Regulatory AlertsEgypt: lending & credit regulation
RegulatedEgypt lending: CBE regulates banks; FRA licenses non-bank consumer/SME/microfinance
- Lead regulator
- Central Bank of Egypt (CBE) and Financial Regulatory Authority (FRA)
- Also involved
- CBE (Credit Bureau registration) · NTRA (telecom/data)
- Core law
- Central Bank Law No. 194 of 2020
- Entry capital
- EGP 50m (Consumer Finance Company)
- Approval timeline
- 3-6 months for FRA licensing
- Customer assets
- Segregated accounts required for CFCs
- Data protection
- PDPL 2020 · PDRA
- Sandbox
- No
Lending is strictly bifurcated. The CBE supervises banks and mortgage companies, enforcing credit registry rules and sectoral initiatives. The FRA licenses and supervises non-bank entities, including Consumer Finance Companies (CFCs), SME financing entities, and microfinance providers. Non-bank lenders must register with the CBE Credit Bureau to operate legally.
Which licence do you need?
| Your activity | Requirement | Capital | Timeline | Authority |
|---|---|---|---|---|
| Consumer lending | LicenceConsumer Finance Company License[1] Must register with CBE Credit Bureau; subject to responsible pricing rules. | EGP 50m | 3-6 months | FRA |
| SME / commercial lending | LicenceSME Financing Entity License[1][2] Subject to mandatory responsible pricing and disclosure guidelines. | EGP 50m | 3-6 months | FRA |
| Microfinance | LicenceMicrofinance Entity License[2][3] Applies to NGOs/Associations; strict customer protection rules apply. | EGP 50m | 3-6 months | FRA |
| Buy-now-pay-later | Uncertainverify with regulator No specific BNPL regime; likely falls under CFC or general payment rules. | — | — | — |
| P2P lending platform | Prohibited[4] Unlicensed lending is prohibited; no P2P license category exists. | — | — | CBE |
| Credit bureau / scoring | LicenceCredit Rating/Inquiry Company License[5] Entities must be licensed to provide credit inquiry and rating services. | — | — | FRA |
| Debt collection | Uncertainverify with regulator No specific collections license; likely regulated under general commercial law. | — | — | — |
New — what changed recently
- 2026-04-07CBE Circular on Non-Bank Credit Reporting — Mandates banks to verify non-bank lenders' registration with CBE and Credit Bureau before granting facilities.
- 2025-03-26CBE Credit Registry Update — Updated rules for collecting and sharing customer credit data in the central registry.
- 2024-07-01CBE SME IFRS 9 Phase-out — Phased out temporary waiver for SMEs regarding IFRS 9 non-performing loan treatment.
- 2023-01-01FRA Decision No. 81 of 2023 — Established specific regulatory controls for consumer finance companies granting prepaid cash financing.
Market-entry checklist
- 1Secure FRA LicenseObtain license from FRA as a Consumer Finance, SME, or Microfinance entity.
- 2Meet Capital RequirementDeposit minimum EGP 50m statutory capital for the chosen entity type.
- 3Register with CBE BureauRegister with the Central Bank of Egypt Credit Bureau to report and query credit data.
- 4Implement Responsible PricingAdopt FRA-mandated transparent pricing and disclosure policies for all loans.
- 5Segregate Customer FundsEstablish segregated bank accounts for customer funds as required by FRA rules.
Sources
- Board of Directors Resolution No. 20 of 2022 on Responsible Pricing Guidelines for SME and Microfinance
- Circular Letter No. 7 of 2022 on Protecting Clients from Negative Practices in Fund Disbursement · 2022-12-29
- Board of Trustees Decision No. (1) of 2021 Amending Decisions No. (1) of 2015 and No. (4) of 2020 Regarding Licensing Conditions for Associations and NGOs in Microfinance and SME Financing · 2021-12-16
- Circular dated April 6, 2026 regarding ensuring that non-bank credit granting bo · 2026-04-07
- Circular dated January 18, 2024 regarding the extension of mandatory credit portfolio ratios for SMEs · 2024-01-18