Category: National Bank of Ethiopia

Directive No. SBB/10/95 LIMITATION ON ACCOMMODATION

LICENSING AND SUPERVISION OF BANKING BUSINESS -Ethiopian National Bank Directives

Directive No. SBB/10/95 LIMITATION ON ACCOMMODATION

1. Issuing Authority

These directives are issued by the National Bank of Ethiopia pursuant to the

authority vested in it by Article 41 of the Monetary and Banking Proclamation

No. 83/1994 and by article 17(1) of the Licensing and Supervision of Banking

Business Proclamation No. 84/1994.

2. Definition

For the purposes of this Directive, ‘person’ physical (natural) person.

3. Limitation on Accommodation

No bank shall, directly or indirectly, except with the prior written approval of the Bank, grant or permit to be outstanding unsecured loans, advances or credit facilities of an aggregated amount in excess of birr 30,000.=(Thirty Thousand

Birr).

3.1 to its directors, or any of them, whether severally or jointly with any other person.

3.2 To any person of whom or of which it or any one or more of its directors is

a guarantor.

These directives shall enter into force as of 1st day of September 1995.

Directive No. SBB/9/95 COMPUTATION OF RISK WEIGHTED ASSET

LICENSING AND SUPERVISION OF BANKING BUSINESS -Ethiopian National Bank Directives

Directive No. SBB/9/95 COMPUTATION OF RISK WEIGHTED ASSET

1. Issuing Authority

These directives are issued by the National Bank of Ethiopia pursuant to the

authority vested in it by Article 41 of the Monetary and Banking Proclamation

No. 83/1994 and by article 36 of the Licensing and Supervision of Banking

Business Proclamation No. 84/1994.

2. Definition

2.1 For the purpose of these Directives, the capital of a bank consists of issued

and fully paid in shares, legal reserves and other reserves to be approved by

the National Bank of Ethiopia and

2.2 The minimum capital requirement shall be applied to a bank on a

consolidated basis, including subsidiaries and affiliates engaged in banking

and financial activities.

3. Manner of computation

Risk weighted assets and percentage weight attached to each asset shall be

calculated in the manner as shown in the tables attached herewith which shall be a part hereof.

These Directives shall inter into force as of 21st day of August 1995.