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2026-04-05

Added 2026-04-05 · Updated 2026-09-12

Circular dated April 2, 2026 amending the definition of financial companies in which banks are allowed to contribute without a maximum limit

The Central Bank's Board of Directors amended item (3) of the circular dated August 24, 2004, to update the definition of financial companies whose shares banks may own without a maximum limit. The revised definition adds fintech startups engaged in non-banking financial activities, money transfer companies, consumer finance companies, and companies financing medium, small, and micro enterprises to the existing list. This amendment applies to banks and replaces the previous enumeration of eligible financial entities.

Egypt

Central Bank of Egypt

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Cairo, April 2, 2026.

Mr. / Chairman of the Board of Directors, Bank,

Greetings and after,

Referring to the circular issued on August 24, 2004, which prohibited banks from owning shares of non-financial companies exceeding 40% of the company's issued capital, and allowed banks to own shares of financial companies without a maximum limit, and which included a definition of financial companies, as well as the circular issued on August 6, 2020, regarding the addition of payment service providers and payment system operators to the definition of financial companies whose shares banks can own without a maximum limit,

And in light of current market developments and the emergence of several companies operating in new financial activities, the Central Bank's Board of Directors, in its meeting held on March 31, 2026, decided to amend item (3) of the circular dated August 24, 2004, mentioned above, to become as follows:

Financial companies mean:

Banks.
Exchange companies.
Companies operating in the field of securities in accordance with Article (27) of Law No. 95 of 1992 issuing the Capital Market Law. Companies engaged in real estate finance activities. Securitization companies. Companies engaged in financial leasing activities. Companies operating in factoring activities. Companies engaged in insurance activities. Payment service providers. Payment system operators. Money transfer companies. Fintech startups engaged in non-banking financial activities. Companies engaged in consumer finance activities. Companies engaged in financing medium, small, and micro enterprises.

Please be informed and advised to take the necessary actions to implement the aforementioned decision.

Please accept our highest respect and appreciation,

Tarek El-Khouly

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Source: Central Bank of Egypt — original document

Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works