Whereas, a business process supported by information technology improves the efficiency, effectiveness and competitiveness of a capital goods financing company;

Whereas, some capital goods financing companies are running their operations manually or their operations are inadequately supported with information technology;

Whereas, it has become important to require capital goods financing companies to automate at least their core business processes and their management information system;

Whereas, risks related to the usage of information technology should be adequately and periodically identified and managed to ensure the safety and soundness of individual capital goods financing company and the sector as a whole;

Now, therefore, in accordance with Articles 18(4) of the Capital Goods Leasing Business
Proclamation No. 103/1998 (as amended by Proclamation No. 807/2013), the National Bank of
Ethiopia has issued this Directive.