Newly Amended Banking Proclamation No. 1159-2019

December 10, 2019 Eyasu Mekonen 1,918 Comments

According to the preamble of the Proclamation, the amendment is necessitated to allow Foreign Nationals of Ethiopian origin to invest in the banking sector and to include new provisions that contribute to safety, soundness and effectiveness of banks and consumer protection.

The Proclamation adds new sets of activities within the definition of “Banking Business”. These are digital financial service and agent banking. The Proclamation defines Digital Financial Service as a financial service including payments, remittances and insurance accessed and delivered through digital channels. Agent banking was first regulated by the National Bank of Ethiopia Directive No. FIS/01/2012 that regulates Mobile and Agent Banking Services. The Directive defines agent banking as conduct of banking business on behalf of a financial institution through an agent using various service channels as permitted under the Directive. New sub-articles to the definitions article of the Proclamation are added. These provide for the definitions of Guarantee, Digital Financial Service, Foreign Nationals of Ethiopian Origin, Illiquid, Indirectly Owning Shares of a Company and Normal Course of Business.

Notably the Proclamation lifts the prohibitions on Foreign Nationals of Ethiopian Origin from holding shares in Banks. It allows Foreign Nationals of Ethiopian Origin as defined under Proclamation No. 270/2002 to engage directly and indirectly in banking business. Foreign Nationals of Ethiopian Origin are required to pay the value of shares in a Bank only in acceptable foreign currency. Payments relating to dividends, transfer of shares, sale and liquidation of the bank or any other payment due to Foreign Nationals of Ethiopian Origin are paid in Birr. Furthermore, any Foreign National of Ethiopian Origin that directly or indirectly holds shares in Bank is not allowed to repatriate any asset or interest obtained in this manner. The Proclamation authorizes the National Bank of Ethiopia to issue a directive on additional conditions for investment in a Bank by Foreign Nationals of Ethiopian Origin.

The proclamation introduces new grounds for revocation of banking license immediately, which are: a) when a Bank becomes illiquid; it becomes insolvent; or it fails to abide by laws and directives of the National Bank of Ethiopia.

The Proclamation introduces new articles that deal with security measures, advertisement, outsourcing of critical or important functions, suitability of services to disables customer, consumer protection, digital financial services and interest free bank. The National Bank is authorized to determine by directive the minimum conditions for outsourcing of critical or important functions; standards on banks’ minimum security measures; minimum conditions for consumer protection; minimum conditions for providing digital financial services; additional conditions of licensing, supervisions and requirements to establish Interest Free Bank.

With respect to advertisement, the Proclamation authorizes the National Bank to direct a bank in writing to withdraw, amend or refrain from issuing an advertisement that is considers to be false, misleading, deceptive, or offensive in accordance with the Directive to be issued by the National bank.

1,918 People reacted on this

  1. Hey there are using WordPress for your site platform? I’m new to the
    blog world but I’m trying to get started and set up my own. Do you need any html coding expertise to
    make your own blog? Any help would be really appreciated!

  2. What’s up, this weekend is pleasant designed for me, for the reason that this occasion i am reading this great informative post here at my home.

  3. Your style is unique in comparison to other people
    I’ve read stuff from. Many thanks for posting when you have the opportunity, Guess I’ll just book mark this web site.

  4. It is really a nice and useful piece of info. I am glad that you shared
    this helpful information with us. Please stay us informed like this.
    Thank you for sharing.

  5. Do you mind if I quote a few of your posts as long as I provide credit and sources back to your website?
    My website is in the very same area of interest as
    yours and my users would really benefit from a lot of the information you provide
    here. Please let me know if this okay with you. Thank you!

  6. You’re so interesting! I do not think I’ve truly read a single thing like this before. So wonderful to find another person with some original thoughts on this subject matter. Really.. thank you for starting this up. This website is something that is required on the internet, someone with some originality!

  7. Leading Online Pharmacy – Contact us at +1 (917) 259-3352 for unbelievable rates, discount and offers on any medicine. Get it delivered free of cost at your door steps, call us today. Phone : +1 (917) 259-3352

  8. I just want to tell you that I am just newbie to blogging and absolutely liked this web-site. Most likely I’m likely to bookmark your blog post . You certainly have excellent stories. Thanks for revealing your website page.

