NBE Drafts Rule to Tighten Bank Ownership Transfers

Oct 18 , 2025

The National Bank of Ethiopia (NBE) has issued a draft directive to tighten oversight of the banking sector by restricting large ownership transfers and enhancing regulatory scrutiny. Titled the “Transfer of Significant Ownership in a Bank Directive,” the proposal seeks to align to the supervision framework with international standards while ensuring the suitability and financial soundness of new shareholders. The directive requires prior NBE approval for any transfer involving a stake of two percent or more. Prospective shareholders must disclose their financial standing, governance structure, and sources of funds. For foreign investors, a no-objection letter from their home country’s regulator is mandatory. Officials say the measure forms part of the broader macroeconomic reform agenda that plans to open the country's banking sector to foreign participation while safeguarding national financial stability. The draft is currently open for public consultation before final adoption.