Regulatory Alerts2022-03-28 | CBE3.4CBE Regulation Book 3.4 - Liquidity Risk Management Liquidity Ratios According To Basel Iii Resolutions
The Central Bank of Egypt has issued instructions for the application of liquidity risk management in the framework of Basel III, which includes the gradual application of the liquidity coverage ratio to reach 100% in 2019 and the net stable funding ratio with a minimum of 100%. These instructions apply to all banks operating in Egypt, including foreign bank branches. Banks must prepare the liquidity coverage ratio and net stable funding ratio on an individual basis (bank branches inside and outside the country) every two months and on an individual and/or consolidated basis (including the banking group, bank, and all its branches inside and outside the country and all financial subsidiaries except insurance companies) at the end of each quarter. Banks must apply the liquidity coverage ratio gradually for both local and foreign currencies according to the following schedule: 70% in 2016, 80% in 2017, 90% in 2018, and 100% in 2019. Banks must also maintain a minimum net stable funding ratio of 100% for all currencies (local and foreign) and for each currency separately within a maximum period of three months from the end of