue was rectified, leaving customers temporarily unable to withdraw cash.
Long lines formed at campus ATMs, with a student in western Ethiopia telling BBC Amharic people they were withdrawing money until police officers arrived on campus to stop them.
The student, who attends Jimma University Institute of Technology, said he "did not believe it was true" when his friends told him at around 01:00 local time (22:00 GMT) that it was possible to withdraw large amounts from ATMs, or transfer the money using the bank's app.
Another student at Dilla University in southern Ethiopia said a number of his peers retrieved money from CBE between midnight and 2:00 local time.
Ethiopia's banking operations experienced a temporary closure lasting several hours to resolve the issue, resulting in customers being unable to withdraw cash. The Commercial Bank of Ethiopia, established in 1963, is the largest bank in the country, serving a customer base of 40 million individuals.