Regulatory Alerts2016-04-25
Added · Updated
Capital Adequacy Ratio Requirement Directives No. CGFB/04/2016
Capital goods finance companies licensed by the National Bank of Ethiopia must maintain a minimum capital adequacy ratio of 10 percent, calculated as total capital divided by total risk-weighted assets. These entities are required to submit quarterly capital position reports to the regulator within thirty days following the end of each quarter. The directives establish specific definitions for total capital and total risk-weighted assets and include an annex detailing the computation methods and risk weights for various asset classes. These requirements entered into force on April 1, 2016.
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