Regulatory Alerts2023-04-25
Added · Updated
Licensing and Authorization of Interest Free Microfinancing Business Directive No. MFI/32/2021
The National Bank of Ethiopia establishes licensing and authorization requirements for interest free microfinancing business, defining interest free microfinance institutions and windows. Microfinance institutions must obtain written authorization to operate an interest free microfinancing window by submitting applications detailing resource mobilization, risk management, and financial strength. Institutions are prohibited from altering the maximum share of the interest free window in their consolidated balance sheet without prior approval, with non-compliance potentially resulting in closure. The directive requires separate accounting for these windows and quarterly reporting, entering into force on August 26, 2021.
Topics
licensing
islamic-finance
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