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2022-04-12 | CBE5.3

Added 2024-09-15 · Updated 2026-08-16

CBE Regulation Book 5.3 - Controls For The Issuance Of Bank Certificates Of Deposit To Establish Companies

The Central Bank of Egypt mandates that banks may only issue certificates of deposit for company establishment if the underlying funds originate from eligible sources such as bank loans, company capital, or specific government-approved deposits, and strictly prohibits using funds from prohibited sources like personal loans or unapproved deposits. Banks are required to verify the legitimacy of these funds, ensure that the total value of such certificates does not exceed 10% to 25% of the bank's capital depending on specific regulatory conditions, and maintain detailed records and reports for regulatory oversight. The regulation further requires banks to use standardized forms, report suspicious transactions, and adhere to specific capital adequacy and reporting deadlines set by various preceding and subsequent regulations.

Egypt

Central Bank of Egypt

Chapter Three Controls for the Issuance of Bank Certificates of Deposit for Establishing Companies and Those Related to the Bank's Transactions with Its Clients

The Central Bank of Egypt has issued the following controls:

The Central Bank of Egypt shall not issue certificates of deposit for establishing companies unless:

-1 The funds underlying the certificate of deposit are from eligible sources, such as a bank loan, company capital, or a deposit from the Central Bank of Egypt, provided that the model for the eligible source is approved by the Central Bank of Egypt, and that the certificate of deposit is issued in the name of the company being established or its authorized representative, and that the certificate of deposit is issued to the company being established or its authorized representative, and that the certificate of deposit is issued to the company being established or its authorized representative.

-2 The issuance of the certificate of deposit for establishing companies is subject to the prior approval of the Central Bank of Egypt.

-3 The models of the certificates of deposit for establishing companies are approved by the Central Bank of Egypt, and the bank issues the certificate of deposit for establishing companies according to the approved model.

-4 The Central Bank of Egypt shall not issue certificates of deposit for establishing companies if the bank's transactions with its clients exceed the limits set by the Central Bank of Egypt, or if the bank's transactions with its clients exceed the limits set by the Central Bank of Egypt.

The controls for the issuance of certificates of deposit for establishing companies are governed by Law No. 159 of 1981, as amended, and by Decision No. 8 of 1997 issued by the General Assembly of the Central Bank of Egypt, which stipulates that the Central Bank of Egypt shall not issue certificates of deposit for establishing companies if the bank's transactions with its clients exceed the limits set by the Central Bank of Egypt.

Central Bank of Egypt Decision No. 4 of 2007.
Central Bank of Egypt Decision No. 5 of 2012.
The Central Bank of Egypt imposes the following controls on banks:

-1 The Central Bank of Egypt shall not issue certificates of deposit for establishing companies unless the bank provides a guarantee from the Central Bank of Egypt or its authorized representative, in the form of a cash deposit or a bank guarantee, in an amount equal to the value of the certificate of deposit for establishing companies, and the bank shall deposit the amount of the certificate of deposit for establishing companies with the Central Bank of Egypt or its authorized representative, and the bank shall deposit the amount of the certificate of deposit for establishing companies with the Central Bank of Egypt or its authorized representative, and the bank shall deposit the amount of the certificate of deposit for establishing companies with the Central Bank of Egypt or its authorized representative.

-2 The value of the certificates of deposit for establishing companies issued by the bank shall not exceed 10% to 25% of the bank's capital, depending on the bank's capital adequacy ratio, as determined by the Central Bank of Egypt.

-3 The Central Bank of Egypt shall not issue certificates of deposit for establishing companies if the bank's transactions with its clients exceed the limits set by the Central Bank of Egypt.

-4 The bank shall issue the certificates of deposit for establishing companies as follows:

a. The bank shall issue the certificate of deposit for establishing companies in the name of the company being established or its authorized representative.

b. The bank shall issue the certificate of deposit for establishing companies in a standardized model approved by the Central Bank of Egypt.

c. The bank shall issue the certificate of deposit for establishing companies in a standardized model approved by the Central Bank of Egypt, and the bank shall report the issuance of the certificate of deposit for establishing companies to the Central Bank of Egypt.

-5 The bank shall not issue certificates of deposit for establishing companies if the value of the certificates of deposit for establishing companies issued by the bank exceeds 25% of the bank's capital.

Central Bank of Egypt Decision No. 3 of 2000.
Central Bank of Egypt Decision No. 5 of 2012.
The value of the certificates of deposit for establishing companies issued by the bank shall not exceed 25% of the bank's capital, as determined by the Central Bank of Egypt.

-6 The bank shall not issue certificates of deposit for establishing companies if the bank's transactions with its clients exceed the limits set by the Central Bank of Egypt.

-7 The bank shall not issue certificates of deposit for establishing companies if the bank's transactions with its clients exceed the limits set by the Central Bank of Egypt.

Central Bank of Egypt Decision No. 24 of 2003.