Regulatory Alerts2020-01-01
Financial Regulatory Authority Board of Directors Decision No. 200 of 2020
The Financial Regulatory Authority (FRA) of Egypt issued Decision No. 200 of 2020 requiring non-banking financial companies—including those in mortgage financing, leasing, privatization, consumer financing, and SME lending—to establish a reserve equal to 1% of total assets. Funded from post-tax net profits for the fiscal year ending December 31, 2020, this reserve must be classified under shareholders' equity and remains restricted until explicitly approved for use by the FRA. Company boards are mandated to oversee compliance, ensure adequate implementation resources and IT systems, align business models with the new Egyptian Accounting Standard No. 47, and foster cross-departmental coordination for risk and credit policy development.
Share