Regulatory Alerts2014-01-25
Added · Updated
Liquidity Requirement (5th Replacement) Directives No. SBB/57/2014
The National Bank of Ethiopia requires all commercial banks operating in Ethiopia, excluding the Development Bank of Ethiopia, to maintain liquid assets equal to at least 15% of their net current liabilities. Banks must establish an Asset & Liability Management Committee and develop liquidity management policies covering stress tests, cash flow projections, and contingency planning. Non-compliant banks are prohibited from granting new loans or credit accommodations without prior written approval from the National Bank. These directives replace Directives No. SBB/45/2012 and entered into force on October 1, 2014.