RegAlert2023-04-25
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.
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Directive No. MFI/2/1996
LICENSING AND SUPERVISION OF
THE BUSINESS OF MICRO-FINANCING INSTITUTIONS CONTRIBUTION IN KIND
- Issuing Authority
These directives are issued by the National Bank of Ethiopia pursuant to the authority vested in it by Article 41 of the Monetary and Banking Proclamation No. 83/1994 and by Article 5(1) of the Licensing and Supervision of the Business of Micro-financing Institutions Proclamation No. 40/1996. - Contribution in kind
Items like building, essential vehicles, built in vault and others that are acceptable to the National Bank of Ethiopia may be considered as capital contribution; Contributions in kind should be valued by professional and certified valures acceptable to the National Bank of Ethiopia; Capital contributions in kind shall not be considered for the purpose of fulfilling minimum required capital and shall not exceed 10% (ten percent) of paid up capital in excess of the minimum required capital. These directives shall enter into force as of 21st day of October 1996.
Dubale Jale
Governor
National Bank of Ethiopia
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Lineage: In force
Source: National Bank of Ethiopia — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works