2022-03-28 | CBE3.9

CBE Regulation Book 3.9 - Concentration Of Credit Banks’ Portfolios

In an effort to diversify banks' client bases and reduce credit risk concentration, the Central Bank of Egypt has issued instructions regarding the concentration of credit portfolios in a limited number of large companies. Banks are given a year to comply with the instructions, which include calculating the total credit facilities granted to the top 50 clients, considering used and unused facilities, and applying additional risk weights to the excess value when calculating the capital adequacy ratio. To support banks during the COVID-19 pandemic, the Central Bank of Egypt decided to exempt banks from applying credit portfolio concentration limits for the top 50 clients until the end of December 2022.

Egypt

Central Bank of Egypt

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