Ethiopia - Apply for a Banking Business license

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Procedure

Apply In-Person:

1. To apply for a banking business license, applicant has to approach the National Bank of Ethiopia Contact link
2. An application form will be provided to the applicant from the respective officer.
3. Applicant has to fill in all necessary details in the given application form.
4. Applicant will make sure that he/she carry the necessary documents that are mentioned in the “Required Documents” section of this page.
5. The applicant has to attach the photocopies along with the application form and attested with applicant’s signature, and submit the application form.
6. Applicant has to pay the prescribed fee and submit the receipt as a proof of payment.
7. The authorities will verify your application and validate the submitted documents.
8. After verification process, notice of intention to engage in business will be circulated or published in a newspaper for once a week, for four consecutive weeks.
9. The National Bank shall decide on a banking business license application within 90 days from the last date of receipt of all information to be submitted
10. The license shall be issued upon payment of the licensing fee determined by the National Bank.
11. A license granted by the National Bank pursuant to this Proclamation shall constitute final authorization to carry on a banking business.
12. Where the National Bank amends the conditions of licensing, it shall notify the amendments to the concerned banks thirty days before the date on which the amendment becomes effective.
    

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Required Documents

• Completed application form
• Certification of incorporation
• Memorandum of article association.
• Copy of ID card.
• Evidence of provisional tax payment
• A tax clearance certificate.
• Fee payment receipt.
• Publish a notice of intention to engage in banking business in widely circulating newspapers;
• A minimum of one-fourth of the subscribed shares shall be fully paid in cash;
• Minimum paid-up capital paid in cash and deposited in a blocked account in a bank in the name of the prospective bank
• Directors, the chief executive officer and senior executive officers of the bank shall meet the qualification criteria prescribed by the National Bank.
• The premises, security arrangements and cash vault meeting National Bank standard.
• Proper book keeping Register
• Academic Qualification documents
• designation and specimen signature of the staff members.
• Address of applicant
  

Office Locations & Contacts

National Bank of Ethiopia
Addis Ababa,
Ethiopia.
Telephone: +251 115 517 430
Email: [email protected]
Fax: +251 115 514 588
Contact link

Eligibility

Any person or a group who intends to start a banking business are eligible for this license.

Fees

Fee for this procedure has to be paid as per the authority request.

Validity

The validity of the license is one year.

Documents to Use

Please attach documents that can be used by people. e.g. links

Sample Documents

Please attach sample completed documents that would help other people.

Processing Time

The processing time is 90 days. This time may vary depending on the availability and correctness of the information provided.

Related Videos

Videos explaining the procedure or to fill the applications.
Attach videos using the following tag <&video type=’website’>video ID|width|height<&/video&> from external websites.
Please remove the ‘&’ inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver,
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.g In the following url‘http://www.youtube.com/watch?v=Y0US7oR_t3M’ Video ID is ‘Y0US7oR_t3M’.

Instructions

• No person shall use the word ‘bank’ or its derivatives as part of the name of any financial institution unless it has obtained a license from the National Bank.
• Any person who objects the involvement of any of the founders as a shareholder in the proposed bank may submit, no later than thirty days starting from the date of the last publication, his objection in writing, with supporting evidence, to the National Bank.
• The National Bank shall initiate an inquiry into the objection. The results of such an inquiry shall be published and be considered in deciding whether or not to issue the license.
  

Required Information

• Name of the applicant and founders.
• Address.
• Phone number.
• Email ID.
• Banking details
• Shareholders details
  

Need for the Document

• To do banking business in Ethiopia, one must apply for this license.
• It is prohibited to transact banking business in Ethiopia without obtaining a banking business license from the National Bank.
• Where any person undertakes banking business without license and holds moneys or other property obtained through such act, the National Bank may apply to the Federal High Court for ordering the immediate and efficient return of such moneys or property to the depositors or owners.
  

Information which might help

A bank to which a license is granted shall:

• Full fill, before commencing operation, sound information management and internal control systems, risk management policies and procedures, and human resource organization and such other essential obligations to carryout banking business as determined by the directive to be issued by the National Bank and
• Commence its operation within 12 months from the date of the issuance of the license.
  

Other uses of the Document/Certificate

Please explain what are other uses of obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.

External Links

Link

Others

More information which might help people.