Regulatory Alerts1995-03-25
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SBB/9/95 Computation of Risk Weighted Asset
The National Bank of Ethiopia defines bank capital as issued and fully paid shares, legal reserves, and other reserves approved by the regulator. Minimum capital requirements are applied on a consolidated basis, including subsidiaries and affiliates engaged in banking and financial activities. Risk weighted assets and their associated percentage weights are calculated according to attached tables. These directives entered into force on August 21, 1995.
LICENSING AND SUPERVISION OF BANKING BUSINESS Directive No. SBB/9/95 COMPUTATION OF RISK WEIGHTED ASSET
- Issuing Authority These directives are issued by the National Bank of Ethiopia pursuant to the authority vested in it by Article 41 of the Monetary and Banking Proclamation No. 83/1994 and by article 36 of the Licensing and Supervision of Banking Business Proclamation No. 84/1994.
- Definition 2.1 For the purpose of these Directives, the capital of a bank consists of issued and fully paid in shares, legal reserves and other reserves to be approved by the National Bank of Ethiopia and 2.2 The minimum capital requirement shall be applied to a bank on a consolidated basis, including subsidiaries and affiliates engaged in banking and financial activities.
- Manner of computation Risk weighted assets and percentage weight attached to each asset shall be calculated in the manner as shown in the tables attached herewith which shall be a part hereof. These Directives shall inter into force as of 21st day of August 1995.
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