Regulators to Let Banks Guard Foreign Investors’ Assets without Subsidiaries
Commercial banks could become custodians for foreign portfolio investors without setting up separate subsidiaries, under a framework the Ethiopian Capital Market Authority and the National Bank of Ethiopia are considering. The banks would hold investors' securities in ring-fenced and in-house departments. The Central Bank's investment directive, issued in 2024, bars banks from directly operating as capital market service providers, including custodians. Commercial banks could become custodians for foreign portfolio investors without setting up separate subsidiaries. Under... Charged with transforming colossal state-owned enterprises into modern and competitiv...