Whereas, it is vital to ensure the long-term stability and institutional success of the financial industry in general and the banking sector in particular;

Whereas, fitness and propriety of owners, directors and managers of banking systems are critical considerations that give the public confidence on the integrity of the sector;

Whereas, it is necessary to enhance the effectiveness and soundness of corporate governance
in banks;

Whereas, the National Bank of Ethiopia is mandated to put in place an appropriate framework that ensures prudent management and propriety of the manner in which banks are
directed;

Now, therefore, in accordance with articles 4(1 g and h), 14(4a), and 66(2) of Banking Business Proclamation No.592/2008 (as Amended by Proclamation No. 1159/2019), the National Bank of Ethiopia has issued this Directive.