Circular dated August 16, 2018 regarding the definition of companies and establishments owned or managed by women

Cairo: 16 August 2018

Dear Chairman of the Board of Directors,

Greetings,

In the context of the Central Bank of Egypt's interest in measuring financial inclusion levels in Egypt, the Central Bank deemed it necessary to build a comprehensive database for this purpose, including the reporting of micro, small, and medium-sized enterprises classified by gender. This requires issuing a unified definition of companies and establishments owned by women or managed by them, taking into account the definition issued by the Central Bank of Egypt for small and medium-sized enterprises pursuant to the Circular Letter dated 5 March 2017.

Accordingly, the Board of Directors of the Central Bank of Egypt, in its meeting held on 25 July 2018, decided the following:

1. For statistical purposes and to provide comprehensive and accurate data, companies and establishments owned by women or managed by them are defined as follows:
   a. According to ownership (capital): One or more women owning at least 51% of the company's capital; or b. According to ownership (capital) and management: One or more women owning at least 20% of the company's capital, and one woman holding at least the position of Executive Director or Deputy.

2. Banks' databases shall be updated to reflect the definition mentioned in item (1) as follows:
   a. For new accounts: Immediately. b. For existing accounts: Gradually, as follows:
   i. For credit facilities customers: The update shall be made upon the periodic renewal of those facilities.
   ii. For deposit and other account customers: The update shall be made within a maximum period of five years, in accordance with the Customer Identification Rules for Banks issued by the Anti-Money Laundering Unit on 14 April 2011.

3. The above applies to all companies and establishments regardless of their size.

Please be so kind as to notify the necessary parties to implement the aforementioned decision. Banks are also required to report companies and establishments owned by women or managed by them according to the above definition to the Egyptian Credit Bureau and the Central Bank's credit registration system, in accordance with the applicable rules.

Accept our highest regards,

Gamal Naguib