NBE/INT/13/2026 Interest Rates (As Amended)

INTEREST RATES (AS AMENDED)
DIRECTIVE NO.NBE/INT/13/2026
Whereas, the National Bank of Ethiopia shall have the powers and duties to regulate and determine the supply and availability of money and credit as well as the applicable interest rates and other charges for the purpose of maintaining price and financial stability that is also conducive to the balanced growth of the Ethiopian economy. Whereas, it has become necessary to amend the interest rate Directive to enable interest rate free determined by market forces. Now, Therefore, in accordance with the provision of the National Bank of Ethiopia Proclamation No. 1359/2025 article 6(5) and article 54(5), the National Bank of Ethiopia has issued this directive.

1. Short Title
   This Directive may be cited as “Interest Rates (As Amended) Directive No. NBE/ INT/13/2026”.
2. Scope of the Directive
   This directive shall apply to all banks licensed by the National Bank of Ethiopia and operating in Ethiopia.
3. Deposit Interest Rates
   3.1 Demand deposit interest rates shall be freely determined by each bank.
   3.2 Saving interest rate shall be freely determined by each bank.
   3.3 Time deposit interest rate shall be freely determined by each bank.
   3.4 The Board of Directors of each bank shall set in writing demand, saving, and
   time deposit rates as provided under sub-article 3.1, 3.2, and 3.3.
   3.5 The deposit rates set by the Board of Directors of each bank under sub-article
   3.4 of this directive shall be non-discriminatory among the same category of
   depositors and shall be based upon explicit and clear criteria to be set in writing.
   3.6 The deposit interest rate set by the Board of Directors of any bank under sub￾article 3.4 and the criteria upon which they are based, as well as any

subsequent changes and the criteria upon which the changes are based shall be submitted to the National Bank of Ethiopia within five working days.
3.7 Notwithstanding sub-article 3.6 of this article, banks shall calculate the
monthly actual weighted average deposit rates under sub-article 3.1, 3.2, and
3.3 shall submit to the National Bank of Ethiopia within seven working days
after the end of each calendar month as per the Annex 1, which shall be part of this Directive.
3.8 Deposit interest rates stated under sub-article 3.3 or set by the Board of
Directors of any bank under sub-article 3.3 of this directive shall not be applicable to time deposits held by banks prior to the effective date of these directives.
4. Lending Interest Rates
4.1 Lending rate on Loans and Advances shall be freely determined by each bank.
4.2 Lending rate on loans and standing facilities granted by the National Bank of
Ethiopia to Commercial Banks and Other Financial Institutions shall be determined by the National Bank of Ethiopia from time to time.
4.3 Inter-Bank lending rates shall be determined by negotiation between the
trading banks.
4.4 Notwithstanding with sub-article 4.3, a bank is not allowed to engage in
prohibited activities that could compromise the integrity of efficiency of the interbank money market that are listed under the interbank money market code of conduct.
4.5 The Board of Directors of each bank shall set in writing lending interest rate as
provided under sub-article 4.1 of this Directive.
4.6 The lending interest rates set by the Board of Directors of each bank under
sub-article 4.5 of this Directive shall be based upon explicit criteria to be set in writing.
4.7 The lending interest rates set by the Board of Directors of any bank under sub￾article 4.5 and the criteria upon which they are based, as well as any
subsequent changes and the criteria upon which the changes are based shall be submitted to the National Bank of Ethiopia within five working days.
4.8 Notwithstanding sub-article 4.7 of this article, banks shall calculate the actual
monthly weighted average lending rate on loans and advances under sub￾article 4.1, with possible disaggregation by sectors and shall be submitted to

the National Bank of Ethiopia within seven working days after the end of each calendar month as per Annex 2, which shall be part of this Directive.
4.9 Unless the loan contract provides to the contrary, lending interest rates
provided by sub-article 4.1 shall not be applicable to loans and advances granted prior to the effective date of these directives.
5. Repeal
All interest rate Directives issued by the National Bank of Ethiopia are hereby repealed and replaced by these directives.
6. Effective Date
These directives shall be effective as of the 9th day of January 2026.

Annex 1
Table 1: Monthly Weighted Average Lending Interest Rates (Conventional Banks)
Name of Bank: ___________________________________ Reporting Month: ________________________________ Sector Loan Category Outstanding Loan & Advance (in Mn Birr) No. of Loan Accounts by Loan Category Lending Interest Rates (% per annum) Minimum Rate by loan category Maximum Rate by loan category Weighted Average Rate by loan category Weighted Average Rate by Sector Sector 1 Over- draft Up to 12 months 1-5 years Over 5 years Sector 2 Over- draft Up to 12 months 1-5 years Over 5 years … … … … … … Sector n … Note:

• The detailed methodology for weighted average calculation is available in the circulated Weighted Average Compilation Guideline.
• The details of sector names are available in the circulated Weighted Average Compilation Guideline.

Annex 1 (Cont.…)
Table 2: Monthly Weighted Average Lending Profit Rates (Interest-Free Banks)
Name of Bank: ___________________________________ Reporting Month: ________________________________ Sector Loan Category Outstanding Loan & Advance (in Mn Birr) No. of Loan Accounts by Loan Category Lending Profit Rates (% per annum) Minimum Rate by loan category Maximum Rate by loan category Weighted Average Rate by loan category Weighted Average Rate by Sector Sector 1 Over- draft Up to 12 months 1-5 years Over 5 years Sector 2 Over- draft Up to 12 months 1-5 years Over 5 years … … … … … … Sector n … Note:

• The detailed methodology for weighted average calculation is available in the circulated Weighted Average Compilation Guideline.
• The details of sector names are available in the circulated Weighted Average Compilation Guideline.

Annex 2
Table 3: Monthly Weighted Average Deposit Interest Rates (Conventional Banks)
Name of Bank: ___________________________________ Reporting Month: ________________________________ Deposit Type Deposit Category Total Deposit Amount (in Mn Birr) No. of Deposit Accounts by Category Deposit Interest Rates (% per annum) Minimum Rate by deposit category Maximum Rate by deposit category Weighted Average Rate by deposit category Weighted Average Rate by Deposit Type Saving Deposit 1.1 1.2 1.3 … 1.6 Demand Deposit 1.1 1.2 1.3 … 1.6 Time Deposit 1.1 1.2 1.3 … 1.6 Note:

• The detailed methodology for weighted average calculation is available in the circulated Weighted Average Compilation Guideline.
• The details of deposit category names are available in the circulated Weighted Average Compilation Guideline.

Annex 2 (Cont.…)
Table 4: Monthly Weighted Average Deposit Profit Rates (Interest-Free Banks)
Name of Bank: ___________________________________ Reporting Month: ________________________________ Deposit Type Deposit Category Total Deposit Amount by Category (in Mn Birr) No. of Deposit Accounts by Category Deposit Profit Rates (% per annum) Minimum Rate by deposit category Maximum Rate by deposit category Weighted Average Rate by deposit category Weighted Average Rate by Deposit Type Saving Deposit 1.1 1.2 1.3 … 1.6 Demand Deposit 1.1 1.2 1.3 … 1.6 Time Deposit 1.1 1.2 1.3 … 1.6 Note:

• The detailed methodology for weighted average calculation is available in the circulated Weighted Average Compilation Guideline.
• The details of deposit category names are available in the circulated Weighted Average Compilation Guideline.