Instructions for opening small bank branches

Mr. / Chairman of the Board of Directors
Cairo, December 8, 2014
Bank

Greetings,

In accordance with the policy of the Central Bank and to meet the needs of banks and their desire to establish small agencies/branches, facilitating and encouraging expansion in providing retail banking services, thereby widening the scope of their activity and reaching the largest number of customers while diversifying social strata in the locations where these small agencies/branches will be located.

Based on the foregoing, the Board of Directors of the Central Bank of Egypt, in its meeting held on December 2, 2014, approved the following controls for opening small bank branches "Mini Branches", which banks must comply with when applying to the Central Bank (Supervision and Inspection Sector - Banking Affairs) to request opening small agencies/branches for them to perform specific banking services for their clients:

First: The activity of small agencies/branches is limited to the following:

• Withdrawal and deposit operations and currency exchange via ATMs.
• All banking operations for individuals, including opening accounts, granting loans, accepting deposits, etc.
• Receiving requests for various banking transactions and sending them to the relevant departments in the bank to complete their procedures.

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• Receiving installment sales requests for goods in agreement with distributors (according to their locations).
• Marketing and promotion activities for bank products.

Second: An amount of 5 million Egyptian pounds from the bank's basic capital is allocated for each small agency/branch inside Greater Cairo, 2 million Egyptian pounds outside Greater Cairo, except for Upper Egypt governorates, for which 1 million Egyptian pounds is allocated.

Third: Banks submit applications to open small agencies/branches to the Supervision and Inspection Sector (Banking Affairs) during the months of February/September of each year.

Fourth: The registration fee for the small agency/branch is seven thousand pounds according to Article 33 of Law No. 88 of 2003.

Fifth: Working hours for small agencies/branches are applied according to their locations and in accordance with the instructions issued by the Bank: The Central Bank of Egypt pursuant to the letter from the Supervision and Inspection Sector dated September 15, 2009, stating that it must be clearly announced to customers that these small agencies/branches are for providing retail banking services to individuals only.

Sixth: Compliance with the decision of the Board of Directors of the Central Bank in its meeting held on February 28, 2002, regarding the special security procedures for new banking units to conduct their activity.

Seventh: In addition to what was stated in clauses (first), (second): The guiding controls issued by the Board of Directors of the Central Bank in its meeting held on June 3, 2008, to approve requests for opening new bank branches must be observed when opening small agencies/branches.

Hesham Ramzy Abdel Hafez