Rules Regulating the Credit Registration System at the Central Bank

Rules Regulating the Credit Registration System at the Central Bank of Egypt

First: Documents and Declarations Required from Customers When Applying for Financing or Credit Facilities Second: Reviewing Aggregated Data on Customers and Their Related Parties Before Providing Financing or Credit Facilities Third: Entering Data of New Customers into the Central System Fourth: Disclosure of Related Parties of Customers Applying for Financing or Credit Facilities Fifth: Rules and Procedures for Sending Data (Monthly Declaration) on the Status of Customers Receiving Financing or Credit Facilities Sixth: Reports Obtained by Banks from the Central Bank's Information Database Seventh: Notification of Irregular Customers Eighth: Negative Lists of Customers Receiving Loans for Consumer Purposes Ninth: Service Pricing Tenth: Penalties Applied in Case of Violation

Appendices:

Statement of Related Parties of Customers Receiving Financing or Credit Facilities (Form No. 1)
Monthly Declarations on Credit Balances and Facilities (Form No. 2)
Statement on the Status of an Irregular Credit Customer (Form No. 3)
Monthly Declarations on Credit Balances and Facilities (Form No. 4)
Concepts and Basis for Classifying Credit Items and Types of Collateral (Form No. 5)
Notification Form (Form No. 6)

First: Documents and Declarations Required from Customers When Applying for Financing or Credit Facilities

Article 62 of the Law stipulates that anyone seeking to obtain financing or credit facilities from banks, among natural persons and legal entities, must disclose in the application the owners of the establishment, owners of shares, or percentage of participation in closed joint-stock companies, and the degree of kinship between them, if any, as well as debt balances with other banks at the time of submitting the application. The application shall not be considered unless this data and declaration of its correctness are provided.

Banks, financial leasing companies, and real estate financing companies must require their customers applying for financing or credit facilities to submit the following documents and declarations:

A signed declaration by the customer regarding the banks, financial leasing companies, and real estate financing companies with which they deal, and the volume of their dealings with each, specifying the different names used in dealings with each. The customer must be aware that omitting some of this information or declaring incorrect data will result in being denied the requested facility.
A declaration by the customer disclosing their related parties.
Personal identification documents for customers, their related parties, guarantors, and joint partners, as follows:
(a) A copy of the National ID card for Egyptian individuals, and a passport and residence permit for foreigners.
(b) A recent extract from the Commercial Register for the company's headquarters, provided that its date matches the date of submitting the application for financing or credit facilities, or its increase or renewal. (c) A copy of the Official Gazette announcing the establishment decision for all companies, and the transfer of affiliation or name change for government entities, public sector units, and public utility companies. (d) A recent extract from the Commercial Register for branches of foreign companies, provided that its date matches the date of submitting the application for financing or credit facilities, or a license to practice work in Egypt for foreign companies. (e) Documents proving capacity and establishment.

Second: Reviewing Aggregated Data on Customers and Their Related Parties Before Providing Financing or Credit Facilities

Paragraph 2 of Article 67 of the Law stipulates that each bank must review the aggregated statement regarding any customer and their related parties before providing financing or credit facilities, and may request an extract of this statement, according to the conditions and procedures issued by a decision of the Board of Directors of the Central Bank.

The last paragraph of Article 33 of the Executive Regulations of the Law stipulates that the Central Bank prepares aggregated data for what each customer and their related parties receive, and banks are committed to reviewing this data before and when inquiring about the customer.

