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2026-04-02

Added 2026-04-02 · 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 of Egypt amends item (3) of the circular dated August 4, 2004 to update the definition of financial companies in which banks may own shares without a maximum limit. The revised definition includes banks, exchange companies, securities companies, real estate finance companies, securitization companies, financial leasing companies, factoring companies, insurance companies, payment service providers, payment system operators, money transfer companies, fintech startups engaged in non-banking financial activities, consumer finance companies, and companies financing small, medium, and micro enterprises.

Egypt

Central Bank of Egypt

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Cairo, April 2, 2026

Mr. / Chairman of the Board of Directors, Bank

Greetings, and thereafter,

Referring to the circular issued on August 4, 2004, which prohibited banks from owning shares in non-financial companies exceeding 40% of the company's issued capital, and allowed banks to own shares in 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 that banks can own shares in without a maximum limit, and in view of current market developments and the emergence of a number of companies operating in new financial activities, the Board of Directors of the Central Bank, in its meeting held on March 31, 2026, decided to amend item (3) of the circular dated August 4, 2004, mentioned above, to be as follows:

Financial companies are defined as:

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

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

Please accept our highest respect and appreciation,

Tarek El Kholy

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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