Regulatory Alerts2021-09-02
Circular dated September 2, 2021 regarding instructions for recovery plans
The Central Bank of Egypt has issued instructions for banks to prepare recovery plans to ensure their readiness and ability to respond effectively to potential economic or financial pressures. The plans aim to enhance the resilience of the Egyptian banking sector by establishing a culture of crisis management. Banks are required to submit their first recovery plan within 90 days of the end of the 2022 financial year. The plans should include a comprehensive set of assumptions, potential adverse events, and corrective actions to restore financial stability. The scope of application covers all banks operating in Egypt, including domestic and foreign bank branches and subsidiaries. The plans should be updated every two years or when significant changes occur in the bank's activities, structure, or investments. The plans should also align with the bank's risk management framework and include detailed financial and operational information. The Central Bank will review and evaluate the plans to ensure their quality, effectiveness, and compliance with regulatory requirements.