  9. After study a few of the blog posts on your site now, as well as I genuinely like your means of blogging. I bookmarked it to my bookmark web site listing and also will certainly be inspecting back quickly. Pls take a look at my website too and also let me recognize what you believe.

  10. Leading Digital Marketing agency in India and Kolkata, Leading Web Design company. Providing web designing and Digital marketing services, Digital marketing course, and certification with an internship.

  11. It’s a pity you don’t have a donate button! I’d certainly donate to this fantastic blog! I suppose for now i’ll settle for book-marking and adding your RSS feed to my Google account. I look forward to new updates and will share this site with my Facebook group. Chat soon!

  12. I absolutely love your website.. Very nice colors & theme. Did you make this web site yourself? Please reply back as I’m trying to create my own blog and would like to learn where you got this from or what the theme is named. Many thanks!

  13. After looking at a few of the articles on your website, I honestly like your technique of blogging. I bookmarked it to my bookmark site list and will be checking back soon. Please check out my web site as well and tell me how you feel.

  14. I have to thank you for the efforts you’ve put in writing this website. I’m hoping to see the same high-grade content by you in the future as well. In truth, your creative writing abilities has encouraged me to get my own blog now 😉

  15. After research study a few of the post on your website currently, and I really like your way of blog writing. I bookmarked it to my bookmark site listing as well as will certainly be checking back soon. Pls have a look at my website as well and let me know what you assume.

  16. Nice post. I understand some thing harder on various blogs everyday. Most commonly it is stimulating to learn to read content using their company writers and exercise something from their store. I’d opt to use some while using the content in my blog regardless of whether you don’t mind. Natually I’ll give you a link on your own web blog. Thank you for sharing.

  17. Howdy! I could possibly have sworn I’ve gone to this website before but after reading through a number of the post I
    realized it’s new to me. Nonetheless, I’m definitely glad I found it and I’ll be
    book-marking and checking back often!

    Feel free to surf to my blog post :: JennieMMatot

  18. I blog frequently and I really appreciate your information. This article has truly peaked my interest. I am going to take a note of your site and keep checking for new information about once per week. I opted in for your RSS feed too.

  19. I?m impressed, I should state. Truly rarely do I experience a blog site that?s both informative and enjoyable, and also let me inform you, you have hit the nail on the head. Your suggestion is outstanding; the concern is something that inadequate individuals are speaking wisely about. I am really satisfied that I stumbled across this in my search for something relating to this.

  20. Hey there! I know this is sort of off-topic however I needed
    to ask. Does operating a well-established blog such as
    yours take a large amount of work? I am brand new
    to writing a blog however I do write in my diary daily. I’d
    like to start a blog so I can share my experience
    and views online. Please let me know if you have any kind of
    recommendations or tips for new aspiring bloggers.
    Thankyou!

  21. I discovered your blog site on google as well as inspect a few of your very early posts. Remain to maintain the very good run. I simply extra up your RSS feed to my MSN News Reader. Looking for ahead to finding out more from you later!?

  22. Hi there! This article couldn’t be written much better! Going through this post reminds me of my previous roommate! He constantly kept preaching about this. I’ll forward this post to him. Pretty sure he’s going to have a good read. Thank you for sharing!

  23. Nice blog! Is your theme custom made or did you download it from somewhere?
    A theme like yours with a few simple tweeks would really make my
    blog jump out. Please let me know where you got your theme.
    With thanks

  24. I’m the proprietor of JustCBD Store label (justcbdstore.com) and I’m presently aiming to develop my wholesale side of business. It would be great if anybody at targetdomain give me some advice ! I thought that the most effective way to accomplish this would be to talk to vape shops and cbd stores. I was hoping if anyone could recommend a reputable website where I can buy CBD Shops B2B Mailing List I am presently considering creativebeartech.com, theeliquidboutique.co.uk and wowitloveithaveit.com. Not exactly sure which one would be the best selection and would appreciate any advice on this. Or would it be simpler for me to scrape my own leads? Suggestions?

  25. Hi, I do think this is a great website. I stumbledupon it 😉 I may return once again since i have book marked it. Money and freedom is the greatest way to change, may you be rich and continue to guide other people.

  26. This is the perfect web site for everyone who really wants to understand this topic. You know a whole lot its almost hard to argue with you (not that I really would want to…HaHa). You definitely put a fresh spin on a subject which has been written about for a long time. Great stuff, just excellent!

