Following are the banks operated in Somalia and owned by foreign investors and public entities:

1920          The first bank opened in Southern Somalia was the Banca d’Italia (Central Bank of Italy) which established its branch in Mogadishu. 

1925         The bank opened also another branch in Kisimayo on the 2^nd November 1925.

1930        The British Government opened in Northern Somalia the Government Savings Bank with the objectives to encourage the people to save parts of their income                                  

1932 In Mogadishu a branch of Cassa di Risparmio di Torino, an Italian commercial Bank, opens its office.

1936    A branch of Banco di Roma, an Italian commercial bank, was established       in  Mogadishu.    In the same year Banca d’Italia opened its third branch in the city of Merca.

1938     Banco di Napoli took over the branch of Cassa  di  Risparmio di Torino branch in Mogadishu.

1941     All Italian banks were closed by the British Administration.

1943     The Barclays Bank DCO, a British Commercial Bank, was opened in Mogadishu,This 

             Coincides when the British Government Army took control the southern regions of Somalia.

1950     Italian commercial banks, such as Banco di Roma and Banco di Napoli re-ope-ned their                         branches in Mogadishu.

1950   The Italian Trusteeship Administration (A.F.I.S.) established on 8^th April, 1950 a new currency  institution regulator “ Cassa per la circolazione monetaria della Somalia” with its head quarter in Rome.

Main functions of the new institution were:

a) Treasury services

b) Advances to A.F.I.S. for short term loan

c) Issuance of circular cheques and current accounts cheques

d) Acceptance of deposits from the public

e) Buy and sell foreign currencies and gold

f) Buy and sell government bonds

g) Re-discount commercial bank’s bills

h) Invest its assets, except cash kept as guarantee

1952    In Hargeysa for the first time was opened a branch of National Bank of India, a commercial bank owned by the British Government.

1954 The National Bank of India opens another branch in Berbera.

1954 In Mogadishu was established the first Government owned bank the “ Credito Somalo” founded by Decree No.2 of 22 February 1954 issued by A.F.I.S.; its main objectives were to extend financial support to the small farmers, livestock, and small scale industries and handcrafts sectors.

By Law No. 10 of 30 September 1956 the Credito Somalo was authorized to accept savings from the customers. According to the Law No.28 and 29 dated August 1957 and Law No.1 of 18 February 1959, within the Credito Somalo were established two autonomous departments: housing credit Department, and medium and long term loans facilities Department.  The capital of the Credito Somalo was So.Shs. 7,500,000 of which So.Shs. 6,300,000 was paid by A.F.I.S. and A.S.E.S. (Agency for Economic Development of Somalia), and So.Shs. 1, 200, 000 paid by banana plants cultivators companies (S.A.C.A. and S.A.G.). The bank opened also branches in Kisimayo, Baidoa and Merca.

1960 Was established the Central Bank of Somalia named “Somali National Bank” by Decree No.3 of 30 June, 1960 and converted into Law No.2 of 13 January, 1961.

The Somali National Bank has been authorized to extend to its activities to all the regions of the Republic of Somalia and opened the following branches:

The Somali National Bank being a Central Bank was not allowed to carry commercial banks operations, but, due of non presence of commercial banks in most of the regions of the country, the Government of Somalia enacted Decree No.264 of 3 November, 1962 authorizing the Somali National Bank the authority to engage in commercial banking operations.

1961 Banque de Port Said, an Egyptian commercial bank, opened a branch in Mogadishu, and operated until 7^th of May, 1970.

1968 The Somali Development Bank was established by Decree No.2 of 28 February 1968. Art.3 of the Law states that the bank main purpose to its establishment is to play a significant financial role to all economic sectors in medium and long term loans, in particular agriculture, industry, mining and tourism.

The Somali Development Bank as per Art. No. 5 of its foundation act was not allowed to accept deposits or savings from the depositors.

1968 in Mogadishu the National and Grindlays Bank established a new branch and also the bank were operating in Hargeysa and Berbera.

1968 the Credito Somalo was closed due of liquidity crises and all its assets and liabilities were transferred the to the Somali National Bank.

On the 7^th of May, 1970 all foreign commercial banks were nationalized.

The establishment of two public commercial banks.

On the 1^st January, 1971 two commercial banks were established:

1. Somali Savings and Credit Bank
2. Somali Commercial Bank

The two banks were autonomous institutions with legal personalities and a capital of So.Shs. 2,500,000 each of which 50% paid by the Somali Government and 50% by the Central Bank of Somalia.

The two institutions were fully owned by the Government, with same objectives and activities (commercial banks), their operation were based on deposits and savings and short term loans.

In 1975 there was a change to the structure of banking system in Somalia. The two commercial banks were amalgamated into the Commercial and Savings Bank of Somalia, at the same time, the Somali National Bank was renamed the Central Bank of Somalia.

In 1990 following an agreement with the I.M.F. on 1^st July, 1990 implementing the free private oriented economy, a new commercial bank was established “Somali Commercial Bank” by Presidential Decree No. 4 of 16 December, 1989, with a capital of So.Shs. 2 billion divided into two thousand shares of one million So.Shs. Each. One billion was paid jointly by the Government and the Central Bank of Somalia and one billion left to the private investors of which only 22 shares were subscribed.

Finally, the under listed banks were operating in Somalia at 30 December, 1990:

1. Central Bank of Somalia
2. Commercial and Savings Bank of Somalia
3. Somali Development Bank
4. Somali Commercial Bank