Regulatory Alerts2019-01-15
Added · Updated
Directive to License and Authorize Interest Free Banking Business No. SBB/72/2019
The National Bank of Ethiopia repeals Directive No. SBB/51/2011 and replaces it with new licensing and authorization rules for interest free banking business. Banks must obtain written authorization to operate an interest free banking window by submitting detailed applications covering resource mobilization, risk management, and financial strength. The directive prohibits altering the maximum share of the interest free banking window in the consolidated balance sheet without prior approval and mandates separate accounting records and monthly reporting. These requirements apply to all banks in Ethiopia engaged in interest free banking business and the directive entered into force on June 18, 2019.
Topics
islamic-finance
licensing
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