SBB/57/14 Liquidity Requirement (5th Replacement)

The National Bank of Ethiopia has issued directives (SBB/57/2014) to commercial banks, requiring them to maintain a minimum liquidity requirement of 15% of their net current liabilities, and to establish an Asset & Liability Management Committee to manage their assets, liabilities, and off-balance sheet items. The directives also outline specific requirements for liquidity management, reporting, and stress testing, and prohibit banks from granting new loans or credit accommodations if they fail to meet the minimum regulatory liquidity requirement.