CBE approves amendments on forming banks’ board of directors

Doaa A.Moneim , Monday 15 Nov 2021

The Central Bank of Egypt (CBE) approved on Sunday new amendments to the rules on the formation of banks’ board of directors.

File Photo: Central Bank of Egypt s headquarters is seen in downtown Cairo, Egypt . (Photo: Reuters)

The chairman and the CEO are to be separate positions, so no one individual can hold both positions simultaneously, according to the amendments, which has been published on the CBE website.

Each bank’s board will have a maximum of two executive directors, and the remaining board members will be non-executives. Two of the board members are to be independent and can hold their position for a maximum of six years over two terms.

Furthermore, each bank’s board will include at least two women.

Minority shareholders who own more than 5 percent of the bank’s shares will be represented on the bank’s board.

The CBE said that the new amendments aim to ensure a diversity of qualifications and skills and achieve a balance between executive and non-executive directors.

The CBE added that the amendments are in line with international standards.

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