Regulatory Alerts2019-01-01
FRA Board of Directors Decision No. 142 of 2019 Regarding Nano Finance Regulations
The Egyptian Financial Regulatory Authority (FRA) issued Decision No. 142 of 2019 to regulate the offering of Nano Finance products by licensed microfinance companies. The decision mandates strict operational, data protection, and credit assessment protocols, including mandatory client consent, bi-weekly credit bureau updates, and the use of simplified awareness tools. It further establishes a tiered provisioning framework for doubtful debts based on payment delays, requires default risk insurance covering at least 25% of the portfolio monthly, and mandates bi-weekly portfolio reporting to the Authority.
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