Regulatory Alerts2022-04-28 | CBE4.1Added · Updated
CBE Regulation Book 4.1 - Controls For Granting Credit, Financing Micro Companies And Enterprises
The Central Bank of Egypt mandates that banks granting microfinance must establish internal policies, report credit limits to the Egyptian Credit Bureau (Score-I), and classify these facilities under the "microfinance" customer category rather than personal loans. Banks are required to verify that borrowers do not exceed three loans from three institutions, ensure the regulated entities maintain a financial leverage ratio not exceeding ten times, and adhere to a 25% aggregate credit limit. The regulation further requires licensed microfinance companies and associations to submit monthly reports, provide audited financial statements, and maintain specific profitability and liquidity ratios as detailed in the attached credit study standards.