Capital Adequacy Ratio Requirement Directives N0.CGFB/04/2016

The National Bank of Ethiopia has issued directives requiring capital goods finance companies to maintain a minimum capital adequacy ratio of 10%, computed as a ratio of total capital to total risk-weighted assets. These directives, effective as of April 1, 2016, aim to strengthen the safety and soundness of capital goods finance companies by creating a consistent capital adequacy measurement.