Regulatory Alerts2012-05-10
Controls for banks establishing money market funds
The letter, addressed to the Chairman of the Board of Directors, communicates the Egyptian Central Bank's role in ensuring proper conduct and financial safety standards among banks. It highlights the need for effective oversight of money market funds, as per Article 175 of the Executive Regulations of the Capital Market Law No. 95 of 1992, amended by the Minister of Investment's Decision No. 126 of 2008. The Central Bank's Board of Directors, in its session held on June 3, 2008, approved a set of controls for banks establishing money market funds, emphasizing the importance of compliance with relevant laws, decisions, and instructions. The letter also mentions the requirement to obtain the Central Bank's approval for any increase in the bank's contribution to the fund's capital and sets a maximum limit for the bank's contribution.