Whereas, capital goods finance companies need to comply with the relevant legal and regulatory requirements at all times in order to enhance the level of trust and confidence of customers and also promote healthy development of capital goods finance sector in general;

Whereas, there is a need for the National Bank of Ethiopia to ensure that all capital goods finance companies are operating in compliance with the legal and regulatory requirements;

Whereas, there is a need to penalize and create accountability on a capital goods finance company that fails to comply with or violates the legal and regulatory requirements;

Now, therefore, in accordance with powers vested in it under article 4(5Xd) of the Capital Goods Leasing Business (Amendment) Proclamation No.807/2013 and article 18 (4) of Capital Goods Leasing Business Proclamation No. 103/1998 as mended by article 6 of the Capital Goods Leasing Business (Amendment) Proclamation No.807/2013, the National Bank of Ethiopia has issued these directives.