Regulatory Alerts2026-01-06
Requirements for Licensing a Bank Branch to Operate in Special Economic Zones
The National Bank of Ethiopia issued Directive No. SBB/99/2026 to establish licensing criteria and operational requirements for bank branches operating within Special Economic Zones. Licensed branches must exclusively serve zone residents, provide mandatory foreign exchange services, and maintain specific prudential metrics including a one percent market share, enhanced capital adequacy, and compliant liquidity ratios. Existing branches have a two-year compliance window before facing potential relocation or closure, while new applicants must secure provisional leases and pay stipulated licensing fees prior to operational approval.
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