2022-04-28 | CBE4.1.3

CBE Regulation Book 4.1.3 - Banking Financing Controls For The Acquisition Of Companies, And Valuation Of Goodwill

The document outlines regulations for bank-provided financing for acquisitions of companies and the assessment of goodwill. It defines the circumstances under which the value of internally generated goodwill is recognized and how it is evaluated when resulting from an acquisition between unrelated companies. The document also sets out requirements for banks to follow when providing financing for acquisitions, including having an approved policy in place, assessing cash flow sufficiency, conducting comprehensive financial and legal due diligence, and performing financial analysis. There are also provisions for increasing risk-weighted capital requirements and limits on the total financing provided by banks for acquisition purposes.

Egypt

Central Bank of Egypt

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