JMR Infotech helps Ethiopian lenders prepare recovery plans

By Vriti Gothi

JMR Infotech, has supported Ethiopian banks as they prepare to comply with the National Bank of Ethiopia’s (NBE) Recovery Plan of Banks Directive No. SBB/93/2025.

The directive, which came into effect on 13 May 2025, requires all banks in Ethiopia to develop and submit credible recovery plans designed to withstand severe financial stress without the need for government intervention. The first submission is due by 13 January 2026, with penalties of $687.72 for non-submission and $343.86 for delayed updates.

In line with international Basel III standards, the regulation mandates a proactive approach to financial resilience, emphasising early identification of distress, continuity of critical banking services, and strengthened governance. Banks are expected to outline governance structures, recovery triggers such as capital adequacy ratio (CAR), liquidity coverage ratio (LCR), and non-performing loan (NPL) ratio, along with stress testing, recovery options, communication strategies, and preparatory measures.

“The NBE’s Recovery Plan Directive is a significant step towards strengthening Ethiopia’s financial ecosystem,” said Suresha Ramachandra Iyer, President & Head Enterprise Risk and Analytics, JMR Infotech. “At JMR Infotech, we are committed to empowering Ethiopian banks with the right tools, expertise, and frameworks to not only achieve compliance but also build long-term resilience.”

Leveraging more than two decades of global experience in regulatory compliance, risk management, and digital banking transformation, JMR Infotech has worked with leading financial institutions across Africa, the Americas, Asia, Europe, the Middle East, and Oceania. The company delivers proven solutions built on Oracle’s regulatory, risk, and compliance platforms, enabling banks to address complex requirements with precision and efficiency.

JMR Infotech’s suite of capabilities spans liquidity risk management under stress scenarios (including LCR and NSFR), advanced stress testing and scenario analysis for adverse market environments, and the development of accurate, integrated data foundations that ensure regulatory alignment. These solutions are designed not only to help Ethiopian banks meet the upcoming directive on time but also to embed stronger resilience and governance into the fabric of their operations.