Maximum Limits of Bank Investments with One Client, Associated Parties, and Related Parties

The Central Bank of Egypt sets maximum investment limits for banks at 20% of capital for a single client, 25% for a client and associated parties, and eight times capital for associated parties with exposures exceeding 10%. Banks must comply with these limits within a three-year transition period, with interim caps of 25% and 27% in the second and third years, and may apply for extensions or higher limits under specific credit policy conditions. Separate restrictions prohibit financing for major individual shareholders not on the board and limit exposures to major corporate shareholders based on shareholding percentage and capital base.

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Cairo, in:

Mr. Chairman of the Board of Management

Greetings,

I would like to refer to Article (56) of the Central Bank, Banking and Monetary Authority Law issued by Law No. (88) of 2003, which stipulates that the Board of Directors of the Central Bank shall establish rules for the supervision and oversight of banks and the controls related to their activities in accordance with the provisions of this Law, while observing international banking customs, including the maximum limits of investment with one client, parties associated with him, and parties associated with the bank.

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Lineage: In force

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Source: Central Bank of Egypt — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works