Egypt’s ruling military council approved amendments to laws regulating the Central Bank of Egypt (CBE), limiting the number of members on its board of directors and specifying stricter rules for their appointment.
The number of board members was cut down from 15 to nine, to include the governor, two deputies, the head of the Egyptian Financial Supervisory Authority, a representative of the minister of finance, and four members to be appointed by Egypt’s president.
The four appointed members are to be chosen for a term of four years, subject to renewal. They must not be working for or affiliated with any commercial banks, financing companies or professional advisory services.
The current character of the CBE board will be altered due to the new regulation, as it currently holds in its membership several top bank executives along with legal and financial professionals.
The members who will not be eligible to continue in the CBE board are: Hassan Abdalla of the Arab African International Bank; Abdel Salam El-Anwar of HSBC Egypt; Hazem Hassan of KPMG, Mohamed Barakat of Banque Misr, Mona Zulficar of Zulficar Law Offices, Alaa Sabaa of Beltone Financial and Tarek Amer of the National Bank of Egypt.
It is a common practice for board members of central banks worldwide to resign any other posts when they are appointed to central banks, to prevent any conflict of interest.