Regulatory Alerts2021-02-22
Added · Updated
Circular dated February 22, 2021 regarding the use of alternative data for credit assessment through digital assessment models
The Central Bank of Egypt authorizes banks to provide financing to micro and small enterprises with annual sales of up to 20 million Egyptian pounds without audited financial statements, provided the assessment relies on digital behavioral scoring models using alternative data. Banks must restrict such financing to local currency, establish board-approved policies and models, ensure independent validation of the models, and submit quarterly reports on portfolio performance and non-performing loans to the regulator. The circular mandates prior notification to the Central Bank before implementing these models and requires periodic review of model inputs and performance indicators.