Regulatory Alerts2019-12-04
A circular dated December 3, 2019 regarding conducting a field inquiry about suppliers of credit clients
In a statement made on December 3rd, 2019, Al-Najm emphasized the importance of Egyptian banks to thoroughly examine client activities and guarantee the proper use of guarantees granted for their purpose. He also highlighted the need for ensuring safe commercial operations based on the loans they provide. This includes obtaining reliable information about suppliers, conducting field assessments of local suppliers, obtaining trade records for suppliers before engaging in any transactions, and periodically updating the instructions given. For existing supplier beneficiaries, a three-month grace period is provided to carry out field assessments. Al-Najm's statement concluded by requesting banks to strictly adhere to the mentioned guidelines and expressing high regard for them.