Regulatory Alerts2012-05-10
Guiding controls for approving requests to open new bank branches/agencies
The letter outlines the Central Bank of Egypt's policy to encourage the growth and expansion of banks in different regions of the country by reviewing the current criteria for approving new branches and establishing guidelines that consider financial stability and internal control systems. It emphasizes the need for banks to expand their services to underserved areas and outlines the regulatory framework for opening new branches, including capital adequacy, creditworthiness assessment, and currency balance. The Central Bank of Egypt's Board of Directors approved the guidelines on June 3, 2008, and requests banks to adhere to them when submitting applications for new branches. The letter also highlights the importance of banks developing expansion policies at the governorate level and having an effective risk management system.