Regulatory Alerts2023-04-25
Added · Updated
Directive No. MFI/2/1996 Licensing and Supervision of Micro-Financing Institutions Contribution in Kind
The National Bank of Ethiopia permits items such as buildings, essential vehicles, and built-in vaults to be considered capital contributions for micro-financing institutions, provided they are valued by professional and certified valuers acceptable to the bank. These contributions in kind cannot be used to fulfill minimum required capital obligations and must not exceed 10% of paid-up capital in excess of that minimum requirement. The directives entered into force on October 21, 1996.