Regulatory Alerts2013-01-27
Added · Updated
Basel II Instructions: Minimum Capital Adequacy Ratio
The Central Bank of Egypt mandates that banks operating in Egypt, excluding branches of foreign banks, maintain a minimum capital adequacy ratio of 10% between core capital elements and risk-weighted assets to cover credit, market, and operational risks. Foreign bank branches are subject to the attached instructions except for this specific retention ratio. Banks must comply with these controls starting in December 2012 or June 2013 depending on their fiscal year-end, with a maximum six-month transition period for parallel reporting to ensure data validity. Non-compliance requires submission of a specific timeline to the Supervision and Control Sector, and previous capital adequacy regulations are repealed after the transition period.