Regulatory Alerts2022-04-28 | CBE4.1CBE Regulation Book 4.1 - Controls For Granting Credit General Controls For Granting Credit
The chapter outlines general guidelines for granting credit, including the risks associated with granting loans, such as the risk of default and the potential impact on the bank's reputation and customer deposits. It emphasizes the importance of adhering to established banking practices, regulations, and guidelines set by the Central Bank of Egypt. The chapter also highlights the need for banks to assess the purpose of loans, ensure compliance with agreed-upon terms, and maintain adequate provisions for potential loan losses. It further emphasizes the responsibility of banks to assess the financial standing of borrowers and the need to obtain adequate collateral or guarantees. The chapter provides detailed guidelines for various types of credit facilities, including loans secured by goods, commercial papers, and financial securities. It also addresses credit facilities for industrial, real estate, and hotel projects, as well as unsecured loans.