Amendment to the Deadline for Submitting the Internal Capital Adequacy Assessment Report

Cairo on: February 3, 2025

Dear Chairman of the Board of Directors,

Greetings,

With reference to the circular letter issued on March 9, 2016, regarding the instructions for "Internal Capital Adequacy Assessment," and in order to facilitate matters for banks by providing adequate time to prepare and approve the Internal Capital Adequacy Assessment report, thereby ensuring its quality and achieving the intended objective, the Board of Directors of the Central Bank of Egypt, in its session held on January 28, 2025, decided to amend Item No. (4) of the aforementioned instructions, which relates to the periodicity of submitting the Internal Capital Adequacy Assessment report, to read as follows:

"The self-assessment process for capital adequacy is based on the implementation of governance principles and risk management, monitoring, and follow-up within the bank. Therefore, this process must be conducted continuously and approved and reviewed annually by the bank's Board of Directors.

Banks must submit the Internal Capital Adequacy Assessment report annually to the Supervision and Inspection Sector - Office Supervision Department - of the Central Bank of Egypt within 90 days from the date of the bank's General Assembly meeting. As for foreign bank branches, the maximum deadline for the report is the end of June of each year. The Central Bank must be notified of any major changes that may occur during the year regarding the content of that report. Furthermore, banks may be requested to submit this report for any other time period when necessary, to be submitted within a maximum of 90 days from the date of such request.

The aforementioned report must clarify how the Internal Capital Adequacy Assessment process is applied to all bank activities, the volume of acceptable risks, and the amount of capital estimated to cover those risks."

Please be kind enough to ensure implementation of the aforementioned decision effective from its date.

Accept our highest appreciation and respect,

Hassan Abdallah