Capital Goods Leasing Business (Amendment) Proclamation No. 807/2013

PROCLAMATION No. 807/2013

PROCLAMATION TO AMEND THE CAPITAL GOODS LEASING BUSINESS PROCLAMATION

WHEREAS, it has became necessary to amend the Capital Goods Leasing Business Proclamation No.103/ 1998;

NOW, THEREFORE, in accordance with Article55 (1) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows:

1. Short Title

This Proclamation may be cited as the “Capital Goods Leasing Business (Amendment) Proclamation No. 807/2013”.

2. Amendment

The Capital Goods Leasing Business Proclamation No. 103/ 1998 is hereby amended as follows:

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Following the issuance of the new amendment the National Bank of Ethiopia has issued two directives for its implementation.

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  • LICENSING AND SUPERVISION OF THE BUSINESS OF CAPITAL GOODS FINANCE COMPANIES

Requirements for Licensing of Capital Goods Finance Business Directives No. CGFB /02/ 2013    DOWNLOAD

  • LICENSING AND SUPERVISION OF THE BUSINESS OF CAPITAL GOODS FINANCE COMPANIES

Minimum Paid Up Capital Requirement Directives No.CGFB /01/ 2013      DOWNLOAD

Regulation of Mobile and Agent Banking Services National Bank of Ethiopia Directives No. FIS /0112012

LICENSING AND SUPERVION OF THE BUSINESS OF FINANCIAL INSTITUIONS DOWNLOAD (.pdf)

Regulation of Mobile and Agent Banking Services

Directives No. FIS /0112012

Whereas, use of technology and innovative financial service delivery channels such as mobile devices and agents have significant contribution in deepening financial service accessibility to the wider section of the population at an affordable price;

Whereas, it has been found essential to encourage and enhance savings mobilization through the use of alternative and innovative financial services delivery channels;

Whereas, there is a need to set the minimum standards for risk management and customer protection on the delivery of mobile and agent banking services;

Whereas, the National Bank of Ethiopia is responsible for ensuring , that financial institutions are delivering mobile and agent banking services without compromising the safety and soundness of the financial system of the country;

Now, therefore, in line with the powers vested in it by article 10 (5) of National Payment System Proclamation No. 718/2011 and article 59 (2) of Banking Business

Proclamation no. 592/2008, the National Bank of Ethiopia has issued these directives. Continue reading Regulation of Mobile and Agent Banking Services National Bank of Ethiopia Directives No. FIS /0112012

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Regulation no. 181-2010 Leather Industry Development Institute

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Regulation no. 183-2010 Metal and Engineering Corporation Establishment

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Regulation no. 186-2010 Defence Construction Materials Manufacturing Enterprise Establishment

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Limits on Board Remuneration and Number of Employees Who Sit on a Bank Board Directives No. SBB/49/2011

Brief Note

This directives limits the total remuneration to be payed to members of board of directors of a bank to a maximum of 74, 000.00 Birr. (Fifty two thousand Birr)According to article 4.1 of the directive,  Annual board compensation to a director shall not exceed birr 50,000 (fifty thousand birr). In addition o this lump sum payment, the monthly allowance to be paid to a single board member could not exceed birr 2,000 (two thousand birr). The Directive strictly prohibits payment of any financial or otherwise remuneration or benefits other than the stated yearly compensation and monthly allowance.

The directives also prohibits employee of a bank, be it permanent or contractual from becoming members of board of directors.

LICENSING AND SUPERVISION

OF BANKING BUSINESS

Limits on Board Remuneration and Number of Employees Who Sit on a Bank Board Directives No. SBB/49/2011

 

WHEREAS, a sound corporate governance is vital for the health of individual banks and the banking sector as a whole;

WHEREAS, excessive remunerations recently being paid by banks to directors have become a threat to the health of the banking system;

WHEREAS, there is a need to separate board and executive functions, so as to ensure proper checks and balances, in banks;

NOW, THEREFORE, in accordance with paragraphs “e” and “f” of sub-article 4 of article 14 of Banking Business Proclamation No 592/2008, the National Bank of Ethiopia hereby issues these directives.

1. Short Title

These Directives shall be cited as “Limits on Board Remuneration and Number of Employees Who Sit on Bank Board Directives No. SBB/49/2011″.

2. Definitions

For the purpose of these directives, unless the context provides otherwise:

2.1 “bank” means a company licensed by the National Bank of Ethiopia to undertake banking business or a bank owned by the Government;

2.2 “Board allowance” refers to an amount of money that is paid in kind or in cash from any account of the bank to directors to cover incidental costs related to their board membership;

2.3 “Board compensation” refers to any money other than board allowance that is paid, in cash or otherwise, to a director from the bank’s net profit or from any other sources;

2.4 “Director” means any member of the board of directors of a bank, by whatever title he may be referred to;

2.5 “Employee” means a chief executive officer, a senior executive officer or any other person who is appointed or hired by a bank to carry out its day-to-day operational activities;

2.6 “Remuneration” includes board compensation and allowance paid to each director;

3. Scope of the Directives

These directives shall apply to all banks operating in Ethiopia.

4. Remuneration of Directors

4.1 Annual board compensation to a director shall not exceed birr 50,000 (fifty thousand birr).

4.2 Monthly allowance paid to a director shall not exceed birr 2,000 (two thousand birr).

4.3 No bank shall pay any financial or otherwise remuneration or benefits other than those stated under sub-articles “4.1” and “4.2” of this article in whatsoever form to its directors any time.

5. Number of Employees Who Sit on Bank Board

No employee of a bank, be it permanent or contractual, shall sit on the board of any bank.

6. Effective Date

These Directives shall enter into force as of 15th day of January 2011.