Whereas, investment related activities of banks require sound and prudent practices to effectively manage risks;

Whereas, diversification of business activities and setting limits for investments are essential tools for risk management;

Whereas, there is a need to ensure that banks focus on their core business which is debt financing managed at arm’s length;

Now, therefore, in line with powers vested in it by articles 22(1) and 59(2) of Banking Business Proclamation No. 592/2008, the National Bank of Ethiopia has issued this Directive.