Regulatory Alerts2024-06-12
Requirements for Persons with Significant Influence in a Bank (Directive SBB/89/2024)
The National Bank of Ethiopia issued Directive SBB/89/2024 to establish comprehensive fitness and propriety standards for persons with significant influence, including influential shareholders, directors, chief executive officers, and senior executive officers. The directive mandates that these individuals meet stringent criteria regarding professional experience, financial soundness, integrity, independence of mind, and time commitment, while requiring banks to implement a documented fit and proper policy subject to biennial review. Furthermore, the National Bank retains supervisory authority to conduct ongoing assessments, suspend voting or economic rights, and remove non-compliant appointees, while obligating them to promptly report any events that may alter their fitness status.