The issue came to light early on Saturday when customers discovered they could withdraw more money than was available in their accounts at CBE. Reports from local media suggest that over $40 million (£31 million) was withdrawn or transferred to other banks before the institution could intervene and freeze transactions.

According to CBE President Abe Sano, much of the funds were withdrawn by students from state-owned CBE accounts. The news of the glitch spread rapidly across university campuses, predominantly through messaging apps and phone calls.

Witnesses reported long queues forming at campus ATMs, with one student from Jimma University Institute of Technology describing how the situation escalated until police officers intervened to halt the withdrawals. Meanwhile, another student from Dilla University in southern Ethiopia recounted how peers made withdrawals from CBE accounts in the early hours of the morning.

The incident left many incredulous, with some initially disbelieving reports from friends about the ability to withdraw large sums from ATMs or transfer funds using the bank's app.

CBE, established 82 years ago, serves over 38 million account holders, underscoring its significance within Ethiopia's financial landscape. As the bank endeavors to rectify the situation and recover the lost funds, the incident serves as a stark reminder of the vulnerabilities inherent in digital banking systems and the importance of robust safeguards to protect both financial institutions and their customers.