Regulatory Alerts2019-10-15
Added · Updated
Circular dated October 13, 2019 regarding regulatory controls for microfinance
The Central Bank of Egypt mandates that banks granting credit facilities to licensed microfinance companies or associations must submit monthly reports on authorized and used credit limits to the Egyptian Credit Bureau (Score-I). Banks are required to obtain commitments from these entities to verify that no client holds more than three loans from three institutions, ensure these entities are excluded from the mandatory 20% portfolio ratio, and secure a letter from the Financial Regulatory Authority confirming compliance and absence of violations. Additionally, microfinance entities must report all client data and credit behavior to Score-I, maintain a financial leverage ratio not exceeding ten times, adhere to maximum lending limits under Law 141 of 2014, and face restrictions on new lending if violations are found until corrected by the regulator.