Journal for Studies in Management and Planning http://edupediapublications.org/journals/index.php/JSMaP/ Available at e-ISSN: 2395-0463 Volume 02 Issue 4 April 2016 Available online: http://edupediapublications.org/journals/index.php/JSMaP/ Page | 231 Financial Sector Liberalization in Ethiopia: Resistance, Justification and Its Credibility Tefera Assefa Lecturer and Department Head Department of Public Administration and Development Management College of Business and Economics Dilla University Email: teferaasefa@gmail.com Abstract The paper concerned with the assessment of resistance, justification and the credibility of this justification in financial sector liberalization in Ethiopia. Financial liberalization is an integral part of the overall economic liberalization. It is a set of operational reforms and policy measures designed to deregulate and transform the financial system and its structure with the view to achieving a liberalized market- oriented system within an appropriate regulatory framework. The full financial liberalization involve six main dimension: the elimination of credit controls, the deregulation of interest rates, free entry into the banking sector, bank autonomy, private ownership of banks, and the liberalization of international capital flows. Most of these dimensions are lacking in Ethiopia because they lack political supports and the politician resists the proposal and advice from international financial institution. The paper attempted to address the details of the political resistance and justification of the politicians for resisting financial sector liberalization. The credibility and soundness of the justification was also assessed. For this purpose data were collected from different secondary data such as journals, article and books. Manuals and reports were also used to substantiate secondary data. Qualitative research approach was used in analysis of the data. It is found that financial sector liberalization in Ethiopia is very low in comparison with some neighboring countries and the sector remains poor and under developed. The majority of populations are out of reach of