Regulatory Alerts2026-07-01
Added · Updated
Circular Letter dated 1 July 2026 Regarding Controls on Banks' Investments in Corporate and Securitization Bonds
The Central Bank of Egypt issued a circular on 1 July 2026 establishing strict regulatory controls for banks investing in corporate and securitization bonds to ensure sector stability. The directive mandates that banks adopt internal policies with specific exposure limits, adhere to defined risk weights based on credit ratings, and conduct comprehensive risk assessments and ongoing monitoring of bond performance. Additionally, banks must verify compliance with debt-to-income ratios, obtain regulatory approvals from the Financial Regulatory Authority, and are granted a six-month period to align their operations with these new requirements.