Regulatory Alerts2025-12-31
Reserve Requirements (9th Replacement) Directive No. SBB/97/2025
The National Bank of Ethiopia issued Directive No. SBB/97/2025 to replace the previous reserve requirement framework, mandating commercial banks to maintain a minimum daily statutory reserve of 5% and an average monthly balance of 10% in their Payment and Settlement Accounts. The directive introduces partial reserve averaging and a lagged maintenance period, calculates requirements based on the previous calendar month's reserve base, and establishes a two-category transition schedule for 2026 to ensure stable liquidity management. Banks must submit monthly reserve base and statutory requirement reports via the Ethiopian Automated Transfer System, with non-compliance triggering financial fines based on the Standing Lending Facility rate plus three percentage points and potential administrative sanctions.