Regulatory Alerts2022-03-15
Added · Updated
Reserve Requirement – 8th Replacement Directive No. SBB/84/2022
Banks operating in Ethiopia must maintain a minimum 5% reserve ratio at all times and an average of 7% per calendar month on Birr and foreign currency deposit liabilities. The directive requires banks to open separate Reserve and Payment and Settlement accounts with the National Bank of Ethiopia, prohibiting withdrawals from the reserve account without prior approval. Weekly and monthly reports detailing reserve balances and ratios must be submitted to the Bank Supervision Directorate, with penalties assessed on deficiencies based on the bank's maximum lending interest rate. This directive repeals Directive No. SBB/80/2021 and entered into force on June 9, 2022.
Topics
monetary
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