NBE is drafting a new directive to set requirements to establish a mortgage bank in Ethiopia.

April 6, 2022

The National Bank of Ethiopia is drafting a new directive to set requirements to establish a mortgage bank in Ethiopia. This follows the continuous requests from industry insiders who have been pushing for the establishment of specialized banks. So far, NBE has licensed five commercials banks, two of which provide interest-free banking services. Goh Bank is the only self-proclaimed specialized financial institution that joined the banking industry as a mortgage bank, licensed under a conventional bank.


The directive will cover operating with different business models and provide long-term financing to clients. The aim is to ease the business climate for mortgage banks to flourish and address the housing demand. The new directive can alleviate the significant lack of finance that prevents individuals from buying a house. It will also incentivize anyone interested in setting up a specialized financial sector bank.

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