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Regulations - Financial

NBE deregulates interest rates of deposit and lending

Jan 18, 2026
NBE deregulates interest rates of deposit and lending

Here are the 10 key takeaways from the National Bank of Ethiopia’s Directive No. NBE/INT/13/2026 (Interest Rates As Amended) 

  1. Interest rates are now market-determined.
    Banks may freely set deposit and lending interest rates based on competitive market forces. 

  2. Directive applies to all NBE-licensed banks.
    The regulation governs both conventional and interest-free financial institutions operating in Ethiopia. 

  3. Deposit rates (demand, saving, time) are fully liberalized.
    Each bank’s Board of Directors must approve and document its interest rate criteria. 

  4. Boards must set written rate criteria.
    Banks must articulate clear, non-discriminatory standards for all deposit and lending rates. 

  5. Submission deadlines for rate changes introduced.
    Banks must notify NBE within five working days of setting or changing rate schedules. 

  6. Weighted average reporting requirements instituted.
    Monthly weighted average deposit and lending rates must be submitted to the NBE within seven days. 

  7. Inter-bank lending rates are deregulated.
    Inter-bank rates will be negotiated directly between banks rather than centrally fixed. 

  8. Existing contracts are generally protected.
    Loans and deposits in place before January 9, 2026, are not subject to new rate regimes unless agreed otherwise. 

  9. Central bank retains some rate authority.
    NBE continues to set rates for its own lending facilities and standing instruments. 

  10. Repeals all prior interest-rate directives.
    Previous interest rate controls and floors, such as minimum savings rates, are officially removed. 

    If you want to download the full regulation file, click here:  https://wahidbusinessnews.com/admin-dashboard/admin_app/resourcesmodel/24/change/