  27. Greetings! Very helpful advice in this particular article! It’s the little changes that will make the most significant changes. Many thanks for sharing!

  28. This internet site is really a walk-through for every one of the info you wanted concerning this as well as didn?t know that to ask. Look here, and you?ll definitely find it.

  29. This is a really good tip particularly to those fresh to the blogosphere. Brief but very accurate information… Thanks for sharing this one. A must read post!

  30. Everything is very open with a really clear description of the challenges. It was really informative. Your site is very useful. Many thanks for sharing!

  31. Excellent blog you’ve got here.. It’s difficult to find high quality writing like yours these days. I honestly appreciate individuals like you! Take care!!

  32. Wonderful items from you, man. I’ve be aware your stuff previous to and you’re simply too magnificent. I really like what you’ve got here, certainly like what you’re saying and the best way during which you say it. You are making it enjoyable and you still care for to keep it wise. I cant wait to read much more from you. This is actually a terrific website.|

  33. Aw, this was a very good post. Taking the time and actual effort to make a very good article… but what can I say… I put things off a whole lot and don’t manage to get anything done.

  34. This is the right blog for everyone who hopes to find out about this topic. You know a whole lot its almost tough to argue with you (not that I really would want to…HaHa). You certainly put a fresh spin on a topic that’s been discussed for many years. Great stuff, just excellent!

  35. Right here is the perfect webpage for anyone who wants to find out about this topic. You understand so much its almost tough to argue with you (not that I actually will need to…HaHa). You certainly put a new spin on a subject that has been written about for ages. Wonderful stuff, just excellent!

  36. An impressive share! I have just forwarded this onto a co-worker who was conducting a little research on this. And he actually bought me breakfast simply because I found it for him… lol. So let me reword this…. Thank YOU for the meal!! But yeah, thanks for spending time to talk about this subject here on your blog.

  37. You’re so awesome! I do not think I’ve truly read through a single thing like this before. So nice to find somebody with some original thoughts on this issue. Seriously.. many thanks for starting this up. This site is something that is required on the internet, someone with a bit of originality!

  38. You are so interesting! I do not believe I have read a single thing like that before. So nice to find another person with some unique thoughts on this subject. Really.. many thanks for starting this up. This web site is something that’s needed on the web, someone with some originality!

  39. I’m amazed, I must say. Rarely do I come across a blog that’s both educative and entertaining, and without a doubt, you have hit the nail on the head. The problem is an issue that not enough people are speaking intelligently about. Now i’m very happy I came across this in my search for something relating to this.

  40. An outstanding share! I’ve just forwarded this onto a coworker who had been doing a little research on this. And he in fact bought me breakfast because I stumbled upon it for him… lol. So let me reword this…. Thank YOU for the meal!! But yeah, thanks for spending the time to talk about this topic here on your web site.

  41. Oh my goodness! Impressive article dude! Thanks, However I am having problems with your RSS. I don’t understand the reason why I am unable to subscribe to it. Is there anyone else having identical RSS issues? Anybody who knows the solution can you kindly respond? Thanks!!

  42. The very next time I read a blog, Hopefully it doesn’t disappoint me just as much as this particular one. I mean, I know it was my choice to read, nonetheless I really believed you’d have something useful to talk about. All I hear is a bunch of crying about something that you could fix if you weren’t too busy seeking attention.

  43. May I simply say what a relief to find a person that actually knows what they are discussing on the web. You definitely realize how to bring a problem to light and make it important. More and more people must look at this and understand this side of the story. I can’t believe you aren’t more popular because you certainly have the gift.

  44. An interesting discussion is worth comment. I believe that you should publish more on this issue, it may not be a taboo matter but typically folks don’t discuss these subjects. To the next! Kind regards!!

  45. I absolutely love your site.. Great colors & theme. Did you make this amazing site yourself? Please reply back as I’m trying to create my own personal website and would like to find out where you got this from or what the theme is called. Thank you!

  46. I seriously love your website.. Pleasant colors & theme. Did you make this web site yourself? Please reply back as I’m planning to create my own personal blog and want to learn where you got this from or what the theme is named. Thank you!

  47. I’d like to thank you for the efforts you’ve put in penning this blog. I really hope to view the same high-grade content from you in the future as well. In truth, your creative writing abilities has inspired me to get my very own site now 😉

  48. This is the appropriate blog for anybody that intends to find out about this subject. You recognize so much its nearly difficult to argue with you (not that I in fact would want?HaHa). You absolutely placed a new spin on a subject thats been blogged about for several years. Terrific things, just excellent!

