Licensing and Supervision of the Business of Micro-Financing Institutions Directive No. MFI/07/96: Branches

የ ኢ ት ዮ ጵ ያ ብ ሔ ራ ዊ ባ ን ክ NATIONAL BANK OF ETHIOPIA ADDIS ABABA

TELEGRAPHIC ADDRESS NATIONBANK TELEX 21020 CODES-USED PETERSON 3rd & 4th ED. BENTLEY'S 2nd PHRASE A. B. C. 6th EDITION

PLEASE ADDRESS ANY REPLY TO P. O. BOX 5550 ADDIS ABABA

LICENSING AND SUPERVISION OF THE BUSINESS OF MICRO-FINANCING INSTITUTIONS Directive No. MFI/07/96 BRANCHES

1. 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 14 of the Licensing and Supervision of the Business of Micro-Financing Institutions Proclamation No. 40/1996.

2. Opening of Branch Offices 2.1 Every licensed institution may open new branches or subsidiaries or offices without prior approval of the National Bank of Ethiopia. 2.2 Every licensed institution which has opened new branch office shall in writing inform the National Bank of Ethiopia the full address, date of commencement of operation, and an overview of the economic conditions of the area where the new branch is situated not later than fifteen days after the commencement of operation.

3. Closure of Branch Offices 3.1 Closure of branch office of a licensed institution may only be conducted after obtaining approval from the National Bank of Ethiopia. 3.2 An application for closure of a branch office shall be submitted by the board of directors of the concerned institution at least three months prior to conducting the intended closure of the branch office.

These directives shall enter into force as of 21st day of October 1996.

Dubale Jale Governor National Bank of Ethiopia