Banks, financial leasing companies, and real estate financing companies shall review the aggregated statement regarding the customer and their related parties as follows:

Access is through the network connecting banks to the Central Bank's information system.
Access is known by a person whose name and job title are notified to the Central Bank.
Access is based on a request submitted by the customer to obtain financing or credit facilities. Banks must review before deciding to provide credit, or when increasing, renewing, or modifying its terms.
Access is based on the personal identification documents of the customer.
Each bank must, before providing financing or credit facilities, or increasing, renewing, or modifying their terms, review the aggregated statement regarding the customer, their related parties, and joint partners, as well as each guarantor before accepting their guarantee, whether on the date of providing the financing or credit facility or on any subsequent date. Banks have the right to review aggregated data regarding customers applying for credit facilities less than the declaration threshold.
Financial leasing companies and real estate financing companies have the right to review the aggregated statement regarding the customer and their related parties.
The aggregated statement regarding the customer reviewed before approving credit facilities must be the latest statement available at the Central Bank's aggregated information database.
The access statement is a mandatory document that the granting authority must review regarding the declaration of providing credit, increasing it, renewing it, or modifying its terms, with the necessity of keeping the statement obtained for reference in follow-up and internal control.
Banks must adhere to the principles and determinants of research when reviewing aggregated data on customers.
Banks must refer to the General Administration of Banking Credit Risk Aggregation when there are inquiries when reviewing any customer or when it is impossible to obtain an aggregated statement when searching for it, on the Access Form prepared for this purpose, No. 1 (attached), along with the personal identification documents of each customer.

Third: Entering Data of New Customers into the Central System

Paragraph (a) of Article 33 of the Executive Regulations of the Law stipulates that banks, financial leasing companies, and real estate financing companies are committed to electronically entering the data of each customer and their related parties into the system, through a person whose name and job title are notified to the Central Bank.

Entering data of new customers into the system is as follows:

Banks, financial leasing companies, and real estate financing companies must enter data of new customers, their guarantors, and joint partners through the Central Bank's information network immediately in the month in which the financing or credit facility was provided, to obtain the symbolic numbers for these customers immediately after registering all their data.
Entering data of new customers and approving it is known by one or more persons whose name and job title are notified to the Central Bank.
Names of new customers, guarantors, and joint partners and their personal data must be entered from recent personal identification documents confirming the correctness of this data.
Banks must ensure the completeness of the data they enter and put in place the necessary system to review and approve the entry.
Banks, financial leasing companies, and real estate financing companies must notify the General Administration of Banking Credit Risk Aggregation at a time synchronized with the time of entering data of new customers of the following:
(a) New customer/guarantor/joint partner data card (natural or legal person) on the form prepared for this purpose, No. 2 (attached), containing the following data:
- Date: Month / Year
- Bank/Company Data: Bank/Company Name
- Branch Name
- Governorate
- Customer Data:
  - Natural Person: Customer Name - Date of Birth - Address - Profession - ID Number, Type, and Date of Issue (National ID for Egyptians, Passport and Residence Permit for foreigners).
  - Legal Person: Customer Name - Address - Legal Form - Activities - Commercial Register Number and Date and Place of Issue - Official Gazette Number and Date or Egyptian Facts.
- Date of starting dealings with the bank.
- Names of guarantors and date of signing the guarantee.
- Names of joint partners.
  (b) Copies of personal identification documents confirming the correctness of customer data, guarantors, and joint partners.

The General Administration of Banking Credit Risk Aggregation verifies the accuracy of the data entered by banks and companies and follows up on obtaining symbolic numbers for new customers through the Central Bank's information network.

Banks, financial leasing companies, and real estate financing companies must continuously update all data of customers, guarantors, and joint partners from the documents confirming this, and commit to notifying the General Administration of Banking Credit Risk Aggregation of any modifications to this data immediately, with documents confirming the modification, especially:
- Modification of customer name or address, or change of activity or legal form.
- Exit of a joint partner.
- Expiration of guarantee.
- Merger.
- Death of the customer.
Banks, financial leasing companies, and real estate financing companies must, when opening a new branch, apply to the General Administration of Banking Credit Risk Aggregation to obtain the symbolic number designated for this purpose through the Central Bank's information network.

