The House of Representatives approved the new banking law that gives the CBE more independence and allows it to set new measures that control e-payment, fintech and cryptocurrencies.
The newly approved law also strengthens data protection and consumer privacy.
The new law is set to achieve a number of goals, including ensuring that Egypt’s banking system is keeping pace with international standards of best practice and norms, as well as legal systems for the corresponding regulatory authorities worldwide.
It also aims to develop the local banking system’s performance whilst supporting its competitive capabilities.
This would ensure that Egypt’s banks gain a competitive edge internationally, and achieve the state’s aspirations towards development and economic progress.
The new banking act would:
- Introduce a set measures to regulate licensing e-payment and fintech businesses and explicitly authorize the CBE to regulate cryptocurrencies;
- Update licensing and ownership regulations, with the inclusion of a stipulation that no one individual or a related group could hold more than 10 percent of a bank’s equity without prior approval of the central bank;
- Establish a “financial stability” committee to prepare for and avert financial crises. The prime minister, the CBE governor, the finance minister and the chair of the Financial Regulatory Authority would all sit on the committee
- Submit a set of measures to ensure data protection and customer privacy, including requiring banks to obtain written consent for indirect or direct data dissemination;
- Require all banks’ fiscal years to begin in January (many state-owned institutions end their FY on 30 June, as does the government);
- Require banks to publish quarterly financials in at least one daily newspaper and on their websites;
- Give banks 1-3 years to comply with the new provisions of the law;
The Banking Act, which has been in the works since 2017, will replace the 2003 Banking Act, as well as cancel overlapping provisions in related laws.
