The National Bank of Ethiopia approves a new directive to increase minimum paid-up capital requirement needed to establish a bank from half a billion Birr to five billion Birr.
Banks that are under-establishement are given seven year to comply with the new rules, while the existing banks are given five years. Currently, more than 10 commercial banks have a paid-up capital of more than two billion Birr. The three least capitalized banks, Addis, Enat and Debub Global Bank have a paid-up capital of almost one billion Birr.
The paid-up capital of five biggest banks, Awash, Dashen, Nib, Wegagen, United, Oromia banks have already surpassed three billion Birr. In Particular, Awash’s paid up capital was 5.8 billion Birr at the end of last year.