The National Bank of Ethiopia (NBE) is set to undergo significant institutional reorganization as the country moves toward a more liberalized financial system. Two key proclamations—the NBE establishment proclamation and the banking business proclamation—are expected to be finalized in the coming weeks, marking a turning point for Ethiopia’s banking sector. Under the new NBE proclamation, a seven-member monetary policy committee will be formed to recommend monetary policies, including setting the National Bank Rate. Additionally, a Financial Stability Committee will be established to assess risks to the financial system and propose macro and micro prudential policies. The banking business proclamation aims to open Ethiopia’s financial sector to international banks while protecting local institutions.

Source: Ethiopian News November 20, 2024 03:35 UTC