Central Bank Issues Regulations for Licensing, Monitoring, and Supervising Digital Banks in Egypt

The Central Bank of Egypt has issued regulations for licensing, registering, 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.

The licensing requirements for digital banks include that the issued and paid-up capital not be less than 2 billion pounds.

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.