Circular dated March 23, 2016 regarding the maximum term for the chief executive officer in banks

Greetings,

In light of the efforts of the Central Bank of Egypt to keep pace with rapid changes in the banking sector, and its commitment to enriching and challenging the banking sector to achieve the large aspirations for economic development and investment, and since the process of job rotation is one of the most important methods and techniques of development, which is considered a challenge for competencies in the performance of supervisory, managerial and leadership operations, and to demonstrate their capabilities, and to prepare a second generation and push the second generation of cadres and new cadres in the institutions, we kindly ask you to be informed that the Board of Directors of the Central Bank of Egypt, in its meeting held on March 23, 2016, issued the following decision:

1. Banks issued by a Cabinet Resolution appointing the Chief Executive Officer: The maximum term of the Chief Executive Officer shall not exceed nine years (continuous or separate) within the framework of the decisions of the Prime Minister.

2. Private Sector Banks:

a. The maximum term of the Chief Executive Officer shall not exceed nine years (continuous or separate), and in the event that the Chief Executive Officer exceeds this term, they shall remain in office until the first General Assembly meeting of the bank approves the annual financial statements.

In the event that the Chief Executive Officer exceeds nine years on December 31, banks are granted a grace period until the General Assembly meeting approves the financial statements for the year 2015 for the following year 2016, subject to obtaining the approval of the Central Bank of Egypt.

3. Foreign Bank Branches:
The maximum term of the Chief Executive Officer shall not exceed nine years (continuous or separate), and in the event that the Chief Executive Officer exceeds this term, they shall remain in office until the annual financial statements are approved by the bank's auditor.

Please accept our highest respect,

Tarek Amer