2023-07-12 15:06:00
A U A Wednesday, July 12, 2023 06:06 PM
Today, Wednesday, the Central Bank of Egypt issued the rules for licensing, registering, monitoring and supervising digital banks, which represents an important step in keeping pace with global developments in the financial technology industry and meeting the needs of customers in the Egyptian market.
The new rules come in light of the provisions of the Central Bank and Banking System Law promulgated by Law No. 194 of 2020, which dealt with the concept of digital banks and the banking services they provide through digital channels or platforms using modern technological technologies.
According to a statement by the Central Bank, the licensing requirements for digital banks include that the issued and paid-up capital not be less than two billion pounds in the event that all bank business is practiced except for financing large companies, with the possibility of financing these companies, provided that the capital is increased to 4 billion pounds, as well as that the largest shareholder is an institution. A financial institution with a previous business in similar activities at a rate of not less than 30% of the total capital value.
The statement added that among the requirements for obtaining the license mentioned is the submission of a detailed feasibility study that includes identifying the target segments and products that are planned to be made available, as well as information technology plans, and cyber security plans and strategies, noting that digital banks are subject to the same rules and controls for oversight and supervision applied to banks operating in the Arab Republic of Egypt. And the same laws and controls for combating money laundering and terrorist financing, in addition to some other requirements consistent with the nature of its work.
The statement indicated that these instructions support the realization of the country’s vision to transform into a society less dependent on cash, and also work to enhance financial inclusion, and create a supportive climate for the financial technology industry, as digital banks develop and make available banking products and services in a distinct manner from a distance and with high quality commensurate with the needs of all. Community groups, including micro, small and medium enterprises and youth, with the aim of facilitating access to these products and services in a quick and easy way.
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