Licensing, Credit Information and Examination Fees on Banks Directive No.SBB/85/2022

የኢትዮጵያ ብሔራዊ ባንክ NATIONAL BANK OF ETHIOPIA አዲስ አበባ / ADDIS ABABA

LICENSING AND SUPERVISION OF BANKING BUSINESS Licensing, Credit Information and Examination Fees on Banks Directive No.SBB/85/2022

Whereas, it is essential that the National Bank has to improve its service quality with a view to satisfy its customers;

Whereas, it is found necessary to revise existing fees as well as introduce some new ones on National Bank services provided to banks;

Now, therefore, in accordance with Articles 4(1b), 5(2), 51, 64 and 66(2) of the Banking Business Proclamation No. 592/2008 as amended by Banking Business (Amended) Proclamation No.1159/2019, the National Bank of Ethiopia has issued this Directive.

1. Short Title

This Directive may be cited as “Licensing, Credit Information and Examination Fees on Banks Directive No.SBB/85/2022”.

2. Definition

For the purpose of this Directive, unless the context provides otherwise:

2.1. “bank” means a company licensed by the National Bank to undertake banking business or a bank owned by the government;

2.2. “big, medium, or small bank” means a category based on asset size to which a bank belongs as assigned by the National Bank from time to time;

2.3. “National Bank” means the National Bank of Ethiopia; and

2.4. “examination fee” means a financial charge on National Bank services provided to banks including on-site examination and off-site surveillance.

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3. Scope of the Directive

The provisions of this Directive shall be applicable to all banks operating in Ethiopia.

4. Fees

4.1) A bank applying to obtain new banking business license shall pay: i) investigation fee of Birr 100,000 (One Hundred Thousand Birr), and ii) licensing fee of Birr 300,000 (Three Hundred Thousand Birr).

4.2) A bank applying for renewal of its business license shall pay annual renewal fee of Birr 200,000 (Two Hundred Thousand Birr);

4.3) A bank applying for replacement of its business license, due to any reason, shall pay fee of Birr 50,000 (Birr Fifty Thousand Birr), per application;

4.4) A bank applying to obtain or replace, due to any reason, a branch or a sub-branch license shall pay fee of Birr 5,000 (Five Thousand Birr) per branch or sub-branch;

4.5) A bank shall annually pay examination fee of: i) Birr 1,000,000 (One Million Birr) if it is a big bank, ii) Birr 750,000 (Seven Hundred Fifty Thousand Birr) if it is a medium bank, and iii) Birr 500,000 (Five Hundred Thousand Birr) if it is a small bank.

4.6) A bank applying to obtain credit information shall pay: i) no fee for aggregate requested loans and advances less or equal to Birr 100,000 (One Hundred Thousand Birr), ii) Birr 1,000 (One Hundred Thousand Birr) per credit report, for aggregate requested loans and advances more than Birr 100,000 (One Hundred Thousand Birr), and less or equal to Birr 1,000,000(One Million Birr), and iii) Birr 2,000 (Two Thousand Birr) per credit report, for aggregate requested loans and advances more than Birr 1,000,000 (One Million Birr).

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5. Repeal

The following provisions of National Bank directives are repealed and replaced by this Directive:

5.1) Article 9 of Requirements for Licensing and Renewal of Banking Business Directive No.SBB/56/2013,

5.2) Sub-article 4.2 of Third Amendment of Branch Opening Directive No.SBB/66/2018, and

5.3) Sub-article 10.1 of Directives for the Establishment and Operation of Credit Reference Bureau Directive No.CRB/02/2019.

6. Effective Date

This Directive shall enter into effect as of 3rd day of October 2022.

Yinager Dessie (PhD) Governor

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