Prudent lending decisions made on the basis of objective, accurate, complete and timely information on the credit worthiness of borrowers is one of the principal factors in ensuring the financial soundness of banks. The National Bank of Ethiopia (NBE) issues Directives No. CRB-01-2012 with the purpose to provide guidelines to banks to ensure adequate and timely information that contributes to enable a satisfactory assessment of the credit worthiness of a borrower in making prudent lending decisions.
The directives cover the following topics:
1. Registration to Participate in Credit Reference System
2. Duties and Responsibilities of the Credit Reference Bureau
3. Duties and Responsibilities of Banks
4. Obligation to Use Credit Information to Make Credit Decision
5. Complaint Handling
6. Penalty and Suspension