Regulatory Alerts2023-09-15
Added · Updated
Appointment of External Auditor of a Bank Directive No. SBB/86/2023
The National Bank of Ethiopia mandates that banks appoint external auditors through competitive bidding, limiting tenure to three consecutive years with a maximum of two terms (six years), and imposing a three-year cooling-off period before re-engagement. Banks must submit appointment requests for approval within 15 working days, while any contract revisions require submission within 10 working days, and removals are prohibited without prior written consent. The directive establishes specific auditor qualifications, independence requirements, and detailed audit responsibilities including verification of fair value estimates and capital adequacy ratios. It imposes fines of Birr 50,000 to 100,000 on obstructing directors or employees and allows the regulator to suspend or remove senior officers who fail to provide necessary records.