Regulatory Alerts2006-03-27
Added · Updated
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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