The UK’ Standard Chartered Bank to start full-fledged operation in Egypt

Doaa A.Moneim , Thursday 27 Jan 2022

The UK’s Standard Chartered Bank is poised to establish a fully-fledged banking operation in Egypt after obtaining the in-principal approval from the Central Bank of Egypt (CBE) on 27 September 2021, the bank announced on Thursday.

standard chartered

The anticipated operation will be setting up a branch of the bank in Egypt instead of its current representative office.

The bank is currently proceeding in accordance with the CBE’s requirements and as per Banking Law no. 194 for 2020 in order to obtain the final approval for the branch’s establishment.

The move comes in light of the resilience and strength of the Egyptian economy, the bank said.

“Thanks to the wise leadership of the CBE, the banking sector has experienced great stability during the past few years, which enabled it to seamlessly manage various challenges,” a statement by the bank said.

It also added that the CBE’s strategy established a successful framework centred on strengthening the sector’s financial solvency, ensuring effective governance, implementing precautionary measures that led to maintaining financial support and high capital requirements that exceed the established minimum, as well as high liquidity ratios.

This mirrored positively on the overall Egyptian economy, the bank noted.

The Standard Chartered Bank — a leading international banking group — is a Limited Liability company based in the UK and owned by Standard Chartered PLC. It has a history of 165 years and currently serves clients in over 85 markets around the world.

The Middle East, where the Standard Chartered Bank currently has a presence in nine countries, is a core part of the bank’s footprint, along with Asia and Africa.

It is also a multi-award winner within Africa and the Middle East; the bank’s strong international network and its high financial capacity is well regarded by the business community and rated highly by international credit agencies.

According to Law no.194 for 2020, the issued fully paid capital of a foreign bank that seeks to establish a branch in the domestic market must be no less than EGP 5 billion, while the capital dedicated to its branch activity must be no lower than $150 million or its equivalent in other currencies.

The law also allows foreign banks to operate in the country without fear of prejudice in the rules of competitiveness or a monopoly.

On Tuesday, the International Monetary Fund (IMF) upgraded Egypt’s real GDP growth projections by 0.4 percent in 2022 to 5.6 percent, up from the 5.2 percent the fund expected in October 2021.

The IMF said that Egypt managed to do well amid the pandemic compared to oil-importing countries, adding that the impact of COVID-19 on the Egyptian economy has been well managed so far.

It also noted that there is stronger data coming from Egypt in terms of economic performance that drove the revision of its real GDP growth without giving further details.

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