Regulatory Alerts2014-03-31
Providing the Central Bank with sufficient data and details of participation in financial or non-financial companies in which it is planned to contribute more than 5% of the company’s capital within a period of not less than two months.
Egyptian Central Bank (ECB) Governor Hisham Ramez issued a warm greeting and said: The Egyptian Central Bank plays a significant role in setting and enforcing regulatory standards that ensure banking safety and sound performance. The ECB requires banks to contribute 5% or more of their capital to any financial or non-financial joint venture if they wish to participate, as it aligns with the Central Bank's efforts before taking action to contribute information on these ventures within two months. This disclosure should include details about the purpose and main activities of the joint venture, names of shareholders and investors, information about original shareholders when existing shareholders join the venture, a designated CEO managing the joint venture, target bank participation percentage, expected returns, exit strategies, and ECB's guidelines on maximum exposure limits for banks investing in equities.