Regulatory Alerts2019-05-26
Added · Updated
Circular dated May 26, 2019 regarding encouraging banks to invest in targeted investment funds for small emerging companies
The Central Bank of Egypt amends the requirement for banks to allocate at least 20% of their credit portfolio to micro, small, and medium enterprises by including bank contributions to the capital of targeted investment funds for small emerging companies within this quota. Banks investing in these funds must ensure their total investment does not exceed 10% of their core capital, hold no more than 50% of a fund's capital, and meet specific capital adequacy, leverage, and regulatory licensing standards. These provisions apply to investments made on or after the date of the circular.
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