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Erudite AfricaCenter of Excellence
← Level 1: Credit Foundations

Lending in a bank: governance and limits

Module 01 / 5 · 60 min · Free preview

Why loans are a bank's largest risk, who may approve what, and which regulatory limits no officer can override.

In this module you will learn to

  • Explain the difference between credit policy and credit procedure
  • Describe the roles of the Board, credit committees, credit analysis and branches
  • Route a loan request to the right approval authority by amount and type of decision
  • Apply the NBE single borrower and related party limits to a borrower group
  • Name the five NBE loan classes and their minimum provisions

Built on

  • Erudite Africa training module: Level 1: Credit Foundations (October 2026)
  • Erudite Africa credit training program overview and Ethiopian context module (October 2026)
  • A commercial bank's Revised Credit Procedure Manual (August 2025), unnamed
  • NBE directives as listed in the lessons, including SBB/87/2024, SBB/88/2024, SBB/90/2024, SBB/91/2024 and CRB/02/2019
  • Ethiopian laws as cited: Banking Business Proclamation No. 1360/2025, Movable Property Security Right Proclamation No. 1147/2019, Proclamation No. 97/1998

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.