Regulatory Alerts2020-05-05
A circular dated May 5, 2020 regarding the implementation of the International Financial Reporting Standard (IFRS9) in light of the Corona crisis
The Egyptian Banking Institute has announced that it is committed to applying the Basel III framework by June 2021, with the International Financial Reporting Standards (IFRS) being followed since February 26, 2019. Egypt's Central Bank Governor, Tarek Amer, stated that the country's banking system should be fully compliant with this international standard by June 2021. The Basel III framework consists of several key aspects including a minimum capital requirement of 10.5% for banks to ensure financial stability. It also addresses the problematic aspects of the banking industry such as the misuse and undercapitalization of certain institutions, hence ensuring that banks have enough capital reserves to endure any economic downturns or market instabilities.