Regulatory Alerts2016-08-17
Added · Updated
Circular dated January 11, 2016 regarding the concentration of banks’ credit portfolios
The Central Bank of Egypt reduces the maximum exposure limit for a single client without related parties from 20% to 15% of the bank's capital base, and for a client with related parties from 25% to 20%. If the total credit facilities granted to the top 50 clients exceed 50% of the bank's credit portfolio, a risk weight of 200% applies if the ratio is between 50% and 70%, and 300% if it exceeds 70%. Banks are granted a three-year deadline to comply with the exposure limits and a one-year deadline to comply with the top 50 client concentration rule.