Fourth: Disclosure of Related Parties of Customers Applying for Financing or Credit Facilities

Each bank must, when providing financing or credit facilities, obtain from the customer a declaration disclosing their related parties according to the concept in the Central Bank, Banking System, and Currency Law No. 88 of 2003, as follows:
(a) Related parties of the natural person customer, including relatives up to the fourth degree, sole establishments owned by them, their guarantors, and guarantors.
(b) Related parties of the legal person customer, including:
- Joint partners in personal companies.
- Chairman and members of the board of directors of the joint-stock company, and major shareholders in it (each owning individually and/or with their related parties 10% or more of the issued capital of the company or any percentage leading to actual control over it), whether natural or legal persons.
  Actual control over a natural or legal person means owning any percentage that enables them to appoint the majority of the board of directors of the company or control in any manner the decisions issued by the board of directors of the company or control the decisions issued by the General Assembly. (c) Any other legal person if under the actual control of the same natural or legal persons (branches - subsidiary companies).
Banks must notify the General Administration of Banking Credit Risk Aggregation of data regarding related parties of the customer from the customer's declaration and banking inquiry data, on the form prepared for this purpose, No. 3 (attached), supported by confirming documents.
Banks must notify the General Administration of Banking Credit Risk Aggregation of any developments or modifications that occur in the future regarding data of related parties of the customer, supported by confirming documents.

Fifth: Rules and Procedures for Sending Data (Monthly Declaration) on the Status of Customers Receiving Financing or Credit Facilities

The last paragraph of Article 65 of the Law stipulates that each bank must notify the Central Bank of the status of each customer receiving financing or credit facilities. Paragraph (b) of Article 33 of the Executive Regulations of the Law stipulates that banks, financial leasing companies, and real estate financing companies are committed to sending data through the Central Bank's information network in the deadlines specified by a decision of the Governor of the Central Bank.

Data (declaration) on the status of customers receiving financing or credit facilities is sent through the Central Bank's information network as follows:

Data is sent monthly by a deadline not exceeding the fifth day of the month following the month in which approval was given to provide the financing or credit facility or the month for which this data is prepared.
Declaration is made for each customer provided with financing or credit facilities amounting to 30,000 EGP or more, whether natural or legal person.
Declaration is made for each Egyptian customer, and the foreigner holding a residence permit in Egypt.
Declaration is made for the individual natural customer and each of their sole establishments separately with an independent declaration.
Declaration is made for each joint partner or guarantor or partner in a joint account in their capacity as a guarantor for the financing and credit facilities provided, and the value of their commitment is entered in the guarantees item within the facilities granted to the customer.
If the joint partner or guarantor has more than one guarantee at the same branch, declaration is made for each joint partner or guarantor with an independent declaration, and their guarantees or guaranties at the same branch are specified.
Declaration is made for customers of each branch separately.
In case the customer deals with a balance of facilities less than the declaration threshold with more than one branch in the same bank and the total of their facilities in the bank reaches the declaration threshold, declaration must be made for them.
In case of joint loans, each bank declares its share in the financing or credit facilities provided to the customer.
Declaration continues for the company under liquidation with the addition of the phrase "under liquidation" after the company name.
In case of the customer's death, declaration continues for them with the addition of the word "deceased" after the customer's name.
In case of providing financing or credit facilities to any units of the government, public sector, or public utility for the purpose of providing advances or purchasing durable goods for workers in any of them, declaration is made for the unit preceded by the word "workers".
Declaration is based on final balances at the end of each month for each customer receiving financing or credit facilities.
Declaration is made for debit balances in credit accounts when they reach the declaration threshold at the end of the month in which these balances appeared.
The basis of declaration is the amount approved, regardless of the amount used from it, provided that declaration continues even if the approved limit for the customer falls below the declaration threshold until the debt is fully settled.
Declaration amounts are in Egyptian Pounds and rounded to the nearest thousand pounds.
Banks, financial leasing companies, and real estate financing companies send data (declaration) monthly electronically through the Central Bank's information network on the form prepared for this purpose, No. 4 (attached), containing the following data:
(a) Bank/Company name and number - Branch name and number - Governorate name and number.
(b) Month date.
(c) Customer name and symbolic number - Address - Profession/Activity - Legal Form.
(d) Value of the approved limit for financing and credit facilities provided to the customer and the amount used from it at the end of each month, distributed according to the types of financing and credit facilities and types of collateral explained in the statement below.
The following are exempt from declaration:
(a) Declaration on credit facilities provided to banks.
(b) Guarantors whose guarantees are limited to providing tangible collateral or cash deposits or any type of savings accounts or treasury bills or government bonds with the same value as their guarantees.
Declaration data must be filled with complete accuracy, and banks, financial leasing companies, and real estate financing companies are fully responsible for the data sent.
Banks, financial leasing companies, and real estate financing companies must take all necessary measures to ensure the security of data sent through the Central Bank's information network.
Banks, financial leasing companies, and real estate financing companies must, immediately after sending customer data electronically through the Central Bank's information network, notify the Administration of the following:
(a) A statement showing the names of customers not declared in the declaration month compared to the previous month, with reasons for non-declaration.
(b) Correction of errors through the screen designated for this purpose.
For the purpose of matching financing and credit facility balances with the monthly declarations sent through the Central Bank's information network with their counterpart in the monthly financial position items of banks, each bank must notify the General Administration of Banking Credit Risk Aggregation of a monthly comparative statement of financing and credit facility items from the declarations with their counterpart in the bank's financial position, showing the reasons for differences, if any.

