WHEREAS, it is necessary to maintain public trust and confidence by ensuring that banks have sufficient level of liquidity at all times;

WHEREAS, there is a need to maintain liquidity requirement consistent with reserve requirement of banks;

WHEREAS, it is essential to ensure that banks properly manage their liquidity;

NOW, THEREFORE, in line with powers vested in it by articles 20(1) and 59(2) of Banking Business Proclamation No. 592/2008, the National Bank of Ethiopia has issued these directives.