Chapter Seven: Controls for Practicing the Activity of Deposit Banks

The Council of the National Bank of Ethiopia issued Resolution No. 56/2003 on December 10, 2004, to amend the controls for the practice of deposit banking activities as follows:

1. Deposit banks are required to maintain a separate account for underwriting activities. This account must be used exclusively for underwriting transactions and must not be mixed with other bank assets.

2. In addition to the requirements set forth in Article 56 of the National Bank of Ethiopia Proclamation No. 56/2003, deposit banks must maintain a minimum capital adequacy ratio of 8% as of December 31, 2003. This ratio is calculated based on the total risk-weighted assets of the bank.

3. Deposit banks must comply with the liquidity requirements set by the National Bank of Ethiopia. These requirements are designed to ensure that banks have sufficient liquid assets to meet their short-term obligations.

1. Resolution No. 56/2003 of the Council of the National Bank of Ethiopia issued on December 10, 2004.