Regulatory Alerts2024-07-02
A circular dated July 2, 2024 amending the composition of banks’ boards of directors
Cairo, July 2nd, 2024: The Governor and Chairman of the Bank's Board of Directors addresses you cordially. In accordance with the instructions issued by the Banking Supervision Authority on August 23rd, 2011, and their amendments, as recorded in the Annex No. 11 of November 11th, 2021 relating to the composition of bank boards in order to enable banks to utilize the knowledge and experience of board members in managing their respective institutions efficiently and effectively when making decisions; the Board of Directors of the Central Bank has decided at its Extraordinary Meeting on June 25th, 2024 to amend paragraphs **3** of the aforementioned instructions as follows: - The composition of a bank board must include up to three non-executive directors - by the maximum limit. And in this regard, responsibilities lie with the non-executive directors to oversee high-level governance, and considering that the term of office for a non-executive director should not exceed two terms, or up to a maximum of six consecutive or non-consecutive years, with an option for an additional third term (three years) with strong provisions and upon approval by the Central Bank. I kindly ask you to adhere to **the stated decision.** I also request your highest regard and appreciation.