The Central Bank of Egypt
The CBE's decision on providing emergency liquidity for national banks is a future procedure that may be put into effect in the future, Hiatham Adel, the head of the Industrial Development Bank's treasury department, told Egypt's state News Agency MENA.
The provision of emergency liquidity for central banks is one of the tools used to support and help banks face liquidity crisis on the short term, he added.
The CBE said on Monday it has approved a set of rules under which it would be able to offer emergency liquidity to local lenders.
The CBE could provide in the future urgent liquidity to solvent banks if they fail to get it from interbank or financial markets, according to a circular.
It said that emergency liquidity is among several instruments provided by central banks to support banks facing liquidity crises in the short term that threaten operations.
The emergency liquidity will only be made available for a maximum period of 180 days, the CBE said, adding that the liquidity could be extended for a further period based on the bank’s financial position.