President Abdel-Fattah El-Sisi has ratified Law 194/2020 regulating the work of the Central Bank of Egypt (CBE) and the banking sector.
The law aims at maintaining banking and monetary stability, avoiding financial crises, and improving the banking sector's performance.
It is also meant to support the sector's competitiveness on the global scene and to achieve Egypt’s economic development.
The new law targets enhancing the CBE’s governance and independence within the framework of the constitution.
The law also aims to raise the CBE’s capital to EGP 20 billion to help it meet its financial obligations.
According to the new law, the CBE governor will be named by the president and approved by parliament. The governor's tenure may extend to a once-renewable four-year term.
The law stipulates that banks operating in Egypt should have capital of at least EGP 5 billion and representation offices should have capital amounts of at least EGP 150 million, creating a new system for settling the conditions for defaulting banks, with the objective of maintaining the stability of the banking sector and protecting the interests of depositors.
It also aims to catch up with the latest developments in the banking sector and operations and services, such as e-payments, fintech businesses, and cryptocurrencies.
The law comprises 294 articles and was passed by parliament on 17 May. It was referred to the State Council to be revised in constitutional and legal terms.
Currently, the CBE and the 38 operating banks in the Egyptian market are subject to Law 88/2003.