Regulatory Alerts2020-02-26
Added · Updated
Operationalization of Movable Collateral Registry Directive No. MCR/01/2020
The National Bank of Ethiopia establishes the Movable Collateral Registry Office within the Bank and defines operational procedures for the electronic registry, including user account requirements, communication formats, and fee structures. Banks, Microfinance Institutions, and Capital Goods Finance Companies must assign senior administrators and security officers to manage registry access and ensure data integrity. The directive mandates that banks allocate at least five percent of their annual credit disbursements to individuals, agricultural sector entities, and MSMEs using movable property as collateral, with penalties of Birr 10,000 for non-compliance. The directive entered into force on February 26, 2020, with a ninety-day fee exemption period for registry users.