2024-03-04 | CBE4.12

CBE Regulation Book 4.12 - Controls Using Alternative Data For Credit Evaluation 12

The Central Bank of Egypt has issued guidelines for the use of alternative data in credit scoring for micro, small, and medium-sized enterprises. These guidelines allow banks to grant financing to these businesses without requiring audited financial statements, provided they use digital assessment models that analyze customer behavior, social data, and financial and non-financial transactions. The maximum annual revenue for eligible businesses is set at 20 million Egyptian pounds, and the financing must be in local currency. Banks are required to develop policies and procedures for these models, which must be approved and periodically reviewed by their boards of directors.

Egypt

Central Bank of Egypt

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