January 16, 2017
  • Business Criterion
  • Saving Account Opening
  • Any interested individual with valid identification card.
  • International Trade Business
  • Tax Identification Number(TIN)
  • Valid and Renewed Trade License
  • Valid and Renewed Investment License
  • Account Number from National Bank of Ethiopia
  • Not involved in Delinquent list from National Bank of Ethiopia
  • IFB financing
  • Permissibility of  businesses
  • Lawful business activities
  • Tax Identification Number(TIN)
  • Valid and Renewed Trade License
  • Valid and Renewed Investment License
  • More than a year experience in similar business
  • Not involved in Non-performing Loan and should be between one and four grade risk.
  • Financial Administration
  • Profit Equalization Reserve: - is a fund left from Net Income of the pool during periods when the profit to be paid to customers are above market price, which helps to smoothen the regular profit payment to the depositors. In other words, the PER used to improve the returns to the depositors during periods when the pool’s [profits are below market expectations.  Prices shall be determined based on the supply (deposit) and demand (finance), thus the profit payable shall also vary accordingly
  • Investment Risk Reserve: - the pool may incur losses primarily due to unusually large write-offs and/or losses on sale of the pool’s investments or financing different products. To absorb or off-set the losses the Banks may create the investment Risk Reserve (IRR) to cover the future investment losses.
  • Cash holding
  • IFB Special Account

  • Profit Distribution

The distribution of profit or loss on Mudaraba Saving Account or Mudaraba Deposit Account is depend on the profit or loss involved in financing product or investment. Profits are distributed after the bank has collected commission income and other similar incomes for the service of financing.