Whereas, there is a need to raise the minimum paid-up capital of microfinance institutions operating in the country so as to improve their capacity to serve the growing needs of their customers;

Whereas, it is critical to strengthen the microfinance institutions’ capital position in order to ensure their viability, resiliency, and sustainability in a dynamic environment;

Whereas, it is necessary to protect depositors’, creditors’, and the general public’s interests, as well as to foster public trust in microfinance institutions;

Now therefore, pursuant to the authority vested in it under articles 14 (1), 14 (2/b) and 34 (2) of Micro financing Business Proclamation No. 626/2009 (as amended by Proclamation No. 1164/2019), the National Bank of Ethiopia has issued this Directive.