KEY POINTS
- Banking business is regulated by the Proclamation to Provide for Banking Business (No. 1360).
- The National Bank of Ethiopia’s powers are set out in the National Bank of Ethiopia Proclamation (No. 1359).
- The Capital Market Proclamation No. 1248/2021 establishes the Capital Market Authority and covers securities exchanges, licensing, public offers and a capital market tribunal.
Banks and the National Bank of Ethiopia
The Proclamation to Provide for Banking Business (No. 1360) regulates the licensing and conduct of banking business, and the National Bank of Ethiopia Proclamation (No. 1359) sets out the central bank’s mandate and powers. Much of the day-to-day regulation is in directives issued by the National Bank, so research usually needs both the proclamation and the relevant directive.
Capital markets
The Capital Market Proclamation No. 1248/2021 establishes the Capital Market Authority. Its parts cover self-regulatory organizations, securities exchanges, securities depository and clearing companies, the licensing of capital market service providers, a capital market tribunal, public offerings and trading of securities, disclosure of interests, acquisitions and the protection of minority interests, and collective investment schemes.
Insurance
Insurance business is governed by the Insurance Business Proclamation No. 746/2012, as amended.
Frequently asked questions
Which law regulates banks in Ethiopia?
The Proclamation to Provide for Banking Business (No. 1360), together with the National Bank of Ethiopia Proclamation (No. 1359) and directives issued by the National Bank of Ethiopia.
Does Ethiopia have a capital market law?
Yes. The Capital Market Proclamation No. 1248/2021 establishes the Capital Market Authority and regulates securities exchanges, capital market service providers and public offerings.
Why do some citations of Ethiopia’s banking proclamations show different years?
The published texts of Proclamations No. 1359 and No. 1360 refer to themselves with more than one year. Cite them by number and check the Federal Negarit Gazeta issue you rely on.
This page is general legal information about Ethiopian law, prepared from the published texts it cites. It is not legal advice and does not confirm whether a provision is still in force or has been amended. Federal laws are published in the Federal Negarit Gazeta in Amharic and English, and the Amharic version prevails where they differ. Consult a qualified Ethiopian lawyer about your situation.