In light of current reforms, the Central Bank of Egypt (CBE) delivered, earlier this month, a new draft banking act to the Cabinet for approval.
The Council of Ministers’ consultants hailed the new bill, which is in line with the approach of upgrading the banking sector expectations.
Among the objectives of the legislative framework, is the early intervention of the CBE to prevent financial crises by providing assistance to insolvent banks and implementing advanced international discipline in the sector.
The new law also strengthens the independence of the CBE in the light of the provisions of the Constitution. The CBE will also regulate installments and financial technology systems, in addition to enhancing privacy for account holders.
Technology will be used in electronic payments, check settlements, bank transactions and payment orders, replacing traditional methods.
For the first time in Egypt, the CBE will issue electronic money, a cash value denominated in pounds. The e-money, which is an electronic unit for online purchases, will be endured as a means of payment.
Images, documents, and electronic checks will be allowed during court disputes, developing the rules of governance of the Central Bank.
The law promotes transparency, protects customers rights and creates competition between banks to expand smaller consumer markets.
The bill sets the foundations for the membership of the boards of directors (BOD). It secures BOD rotation, fostering competition and diminishing conflict of interests to fulfill duties impartially.