Regulatory Alerts2022-04-28 | CBE4.1Added · Updated
CBE Regulation Book 4.1 - Controls For Granting Credit General Controls For Granting Credit
The Central Bank of Egypt establishes general controls for granting credit, requiring banks to conduct in-depth studies of borrowers' financial positions, credit history, and repayment capacity before approving any facilities. The regulation mandates strict adherence to the approved purpose of funds, prohibits using credit for foreign currency deposits or speculative activities, and sets specific collateral requirements for goods, commercial papers, and securities. It further outlines procedures for guarantee letters, project financing, and unsecured credit, emphasizing risk diversification, internal approval hierarchies, and continuous monitoring of credit utilization.
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