Regulatory Alerts2018-01-01
Decision of the Board of Directors of the Financial Regulatory Authority No. (193) of 2018 Regarding Financial Solvency Standards for Licensed Factoring Companies
The Financial Regulatory Authority issued Decision No. (193) of 2018 to establish mandatory financial solvency standards for licensed factoring companies in Egypt. The regulation mandates a minimum capital adequacy ratio of 10% (phasing up to 12%), requires specific risk-weighted asset calculations, operational risk coverage margins, and concentration risk limits, while enforcing strict liquidity, leverage, and provisioning rules for doubtful debts. Licensed entities must comply with these capital and reporting requirements within specified transition periods and submit regular solvency, liquidity, and governance reports to the Authority.
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