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Central Bank Increases Minimum Paid-Up Capital to 5b Br

April 15 , 2021

Commercial banks in business have four years to increase their paid-up capital to five billion Birr. Banks under formation that have already raised an equity of over 500 million Br from the public are required to comply in seven years.

A directive issued by the National Bank of Ethiopia (NBE) on April 12, 2021, has more than doubled the minimum capital threshold, revising the existing directive issued in 2008. It is the second amendment after the minimum capital requirement was increased two years ago to two billion Birr.

Whether in business or under formation, all banks are required to submit their action plans for capital increase to the central bank, the directive says. The cut date for the minimum capital requirement is set for June 30, 2026.

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