2022-03-28 | CBE3.4

CBE Regulation Book 3.4 - Liquidity Risk Management Liquidity Ratios In Local And Foreign Currencies

The chapter discusses liquidity risk management, specifically the local and foreign currency liquidity ratios that banks in Egypt must adhere to as per the Central Bank of Egypt's regulations. The minimum liquidity ratios for local and foreign currencies are set at 20% and 25%, respectively. The components of the numerator and denominator for calculating these ratios are outlined, including various financial instruments and liabilities. Non-performing assets, collateralized assets, and liabilities are excluded from the calculation. The average daily balance method is used to compute the ratios, and non-compliance may result in penalties as per the Central Bank of Egypt Law.

Egypt

Central Bank of Egypt

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