Circular No. BSD04/2011

የ ኢ ት ዮ ጵ ያ ብ ሔ ራ ዊ ባ ን ክ NATIONAL BANK OF ETHIOPIA ADDIS ABABA

FIS/BSD/413/2011 November 25, 2011

All Private Banks Addis Ababa

Dear Sirs/Madam;

Subject: NBE Circular No. BSD/04/2011

Sub-article 11(1) of Proc. No. 592/2008 limits shareholding by a person, other than the Federal Government of Ethiopia, to 5 percent of a bank’s total shares; and the subsequent Directive No. SBB/47/2010 allows 36 months to reduce any holding above the limit to 5 percent or less, in line with sub-article 11(6) of the Proclamation.

Accordingly, any move to acquire: i. shares in excess of the limit by any shareholder who currently has less than or equal to 5 percent stake in any bank, and ii. additional shares by a shareholder who has already exceeded the limit;

contrary to the intent of the Proclamation as well as the Directive, is unacceptable as well as illegal entailing penalty as per sub-article 58(7) of the Proclamation.

Yours sincerely,

Solomon Desta Director, Bank Supervision Directorate

CC

• H.E. The Governor
• The Vice Governor, Financial Institutions Supervision
• Insurance Supervision Directorate
• Legal Service Directorate National Bank of Ethiopia

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