2017-02-27

A circular dated February 27, 2017 regarding the conditions that must be met to include interim profits/losses within the capital base of the capital adequacy standard.

In a letter dated February 27, 2017, the Chairman of the Board of a bank in Cairo, Egypt, addresses the instructions issued to banks on December 24, 2012, regarding the minimum standard for capital adequacy. The letter refers to the conditions required for including quarterly net profits or losses in the additional Tier 1 capital of the bank's capital base. The Central Bank of Egypt's Board of Directors has decided to amend the relevant paragraph of the 2012 instructions, allowing banks to include net profits after a limited review by the auditor of the bank's financial statements. Losses, on the other hand, are to be deducted without any conditions.

Egypt

Central Bank of Egypt

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