Regulatory Alerts2023-04-25
Added · Updated
Minimum Paid-up Capital and Capital Adequacy Requirement of Microfinance Institutions Directive No. MFI/36/2023 (3rd Replacement)
The National Bank of Ethiopia sets the minimum initial paid-up capital for new microfinance institutions at Birr 75 million, fully paid in cash. Existing microfinance institutions with paid-up capital below this threshold must raise their capital to Birr 75 million by the end of January 2028 and submit an action plan within three months of the directive's effective date. All microfinance institutions are required to maintain a minimum capital adequacy ratio of 12% and submit quarterly capital position reports to the regulator within four weeks after each quarter ends. The directive repeals Minimum Capital Requirement Directives No. MFI/27/2015 and becomes effective on January 16, 2023.