Whereas, it is important to strengthen the safety and soundness of capital goods finance companies by creating a consistent capital adequacy measurement;

Whereas, it is essential to measure the level of capital adequacy of capital goods finance companies according to perceived level of risks of balance sheet items, so as to build the level of confidence in the industry;

Now, therefore, in accordance with powers vested in it under Articles 4 (4) and 18 (4) of Capital Goods Leasing Business (Amendment) Proclamation No 807/2013, the National Bank of Ethiopia has issued these directives.