Chapter One: Concepts of Financial Position Data Items and Basis of Their Preparation

First: General Rules

1. Banks shall submit the financial position to the Central Bank of Egypt on a monthly basis, along with asset analysis tables for assets and liabilities by business sectors and economic activity sectors, and other data prepared for this purpose, within a period not exceeding the eighth day of the month following the date of the financial position. These data shall be submitted after being audited through the bank's financial management department, so that their balances match what is recorded in the bank's records. Each bank shall submit the name of the person responsible for financial management and that of their deputy in case of absence, along with their telephone numbers, to the Supervision and Control Sector (Office Supervision), so that they can be contacted if necessary. The data shall be submitted in full and within the specified deadlines, and amendment procedures after submission shall be avoided. Non-compliance with this shall expose the violating bank to the procedures stipulated in Article 135 of Law No. 88 of 2003 Issuing the Central Bank, the Banking System and Currency Law, and as stated in the decision of the Board of Directors of the Central Bank of Egypt in its meeting held on June 16, 2009, regarding the modification of financial penalties imposed on banks violating the rules governing the credit registration system at the Central Bank, and the amount for banks dated July 15, 2009.

2. The preparation of data shall adhere to the rules for the preparation and presentation of banks' financial statements and the recognition and measurement bases approved by the Board of Directors of the Central Bank of Egypt in its meeting held on December 16, 2008.

3. Two of the managers responsible for the bank shall sign the financial position, tables, and data referred to. They may sign individually. A single signature may suffice if the signatory is authorized by the bank.

4. The financial position shall include detailed data for branches operating in Egypt. As for data for branches abroad, their total debit balance shall appear under the item "Balances with Banks," and their total credit balance shall appear under the item "Balances Payable to Banks."

5. In the case of large amounts under settlement or data that has not yet taken its final form, such that it affects the relevance of the financial position (as in the case of preparing annual financial statements), the bank shall submit interim financial positions until the necessary adjustments are made, after which the Central Bank of Egypt shall be submitted with final financial positions for the end of the months for which interim positions were sent.

6. Netting of internal accounts between branches in Egypt shall be carried out. The netting balance shall appear under "Other Assets" if it is a debit balance, or under "Other Liabilities" if it is a credit balance (local currency / foreign currencies).

7. Only assets owned by the bank or its branch shall appear in the assets, and liabilities shall be limited to those owed by the bank. Contingent liabilities shall appear outside the financial position, and their total shall be independent of the total of assets, liabilities, and equity.

8. Financial position balances shall be classified based on the remaining period until maturity of those balances at the date of the financial position (discounted commercial papers, loans and credit facilities granted to customers, deposits other than savings systems that are classified according to the contract term) with the automatic rescheduling of maturity dates when preparing subsequent financial positions.

9. Banks shall submit to the Central Bank of Egypt monthly a separate memorandum attached to the financial position, containing specific and comprehensive explanations for significant changes occurring in the bank's financial position data compared to the data of the previous month.

10. Within the framework of the foreign exchange market mechanism, banks shall revalue foreign currency balances of a cash nature in their monthly financial positions and interim and annual balance sheets according to the following:

    • Valuation of balances in US Dollars at the end of each month based on the weighted average of transactions in US Dollars during the entire day announced by the Foreign Exchange Issuing Room on the Reuters screen, page 1 FEMF.
    • The exchange rates of other currencies against the Egyptian Pound shall be determined through Rate Cross between the US Dollar and this currency.

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1. Supervision and Control Sector Letter No. 226 issued on April 11, 1976, and Circular Letter of the Supervision and Control Sector No. 243 issued on January 29, 1979.
2. Supervision and Control Sector Letters issued on June 3, 2008, and August 25, 2009.
3. Supervision and Control Sector Letter No. 73 issued on June 14, 2010.
4. Supervision and Control Sector Letter No. 350 issued on April 2, 2001.
5. Supervision and Control Sector Letter No. 275 issued on August 28, 1983.
6. Supervision and Control Sector Letter No. 352 issued on April 9, 2001.