Appendix: Concepts and Basis for Classifying Credit Items and Types of Collateral

(Attached statement on concepts and basis for classifying credit items and types of collateral - Form No. 5)

Main Item No. (1): Credit Facilities	Sub-item Name	Number	Sub-item Name
Without tangible collateral			With collateral of commercial papers
With collateral of agricultural crops	4	With collateral of financial papers	5
With collateral of real estate mortgage		With collateral of other goods
With various collateral	>	With collateral of mortgage of premises and machines	V
Discount of local and foreign bills	4	With collateral of deposits
For purchasing cars for personal use	2	Credit Cards	11
Personal loans to cover needs and purchase goods or services	13
Real estate loans for personal housing (acquisition or renewal of residential units)
Financing from real estate financing companies		Financing from financial leasing companies

Main Item No. (5): Guarantees	Sub-item Name	Item Number	Sub-item Name	Item Number
	2

Main Item No. (6): Total Facilities (1 + 2 + 3)	Sub-item Name	Item Number	Sub-item Name	Item Number
Total of credit facility items	97

Main Item No. (3): Contingent Liabilities	Sub-item Name	Item Number	Sub-item Name	Item Number
Letters of guarantee (uncovered portion in cash or deposits and what is akin to them)	r	Documentary credits (uncovered portion in cash or deposits and what is akin to them)	11
Other commitments	1	Accepted bills	13

Main Item No. (2): Marginal Returns	Sub-item Name	Item Number	Sub-item Name	Item Number
Marginal returns	1

Sixth: Reports Obtained by Banks from the Central Bank's Information Database

Banks extract the following reports through the Central Bank's information network:

Aggregated data on the status of the bank's customers.
Statement of names of customers and their related parties.
Symbolic numbers of new customers dealing with the bank.
Basic data of the bank's customers.
Status of the bank's customers regarding the regularity of their payments to banks providing financing and credit facilities and regarding procedures taken concerning their debts.
Statement of total balances of financing and credit facilities provided to its customers compared to the total balances provided by the group of banks to which it belongs, distributed as follows:
- Types of credit facilities (approved and used).
- Economic activity.
- Customers' place of residence.
- Legal forms.
- Distribution of categories.
- Statement of the bank's customers.

