Regulatory Alerts2024-07-19
Limitations on Investment of Banks Directive No. SBB/92/2024
The National Bank of Ethiopia issued Directive No. SBB/92/2024 to establish prudent investment limits for all licensed banks operating in the country. The directive caps aggregate equity investments in non-banking businesses at 15 percent of total capital and restricts real estate development to 10 percent, while permitting specific equity holdings in insurance companies and capital market service providers. Banks must report qualifying equity investments within 30 days and maintain strict separation between core banking operations and capital market activities.
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