Egypt's parliament considering banking system draft law
Egypt’s new Central Bank of Egypt draft law could raise the minimum capital requirement for banks tenfold.
CAIRO — According to Egyptian parliamentarians who spoke with Al-Monitor, the Egyptian parliament is currently considering the Central Bank of Egypt (CBE) draft law, also known as the CBE and banking system law. The new law may raise the minimum capital requirements for banks tenfold.
The state-run Middle East News Agency (MENA) cited a Central Bank official it did not identify as saying the new law raises the amount of capital needed to 5 billion pounds ($294 million) from 500 million ($29 million). Branches of foreign banks will need at least $150 million, up from $50 million.
The official said May 21 this step aims to support lenders’ capital bases in the face of potential risks and enhance their ability to compete with other banks regionally and internationally.
Basant Fahmi, a member of the parliamentarian Economic Affairs Committee, praised the draft law, saying it would enrich the banking sector in Egypt as part of a CBE package of structural reforms.
