2016-08-17

A circular dated January 11, 2016 regarding the concentration of banks’ credit portfolios

In a letter dated January 11, 2016, the Central Bank of Egypt announces a decision to reduce the maximum credit exposure to a single client from 20% to 15% of the bank's capital base and to a client and its related parties from 25% to 20%. The letter also states that if the total credit facilities granted to the top 50 clients and their related parties exceed 50% of the bank's credit portfolio, a weighted risk factor will be applied to the excess amount when calculating the capital adequacy ratio.

Egypt

Central Bank of Egypt

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