Federal Democratic Republic of Ethiopia - Proclamation No. 592-2008 - Banking Business


Banks play an important role in economic development through mobilization of funds from within and outside the country and channeling such funds to various sectors of the economy. The business of banking has a number of attributes which, if not managed properly, has the potential to generate financial system and macroeconomic instability; the cost of financial system and macroeconomic instability to the general public and the government is significant. The Federal Democratic Republic of Ethiopia's Proclamation No. 592/2008 ensures safety, soundness and stability of the banking system by having a comprehensive law for the licensing and supervision of the banking business.

The proclamation is divided into nine parts, and covers the following topics:

Part I. General Definitions
Part II. Licensing Banking Business
Part III. Shares and Shareholders' Meetings
Part IV. Directors and Employees of a Bank
Part V. Financial Obligations and Limitations (Capital, Reserves, Liquidity, etc.)
Part VI. Financial Records and External Audit Inspection
Part VII. Disclosure of Information and Inspection of Banks
Part VIII. Revocation of License, Receivership and Liquidation
Part IX. Miscellaneous (Penalty, Power to Issue Regulation and Directive, etc.)

Document Details

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Monday, August 25, 2008
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Federal Democratic Republic of Ethiopia
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