Decision of the Board of Directors of the Authority No. 82 of 2023

Egyptian Gazette – Issue 91, Supplement (A) on April 19, 2023

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General Authority for Financial Supervision
Decision of the Board of Directors of the Authority No. 82 of 2023 Dated 12/4/2023 Amending Decision of the Board of Directors of the Authority No. 101 of 2020 Regarding the Financial Solvency Standards for Companies Operating in Consumer Financing Activities

The Board of Directors of the General Authority for Financial Supervision Having reviewed Law No. 10 of 2009 regulating supervision over non-banking financial markets and instruments; and Law No. 18 of 2020 regulating consumer financing activities; and Decision of the Board of Directors of the Authority No. 101 of 2020 regarding the financial solvency standards for companies operating in consumer financing activities; and Decision of the Board of Directors of the Authority No. 81 of 2023 regarding the controls for granting cash financing by consumer financing companies; and after approval by the Board of Directors of the Authority in its meeting held on 12/4/2023; has decided:

(Article One)
The table for calculating risk-weighted assets, included in Item (Second: Risk-weighted assets "Solvency Ratio Denominator") of Article (1) of the financial solvency standards for companies operating in consumer financing activities issued by Decision of the Board of Directors of the Authority No. 101 of 2020, referenced above, is hereby replaced with the following table:

Financial Position Items	Risk Weights
Cash and cash equivalents	0%
Government securities (Treasury bills – Treasury bonds)	0%
Deposits with banks in local currency	0%

Egyptian Gazette – Issue 91, Supplement (A) on April 19, 2023 12

Financial Position Items	Risk Weights
Financial investments in money market fund instruments	0%
Regular financing (financing portfolio)	100%
Cash financing customers for consumer purposes (Regular and provided with documents proving expenditure for the designated purpose)	100%
Cash financing customers for consumer purposes (Regular and has not provided documents proving expenditure for the designated purpose)	150%
Financial investments – Shares	100%
Investments in affiliated or subsidiary companies	100%
Intangible assets	100%
Customers (outstanding balances) – Delayed more than 30 days – 90 days	150%
Net irregular financing (defaulted for more than 90 days after deducting specific provisions)	150%
Cash financing customers for consumer purposes (Irregular – delayed more than 30 days)	200%
Deferred tax assets	150%
Net fixed assets (after depreciation)	100%
Other assets	100%

(Article Two)
This Decision shall be published in the Egyptian Gazette and on the Authority’s website, and shall take effect from the day following its issuance date.

Chairman of the Board of Directors
General Authority for Financial Supervision
Dr. Mohamed Farid Saleh