The Central Bank of Egypt (CBE) has issued new rules for licensing and registering digital banks, with the banks being required to raise their capital to four billion Egyptian pounds, according to a statement on Wednesday.
The licensing also requires digital banks issued and paid-up capital to not be less than two billion pounds, in the case of practising all banking businesses, except for financing major companies.
Digital banks will be required to have their largest shareholder be a financial institution with a previous business background in similar activities at a rate of at least 30 percent of the total value of the capital.
The move is an important step in keeping pace with global developments in the financial technology industry and meeting the needs of customers in the Egyptian market, said the CBE.
Digital banks have to submit a detailed feasibility study that identifies the target segments and products to be made available.
