The Central Bank of Egypt (CBE) Governor Tarek Amer said deposits in Egypt’s banking system totalled around EGP 4 trillion, 44 percent of which was used in the domestic market.
He stated at a CBE press conference on Thursday that Egypt had succeeded in restoring confidence in its economy through improvements in the CBE policy and its performance, adding that with investment flows, foreign reserves increased and the banking system became more stable with the elimination of the black market.
Amer pointed out that the latest CBE international reserves that reached $45.118 billion were the highest to be recorded. They reflected the better financial position of Egypt.
He also said that Egypt had taken significant steps in the financial inclusion policy which qualified it to chair the Alliance for Financial Inclusion.
“We saved the economy from collapsing with the support of the political leadership,” according to Amer.
Regarding the new banks law, Amer explained it was part of an integrated programme President Abdel-Fattah El-Sisi instructed the CBE to execute over the past three years.
He revealed the new law would enhance the CBE’s independence and improve governance basis in the CBE and Egypt’s banks. It would, in addition, maximise coherence and cooperation among the financial sector's supervising bodies.
Amer added the new law aimed at protecting Egypt’s banking system against financial crises, helping stumbling banks, and organising the supervision of payment services and financial technology.
He said that lending averages were weak in Egypt compared to other countries that made progress in this regard, clarifying that Egypt targeted increasing lending averages in the coming period.
“Unfortunately, Egypt’s economy is deprived of receiving funds in reasonable prices and in a suitable pace. To overcome this, we try to achieve competitiveness and increase funding rates, especially in small and medium-size enterprises (SMEs).
The cabinet approved the new banks law during its meeting on Wednesday.