Regulatory Alerts2025-05-23
Recovery Plan of Banks Directive No. SBB/93/2025
The National Bank of Ethiopia mandates all licensed banks operating in the country to prepare, submit, and maintain comprehensive Recovery Plans that detail stress triggers, indicators, scenario analyses, and actionable recovery options. The Directive requires initial submission within eight months of its May 2025 effective date, followed by annual updates and prompt reporting of material changes, while establishing a six-month supervisory review process to identify and rectify implementation impediments. Non-compliant institutions face fixed financial penalties and administrative sanctions, ensuring banks can restore viability independently without relying on extraordinary government or central bank intervention.
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