Directive No. SBB/9/95 COMPUTATION OF RISK WEIGHTED ASSET
1. Issuing Authority
These directives are issued by the National Bank of Ethiopia pursuant to the
authority vested in it by Article 41 of the Monetary and Banking Proclamation
No. 83/1994 and by article 36 of the Licensing and Supervision of Banking
Business Proclamation No. 84/1994.
2.1 For the purpose of these Directives, the capital of a bank consists of issued
and fully paid in shares, legal reserves and other reserves to be approved by
the National Bank of Ethiopia and
2.2 The minimum capital requirement shall be applied to a bank on a
consolidated basis, including subsidiaries and affiliates engaged in banking
and financial activities.
3. Manner of computation
Risk weighted assets and percentage weight attached to each asset shall be
calculated in the manner as shown in the tables attached herewith which shall be a part hereof.
These Directives shall inter into force as of 21st day of August 1995.