Regulatory Alerts2025-03-12
Banking Business Proclamation No. 1360/2025
The Federal Democratic Republic of Ethiopia enacted Proclamation No. 1360/2025 to establish a comprehensive legal framework for licensing, supervising, and resolving banking institutions. The legislation formally opens the domestic banking sector to foreign investment while imposing strict ownership caps that limit aggregate foreign shareholding to 49 percent and strategic investor stakes to 40 percent. It mandates stringent capital adequacy, liquidity, and corporate governance standards, while granting the National Bank of Ethiopia expanded supervisory and resolution powers to safeguard financial stability and protect depositors.
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