Regulatory Alerts2013-01-27
Basel II instructions
The Central Bank of Egypt issued a circular to all banks operating in Egypt regarding the application of the best international practices in line with the latest developments in the banking sector and in light of the strategic plan announced by the Governor of the Central Bank of Egypt during the conference held in October 2009. The circular includes the following: The Board of Directors of the Central Bank of Egypt decided in its meeting held on December 18, 2012 to approve the following: First: All banks operating in Egypt are required to maintain a minimum capital adequacy ratio of 10% of the risk-weighted assets (RWA) and the capital components (denominator) to cover credit, market and operational risks. Second: The provisions of the circular shall be applied to the branches of foreign banks operating in Egypt with the exception of maintaining the minimum capital adequacy ratio of 10%. Third: All banks operating in Egypt are required to apply the provisions of the circular as of December 2012. The banks that prepare their financial statements as of December 31st of each year shall apply the provisions of the circular as of December 2012. The banks that prepare