Regulatory Alerts2022-03-28 | CBE3.3Added · Updated
CBE Regulation Book 3.3 - Financial Leverage
The Central Bank of Egypt mandates that all Egyptian banks and the excluded bank must maintain a financial leverage ratio of at least 3%, calculated as Tier 1 capital after deductions divided by total exposure, with full compliance required by June 2017. The regulation defines the numerator as Tier 1 capital and the denominator as the sum of on-balance sheet assets (excluding certain Tier 1 deductions), derivative exposures, securities financing transaction exposures, and off-balance sheet items converted using specific Credit Conversion Factors. Banks are required to calculate and disclose this ratio monthly starting from the first quarter of 2017, utilizing the detailed calculation methodologies and conversion tables provided in the attached appendices.
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