Regulatory Alerts2023-04-27
Added · Updated
Risk Management Guidelines for Microfinance Institutions
The National Bank of Ethiopia requires all licensed microfinance institutions operating in Ethiopia to implement a comprehensive risk management framework tailored to their specific size, complexity, and business activities. This framework must address strategic, credit, liquidity, interest rate, and operational risks through active board oversight, defined policies and limits, adequate measurement systems, and robust internal controls. Institutions are mandated to submit copies of their risk management systems and committee mandates to the regulator, with updates required within three months of the effective date.
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