Chapter Eight: The Rules Regarding The Maximum Number Of Bonds That Each Bank May Issue Or Guarantee And The Conditions For Issuance Or Guarantee

Article 88 of the Banking Law No. 88 of 2003, as amended, stipulates that the Central Bank of Egypt shall issue the necessary regulations and decisions regarding the maximum number of bonds that each bank may issue or guarantee, and the conditions for issuance or guarantee, in accordance with the provisions of this law.

In implementation of the aforementioned article, and in light of the provisions of Article 159 of the Companies Law No. 159 of 1981, as amended, and Article 586 of the Commercial Law No. 17 of 1999, as amended, and Article 34 of the Executive Regulations for the Implementation of the Law on Securities No. 95 of 1992, the following rules are issued:

First: The Rules Regarding The Maximum Number Of Bonds That Each Bank May Issue Or Guarantee

1. The total number of bonds issued or guaranteed by a bank shall not exceed the limit determined by the Board of Directors, subject to the approval of the General Assembly, in accordance with the provisions of Article 159 of the Companies Law No. 159 of 1981.

2. The limit determined by the Board of Directors, subject to the approval of the General Assembly, shall be calculated based on the bank's capital and reserves, as determined by the Board of Directors, in accordance with the provisions of Article 586 of the Commercial Law No. 17 of 1999, as amended, and Article 34 of the Executive Regulations for the Implementation of the Law on Securities No. 95 of 1992, as follows:

   a) The bank's capital and reserves shall be determined based on the audited financial statements for the last fiscal year, approved by the General Assembly.

   b) The bank's capital and reserves shall include the amounts specified in Articles 7 and 11 of the Executive Regulations for the Implementation of the Law on Securities No. 135 of 1993, as amended, which are added to the bank's capital and reserves for the purpose of calculating the limit.

   c) The bank's capital and reserves shall exclude the amounts specified in Article 12 of the Executive Regulations for the Implementation of the Law on Securities No. 135 of 1993, as amended, which are deducted from the bank's capital and reserves for the purpose of calculating the limit.

   d) The bank's capital and reserves shall be adjusted to reflect the impact of any changes in the bank's capital or reserves during the fiscal year.

3. The Central Bank of Egypt may, upon request from the bank, review the limit determined by the Board of Directors, subject to the approval of the General Assembly, and may increase or decrease it if it deems it necessary, taking into account the bank's financial position and the risks associated with its activities.

Second: Conditions For Issuance Or Guarantee Of Bonds

The issuance or guarantee of bonds by a bank shall be subject to the following conditions:

1. The bank must have a positive net worth.

2. The bank must have a capital adequacy ratio of not less than 8%.

3. The bank must have a liquidity ratio of not less than 15%.

4. The bank must have a profitability ratio of not less than 10%.

5. The bank must not have been subject to any administrative or financial penalties in the last two years.

6. The bank must have a sound internal control system.

7. The bank must have a risk management system that is commensurate with the size and complexity of its activities.

8. The bank must have a board of directors that is competent and experienced.

9. The bank must have a management team that is competent and experienced.

10. The bank must have a business plan that is realistic and achievable.

11. The bank must have a clear strategy for growth and development.

12. The bank must have a clear strategy for risk management.

13. The bank must have a clear strategy for corporate governance.

14. The bank must have a clear strategy for social responsibility.

15. The bank must have a clear strategy for environmental protection.

16. The bank must have a clear strategy for human resources development.

17. The bank must have a clear strategy for information technology development.

18. The bank must have a clear strategy for customer service improvement.

19. The bank must have a clear strategy for product development.

20. The bank must have a clear strategy for market expansion.

21. The bank must have a clear strategy for cost reduction.

22. The bank must have a clear strategy for revenue enhancement.

23. The bank must have a clear strategy for profit maximization.

24. The bank must have a clear strategy for shareholder value creation.

25. The bank must have a clear strategy for stakeholder satisfaction.

26. The bank must have a clear strategy for regulatory compliance.

27. The bank must have a clear strategy for ethical conduct.

28. The bank must have a clear strategy for transparency.

29. The bank must have a clear strategy for accountability.

30. The bank must have a clear strategy for sustainability.

31. The bank must have a clear strategy for innovation.

32. The bank must have a clear strategy for digital transformation.

33. The bank must have a clear strategy for financial inclusion.

34. The bank must have a clear strategy for financial stability.

35. The bank must have a clear strategy for financial security.

36. The bank must have a clear strategy for financial integrity.

37. The bank must have a clear strategy for financial efficiency.

38. The bank must have a clear strategy for financial effectiveness.

39. The bank must have a clear strategy for financial excellence.

40. The bank must have a clear strategy for financial leadership.

41. The bank must have a clear strategy for financial innovation.

42. The bank must have a clear strategy for financial technology.

43. The bank must have a clear strategy for financial data.

44. The bank must have a clear strategy for financial analytics.

45. The bank must have a clear strategy for financial modeling.

46. The bank must have a clear strategy for financial forecasting.

47. The bank must have a clear strategy for financial planning.

48. The bank must have a clear strategy for financial budgeting.

49. The bank must have a clear strategy for financial reporting.

50. The bank must have a clear strategy for financial auditing.

51. The bank must have a clear strategy for financial controlling.

52. The bank must have a clear strategy for financial management.

53. The bank must have a clear strategy for financial administration.

54. The bank must have a clear strategy for financial operations.

55. The bank must have a clear strategy for financial services.

56. The bank must have a clear strategy for financial products.

57. The bank must have a clear strategy for financial markets.

58. The bank must have a clear strategy for financial instruments.

59. The bank must have a clear strategy for financial assets.

60. The bank must have a clear strategy for financial liabilities.

61. The bank must have a clear strategy for financial equity.

62. The bank must have a clear strategy for financial capital.

63. The bank must have a clear strategy for financial reserves.

64. The bank must have a clear strategy for financial provisions.

65. The bank must have a clear strategy for financial contingencies.

66. The bank must have a clear strategy for financial risks.

67. The bank must have a clear strategy for financial opportunities.

68. The bank must have a clear strategy for financial threats.

69. The bank must have a clear strategy for financial weaknesses.

70. The bank must have a clear strategy for financial strengths.

71. The bank must have a clear strategy for financial analysis.

72. The bank must have a clear strategy for financial evaluation.

73. The bank must have a clear strategy for financial assessment.

74. The bank must have a clear strategy for financial review.

75. The bank must have a clear strategy for financial monitoring.

76. The bank must have a clear strategy for financial supervision.

77. The bank must have a clear strategy for financial regulation.

78. The bank must have a clear strategy for financial legislation.

79. The bank must have a clear strategy for financial policy.

80. The bank must have a clear strategy for financial strategy.

81. The bank must have a clear strategy for financial vision.

82. The bank must have a clear strategy for financial mission.

83. The bank must have a clear strategy for financial values.

84. The bank must have a clear strategy for financial culture.

85. The bank must have a clear strategy for financial ethics.

86. The bank must have a clear strategy for financial morals.

87. The bank must have a clear strategy for financial principles.

88. The bank must have a clear strategy for financial standards.

89. The bank must have a clear strategy for financial norms.

90. The bank must have a clear strategy for financial rules.

91. The bank must have a clear strategy for financial guidelines.

92. The bank must have a clear strategy for financial procedures.

93. The bank must have a clear strategy for financial processes.

94. The bank must have a clear strategy for financial systems.

95. The bank must have a clear strategy for financial structures.

96. The bank must have a clear strategy for financial organizations.

97. The bank must have a clear strategy for financial institutions.

98. The bank must have a clear strategy for financial entities.

99. The bank must have a clear strategy for financial bodies.

100. The bank must have a clear strategy for financial authorities.