AmendmentFintech

Licensing, Credit Information and Examination Fees of Microfinance Institutions (Directive No. 951/2022)

National Bank Of Ethiopia951/2022

Summary

This directive revises and introduces new fees for services provided by the National Bank of Ethiopia to microfinance institutions, including licensing, credit information, and examination fees. It also repeals specific articles from previous directives.

Who's affected

Microfinance institutions operating in Ethiopia.

Action required

Microfinance institutions must pay the specified fees for new licenses, renewals, branch licenses, and examination services as outlined in the directive. They must also ensure their annual license renewals are completed between August 1 and October 31.

Key points

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  • New and revised fees for microfinance institutions' licensing, credit information, and examinations.
  • Specific fee amounts are detailed for various services.
  • Annual license renewal window is August 1 to October 31.
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    • Examination fees are tiered based on institution size (big, medium, small).
    • Credit information fees are based on loan amount requested.
    • Repeal of Article 9 from Directive No. 300/2020 and Sub-article 10.1 from Directive No. CRB/02/2019.

Requirements

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  • Microfinance institutions must pay an investigation/application fee of Birr 20,000 for a new license.
  • Microfinance institutions must pay a licensing fee of Birr 30,000 for a new license.
  • Microfinance institutions must pay a renewal/replacement fee of Birr 30,000 for their business license.
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    • Microfinance institutions must renew their business license annually between August 1 and October 31.
    • Microfinance institutions must pay a fee of Birr 3,000 per branch for a new branch license or replacement.
    • Annual examination fees vary based on the size of the microfinance institution: Birr 50,000 for big, Birr 37,500 for medium, and Birr 25,000 for small.
    • Fees for credit information depend on the aggregate loan amount requested.

Rights and permissions

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  • The right to apply for and obtain a microfinance business license.
  • The right to apply for renewal or replacement of a business license.
  • The right to apply for a new branch license or replacement.
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    • The right to obtain credit information from the National Bank.

Restrictions

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  • Fees must be paid for the services mentioned in the directive.
  • Annual license renewal must occur within a specific period.

Objectives

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  • To improve the service quality of the National Bank of Ethiopia.
  • To revise existing fees and introduce new ones for services provided to microfinance institutions.
  • To establish clear fee structures for licensing, credit information, and examinations.

Organizations

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  • National Bank of Ethiopia

Legal references

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  • Micro financing Business Proclamation No. 626/2009
  • Microfinance Business (Amendment) Proclamation No. 1164/2019
  • Banking Business Proclamation No. 592/2008
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    • Banking Business (Amended) Proclamation No. 1159/2019
    • Requirements for Licensing and Renewal of Microfinance Business Directives No. 300/2020
    • Establishment and operation of Credit Reference bureau Directives No. CRB/02/2019
Original sourcehttps://justice.gov.et/en/directives/licensing-credit-information-and-examination-fees-of-microfinance-institutions-directive-no-951-2022/
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