National Bank of Ethiopia - Risk Management Guidelines for Micro Finance Institutions (MFIs)


The National Bank of Ethiopia (NBE) issues these guidelines with the purpose to provide a risk management framework to all licensed micro finance institutions (MFIs) operating in Ethiopia. This framework sets out the minimum risk identification, measurement, monitoring and control system that shall be put in place by micro finance institutions (MFIs).

The guidelines are in line with internationally accepted risk management principles and best practices as they heavily draw on micro finance institutions (MFIs) risk management. All institutions are therefore required to observe these guidelines in the course of designing their risk management system and conducting their business.

The guidelines cover the following topics:

1. Objectives
2. Risk Management Programs
3. Risk Management Process
4. Basic Elements of Risk Management Framework
5. Strategic Risk Management Guideline
6. Credit Risk Management Guideline
7. Liquidity Risk Management Guideline
8. Interest Rate Risk Management Guideline
9. Operational Risk Management Guideline
10. Mapping of Inherent Risk onto Functional Risk Matrix

Document Details

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Wednesday, September 1, 2010
Document Authors: 
National Bank of Ethiopia
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