Seventh: Notification of Irregular Customers

Banks must notify the General Administration of Banking Credit Risk Aggregation of the names of customers, their guarantors, and joint partners who have stopped payments and regarding whom any of the following procedures have been taken, on the notification form prepared for this purpose, No. 6 (attached), within thirty days from the date of taking the procedure:

Customers regarding whom judicial procedures have been taken by the bank:
(a) Filing judicial lawsuits: Banks must state the type of lawsuit and the date of filing.
(b) Filing misdemeanors: Banks must state the type of misdemeanor, the name of the person against whom the misdemeanor was filed, and the date of registration of the misdemeanor.
(c) Notifying the Public Prosecution or the Socialist Public Prosecution Agency, and the date of notifying the Public Prosecution or the Socialist Public Prosecution Agency is considered.
(d) Applying for a judicial precautionary seizure order or an execution order, and the date of applying for the seizure or execution order is considered.
(e) Registering a dispute notice on ownership, and the date of registering the dispute notice on ownership is considered.
Customers regarding whom judicial procedures have been taken by external parties:
(a) Seizure of their assets, and the date of notifying banks of the decision issued in this regard is considered.
(b) Issuance of judgments for liquidation of affairs, and the date of issuing judicial judgments for liquidation is considered.
(c) Issuance of judgments declaring bankruptcy against a customer, and the date of publishing the bankruptcy declaration judgment in any daily newspaper is considered. It is noted that in case of issuing a bankruptcy declaration judgment against one of the partnership companies or simple commandite companies, notification must be made for the company and the names of the joint partners in it, as the bankruptcy of the company necessitates the bankruptcy of all joint partners in it. However, in case of issuing a bankruptcy declaration judgment against one of the joint partners, notification is not made for the company. Except for the public sector and public utility companies.
Lawsuits for composition in case of bankruptcy:
In case any customer files a lawsuit for composition in case of bankruptcy, banks must notify about these customers after the court ratifies the composition in case of bankruptcy, and the date of publishing the summary of the judgment in any daily newspaper is considered.
Lawsuits filed by customers:
Notification must be made for customers, their guarantors, and joint partners who have stopped payments and who file judicial lawsuits against the banks they deal with, specifying the type of lawsuit and the date of notifying the bank.
Amicable liquidation:
In case of agreeing on the liquidation of any company, banks must notify about this company, and the date of publishing the name of the liquidator and the agreement of partners on the method of liquidation in the Commercial Register and the Companies Journal is considered.
Settlement customers:
In case of signing an agreement between the bank and any of its customers regarding the method of settling the debt due to the bank (settlement or installment), banks must notify about these customers, their guarantors, and joint partners, provided that a decision is issued by the competent authority and the customer signs the agreement contract with the bank.
Customers whose debts have been written off without discharge of liability:
In case any customer stops payments and the bank writes off their debt without discharging liability, notification must be made for the customer, their guarantors, and joint partners, specifying the date of approval by the competent authority on writing off the debt without discharging liability.
Modification of customer status:
Banks must notify immediately of any modification to the status of their previously notified customers, specifying the type and date of procedures taken concerning their debt, on the same notification form mentioned above, especially in the following cases:
1. Taking any subsequent judicial procedure to the previously notified judicial procedure.
2. Taking any subsequent judicial procedure to writing off the debt without discharging liability.
3. Transfer from judicial procedures to settlements, in case of leaving mutual lawsuits between the two parties to be struck out or actually striking them out without renewal, or waiving, based on a settlement agreement between the bank and its customers.
4. Writing off the debt without discharging liability.
5. Transferring the customer's debt from one branch to another.
6. Transferring the customer's debt to another customer.
7. Issuance of a decision to lift the guardianship or considering the precaution or prohibition of disposal as non-existent.
8. Lifting judicial procedures, in case of leaving mutual lawsuits between the two parties to be struck out or actually striking them out without renewal, or waiving, based on actual payment of arrears regarding which judicial procedures were taken.
9. Bank's approval to lift the name of any joint partner in case of their exit from the company and settling their share of the debt.
10. Bank's approval to lift the name of any guarantor in case of requesting cancellation of their guarantee and settling their share of the debt.
11. Settling the debt within a settlement with discharge of the customer's liability.
12. Full settlement of the debt.

And banks must observe the following:

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