CBE Issues Regulations for Licensing of Digital Banks
he move comes as part of Egypt's efforts to promote financial inclusion and modernise its banking sector.
The Central Bank of Egypt (CBE) has issued new rules for licensing, registering, controlling, and supervising digital banks. The rules mandate that digital banks have a minimum issued and paid-up capital of EGP two billion (USD 64.6 million) to practice all banking activities except financing large-scale businesses.
To offer financing services to large-scale businesses, digital banks can increase their capital to EGP four billion (USD 129.3 million). The largest shareholder in digital banks must be a financial institution with a portfolio of relevant projects and activities and a stake of at least 30 percent of total capital.
In addition, the new rules require digital banks to provide a detailed fiscal study that incorporates the clients they target and the products they offer, as well as their information technology plans and cybersecurity strategies.
The move comes as part of Egypt's efforts to promote financial inclusion and modernise its banking sector.
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