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Banking Laws

Banking business in Ethiopia is governed by two Proclamations. The first, Monetary and Banking Proclamation No. 83/1994 defines the powers and responsibilities of the National Bank of Ethiopia, which is the Central Bank of the country. The second, a proclamation to provide for the Licensing and Supervision of Banking Business No. 84/1994, which sets out the conditions under which commercial banks can be licensed and the supervisory requirements they should observe in the course of their operation. Specifically, the Proclamation stipulates that in order to undertake a banking business in Ethiopia, a person should meet the following requirements:
 

a)  

It is a company;

b)  

It has share capital fully subscribed;

c)  

Total per value of the shares has been paid up and deposited in a bank in the name and to the account of the company; (The revised minimum required capital to start banking business is 75 million Birr);

d)  

It is confirmed by the National Bank of Ethiopia that the directors and officers of the company have the qualifications prescribed by it;

e)  

The company has been issued with a license by the National Bank of Ethiopia;

f)  

It meets other requirements of the Proclamation or Directives issued by the National Bank of Ethiopia.
At present no foreign national is permitted to undertake banking business in Ethiopia.

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