Key points from NBE Directive No. SBB/99/2026 (“Requirements for Licensing a Bank Branch to Operate in Special Economic Zones”):
Effective January 6, 2026, banks must obtain special NBE licenses to open branches in Special Economic Zones (SEZs).
SEZ bank branches must provide full banking and foreign exchange services to businesses and residents in the zone.
Applicants must meet prudential criteria: ≥1 % market share (exempt for new foreign branches first two years).
Capital adequacy must be 2% above regulatory minimum for four consecutive quarters. And Market share of the bank in terms of total assets shall be at least 1% of the total assets of the banking sector.
Liquidity and non-performing loan (NPL) ratios must meet regulatory limits continuously.
Why it matters:
This directive standardizes bank branch licensing in SEZs, ensuring only financially sound institutions serve these strategic economic areas. It strengthens banking support for trade and investment within zones. Clear prudential thresholds enhance risk discipline for SEZ financial infrastructure.
To see the full NBE directive click here: https://nbe.gov.et/wp-content/uploads/2026/01/DIRECTIVE-NO.-SBB992026-REQUIREMENTS-FOR-LICENSING-A-BANK-BRANCH-TO-OPERATE-IN-SPECIAL-ECONOMIC-ZONE-1-1.pdf