Egypt: lending & credit regulation

Regulated

Egypt lending regulated under CBE Law 194/2020; FRA oversees non-bank credit

Lead regulator:: Central Bank of Egypt (CBE)
Key law:: Central Bank Law No. 194 of 2020
Last updated:: 2026-07-12

The Central Bank of Egypt (CBE) serves as the primary supervisor for banking credit, enforcing strict controls on creditworthiness, non-performing loan classification, and sector-specific lending initiatives. The CBE mandates that all credit providers, including non-bank entities, register with the Egyptian Credit Bureau to ensure comprehensive debt reporting.

The Financial Regulatory Authority (FRA) regulates non-bank credit granting bodies, such as consumer finance companies and microfinance institutions, under the same Central Bank Law. The FRA enforces responsible pricing, licensing, and consumer protection standards for these entities.

Recent regulatory direction emphasizes the integration of alternative data for SME credit assessment, the phase-out of temporary NPL waivers for SMEs, and the prohibition of credit facilities for financing capital increases or dividend distributions.

Who regulates

Central Bank of Egypt (CBE)
Primary supervisor for banks and general credit controls
^[1][2][3][4]
Financial Regulatory Authority (FRA)
Supervisor for non-bank credit providers, consumer finance, and microfinance
^[5][6][7]

Core laws & rules

Central Bank Law No. 194 of 2020 (2020)
Establishes the regulatory framework for credit registration, reporting obligations for non-bank credit providers, and the powers of the CBE and FRA.
^[5]
CBE Regulation Book 4.1 - Controls For Granting Credit (2022)
Outlines general guidelines for granting credit, creditworthiness assessment, and microfinance controls.
^[8][9]

Licensing & registration

Banking Credit
Banks must obtain CBE authorization to grant credit facilities and adhere to strict internal policies and exposure limits.
^[1]
Non-Bank Credit / Consumer Finance
Non-bank credit providers must be licensed by the FRA and register with the CBE and Egyptian Credit Bureau.
^[3][6]

Restrictions & warnings

Banks are prohibited from granting credit facilities for financing capital increases or dividend distributions.
^[2]
Non-bank credit providers must declare their clients' indebtedness to the CBE and Egyptian Credit Bureau; failure to regularize reporting status restricts their ability to obtain bank financing.
^[3]
Licensed microfinance and SME financing entities must adhere to responsible pricing guidelines and verify full repayment before granting new financing to prevent debt splitting.
^[7][10]

Direction of travel

The CBE is phasing out temporary NPL waivers for SMEs in line with IFRS 9, aiming to unify asset quality practices.
^[11]
Regulators are encouraging the use of alternative data and digital assessment models for credit scoring, particularly for micro and small enterprises.
^[12]

Sources

Email alerts for Egypt updates

New circulars, rules and guidance — a digest in your inbox, same day.

This guide is compiled automatically from 12 primary-source documents published by Egypt's regulators, reviewed by RegAlert, and refreshed monthly (last updated 2026-07-12). It is not legal advice — always confirm requirements with the regulator or local counsel before acting.