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Erudite AfricaCenter of Excellence
← Interest Free Banking Financing: Advanced

The financing approval system

Module 01 / 7 · 65 min · Free preview

Decide IFB financings inside delegated limits, with a valid quorum, declared conflicts and a Financing Approval Form you have actually challenged.

In this module you will learn to

  • Explain how the Board delegates Discretionary Financing Limits (DFL) to committees and individuals and reviews them
  • Route a request to the right committee, including appeals, exceptions and related-party transactions above the Board threshold
  • Run a valid committee meeting: quorum, recorded dissent and the management of conflicts of interest
  • Read a Financing Approval Form critically and ask the questions that test structure, risk and Sharia'h fit
  • Communicate a decision and handle reconsideration and appeal correctly

Built on

  • Erudite Africa training outline: Interest Free Banking Financing, Level 3 Advanced (October 2026)
  • A typical Ethiopian bank's IFB financing business procedure (May 2025), unnamed: approval system, grading, follow-up, problem finance, write-off, portfolio management and exceptions
  • NBE Bank Corporate Governance Directive No. SBB/91/2024 (influential shareholder at 2%) and Risk Based Capital Adequacy Requirement for Banks Directive No. SBB/95/2025, issued under Banking Business Proclamation No. 1360/2025
  • NBE directives on interest free banking, large exposures, related parties, and asset classification and provisioning, in their current versions
  • AAOIFI Sharia'h Standards, including Sharia'h Standard No. 8 (Murabaha); the host bank's Sharia'h Advisory Committee rulings take precedence
  • IFRS 9 Financial Instruments: expected credit loss staging

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.