Short Title This Proclamation is formally cited as the Banking Business Proclamation No. 1360/2025,.
Issuing Organ The proclamation was issued by the House of Peoples’ Representatives of the Federal Democratic Republic of Ethiopia. It was signed into law by Taye Atske Selassie, the President of the Federal Democratic Republic of Ethiopia.
Effective Date The law entered into force on March 12, 2025, which corresponds to the date of its publication in the Federal Negarit Gazette,.
Primary Regulatory Authority The National Bank of Ethiopia is the central authority responsible for the licensing and supervision of banking businesses,,. It is also designated as the resolution authority with broad powers to manage banks that are no longer viable,,.
Scope and Objectives The primary objective of the proclamation is to ensure the safety, soundness, and stability of the banking sector by creating a comprehensive legal framework. Key features include:
- Opening the banking sector to foreign investment through a regulated framework to improve competitiveness and efficiency.
- Defining various modes of participation for foreign nationals, including foreign bank subsidiaries, branches, and representative offices,,.
- Establishing requirements for capital adequacy, legal reserves, and liquidity management,,.
- Providing for the protection of financial service consumers.
Repealed Legislation This proclamation repeals several previous laws, specifically the Banking Business Proclamation No. 592/2008 and the Banking (Amendment) Proclamation No. 1159/2019,.