Regulatory Alerts2017-11-28
A circular dated November 28, 2017 regarding amending the limits of banks’ currency positions
On November 28, 2017, the Governor of the Central Bank of Egypt, Hisham Ramez, issued a notice stating that banks operating in Egypt must comply with the Basel III standards by December 31, 2017. These rules included: - A cap on the combined foreign and local currency profits or losses of foreign branches at 10% of shareholder funds. - A cap on overall foreign and local currency profits or losses at 20% of shareholder funds. - Domestic branches must also adhere to a 10% cap on profits or losses. These measures came into effect from the first day of December 2017 and were applied daily, with the aim of preventing banks from exceeding the specified caps in relation to shareholder funds. The Basel III standards were implemented globally following the financial crisis in 2008 to strengthen the banking sector and reduce the risk of future crises.