Prudential rules in plain language

Module 04 / 5 · 65 min

Understand what the NBE's capital, liquidity, concentration, investment and provisioning rules require and why each one protects depositors.

In this module you will learn to

Explain the three capital ratios of SBB/95/2025 and compute a simple capital ratio
Describe why liquidity rules and the loan-to-deposit ratio matter
Apply the large exposure and related-party limits to simple figures
State the SBB/92/2024 investment limits
Classify a loan by days past due and compute minimum provisions under SBB/90/2024

Built on

Erudite Africa Ethiopian Context course specification: 1.a Ethiopian Banking Law and Regulation, Level 1 (October 2026)
Erudite Africa Ethiopian Context programme overview and regulatory register (October 2026)
National Bank of Ethiopia Proclamation No. 1359/2025 and Banking Business Proclamation No. 1360/2025
NBE directives as listed in the lessons: SBB/72/2019, SBB/87/2024 to SBB/92/2024, SBB/93/2025, SBB/94/2025, SBB/95/2025, SBB/99/2026, NBE/INT/13/2026, FXD/01/2024, FCP/01/2020
NBE Monetary Policy Committee meeting No. 7 press release (13 July 2026)
Capital Market Proclamation No. 1248/2021 and ECMA Directive No. 980/2024

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.