Legal Framework for Bank Acquisition of Immovable Assets Following Failed Second Auction: Valuation Standards and Regulatory Gaps in Ethiopia
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Date
2025-06-01
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Addis Ababa University
Abstract
This research analyzes the legal framework governing the valuation and acquisition of immovable assets by Ethiopian banks, in particular focusing on circumstances where a second auction for distressed assets has failed. The study critically assess existing laws, regulations, and directives that dictate the processes of asset valuation, bid pricing, and eventual transfer of ownership to banks when conventional auction mechanisms prove unsuccessful. This research aims to identify potential gaps, inconsistencies, or ambiguities within the current legal provisions that may hinder efficient resolution of non-performing loans and the effective recovery of bank capital. Through doctrinal methodology analysis of these legal instruments, the research look to identify systemic challenges presented by the current framework and to propose recommendations for policy reforms that could streamline the asset recovery process, improve financial stability, and foster a more efficient secondary market for non-performing assets market in Ethiopia, characterized by increased transparency, liquidity, and investor confidence
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Legal Framework Governing the Valuation