  49. I’m amazed, I have to admit. Seldom do I encounter a blog that’s equally educative and entertaining, and let me tell you, you’ve hit the nail on the head. The issue is something which too few men and women are speaking intelligently about. Now i’m very happy that I stumbled across this during my hunt for something regarding this.

  50. An outstanding share! I have just forwarded this onto a colleague who has been doing a little homework on this. And he in fact bought me lunch due to the fact that I stumbled upon it for him… lol. So allow me to reword this…. Thanks for the meal!! But yeah, thanks for spending time to discuss this issue here on your internet site.

  51. After exploring a number of the blog posts on your blog, I seriously appreciate your way of blogging. I book marked it to my bookmark webpage list and will be checking back soon. Take a look at my website too and tell me what you think.

  52. The next time I read a blog, I hope that it doesn’t fail me just as much as this one. I mean, I know it was my choice to read through, but I genuinely believed you’d have something helpful to talk about. All I hear is a bunch of crying about something that you could possibly fix if you weren’t too busy seeking attention.

  53. I’m impressed, I must say. Rarely do I come across a blog that’s both equally educative and interesting, and without a doubt, you have hit the nail on the head. The issue is an issue that too few people are speaking intelligently about. I’m very happy I stumbled across this in my hunt for something concerning this.

  54. Hi, I do think your web site could possibly be having browser compatibility problems. Whenever I look at your website in Safari, it looks fine however when opening in I.E., it has some overlapping issues. I just wanted to give you a quick heads up! Aside from that, great site!

  55. An outstanding share! I have just forwarded this onto a coworker who had been doing a little research on this. And he in fact ordered me breakfast because I found it for him… lol. So let me reword this…. Thanks for the meal!! But yeah, thanks for spending the time to talk about this matter here on your internet site.

  56. An impressive share! I’ve just forwarded this onto a coworker who had been doing a little research on this. And he actually ordered me breakfast due to the fact that I discovered it for him… lol. So let me reword this…. Thank YOU for the meal!! But yeah, thanx for spending the time to discuss this matter here on your web page.

  57. Hello there, I do believe your website could be having web browser compatibility issues. Whenever I take a look at your blog in Safari, it looks fine however when opening in IE, it has some overlapping issues. I just wanted to provide you with a quick heads up! Other than that, fantastic website!

  58. Howdy! This post could not be written much better! Going through this article reminds me of my previous roommate! He always kept talking about this. I am going to forward this article to him. Fairly certain he’ll have a good read. Many thanks for sharing!

  59. I have to thank you for the efforts you have put in penning this site. I’m hoping to view the same high-grade content from you later on as well. In truth, your creative writing abilities has inspired me to get my own blog now 😉

  60. I would like to thank you for the efforts you’ve put in writing this blog. I am hoping to view the same high-grade content by you later on as well. In fact, your creative writing abilities has inspired me to get my very own site now 😉

  61. Having read this I believed it was extremely informative. I appreciate you finding the time and effort to put this article together. I once again find myself spending a lot of time both reading and leaving comments. But so what, it was still worth it!

  62. I would like to thank you for the efforts you’ve put in penning this website. I’m hoping to check out the same high-grade content by you later on as well. In truth, your creative writing abilities has encouraged me to get my own website now 😉

  63. May I simply say what a comfort to uncover somebody that actually knows what they are discussing on the net. You actually realize how to bring an issue to light and make it important. A lot more people really need to read this and understand this side of your story. I can’t believe you’re not more popular given that you definitely have the gift.

  64. Having read this I thought it was really informative. I appreciate you finding the time and energy to put this content together. I once again find myself spending way too much time both reading and commenting. But so what, it was still worthwhile!

  65. Hello there! I could have sworn I’ve been to this web site before but after going through many of the articles I realized it’s new to me. Anyhow, I’m certainly pleased I found it and I’ll be bookmarking it and checking back frequently!

  66. A fascinating discussion is definitely worth comment. I do think that you should publish more on this issue, it may not be a taboo subject but usually people don’t speak about these issues. To the next! Kind regards!!

  67. I blog often and I really appreciate your content. Your article has really peaked my interest. I’m going to book mark your blog and keep checking for new details about once per week. I subscribed to your Feed as well.