Thursday , June 8 2023

The European Union supports the central bank's efforts to strengthen the supervision of banks


The Central Bank of Egypt (CBE), in cooperation with the European Union and the German Embassy in Cairo, has launched the program "Strengthening Financial Coverage, Banking Supervision and Supervision of Banks in Egypt", with € 3.2 million in three years technical assistance to support financial inclusion efforts and strengthening the banking control framework.

At the conference held today to announce the program, the Central Bank of Egypt stressed that it places financial coverage on top of its priorities and policies and collaborates among the various parties at national level to create conditions enabling the Egyptians – which do not receive adequate financial services – In addition to saving and achieving their financial aspirations, micro and small businesses have access to finance, investment, growth and more jobs..

More than 100 participants from government, business, embassy, ​​and international development organizations participated in the program.

Ambassador Sourcoush, the head of the EU Delegation in Egypt, praised the Central Bank's efforts in the process of economic reform, underlining the specificity of the EU's contribution, and a single program of financial inclusion and stability..

Mr Gamal Najm, Deputy Governor of the Central Bank of Egypt and Lubna Hilal, in their initial comments on the latest developments in banking supervision and supervision and financial coverage. "The Central Bank of Egypt is working continuously to further strengthen the technical capacity of the control sector Banking supervision, as well as bank governance, in line with international standards and best practices."

Ms. Lubna Hilal explained the efforts of the Central Bank of Egypt to develop science-based policies by measuring the levels of financial coverage, trends and challenges of the Republic. "We have been able to collect a large amount of basic data to prepare the first report on financial inclusion, More on how to do this important work at the local levelHe said.

In turn, German Ambassador Julius Georg Lui said Germany has supported a long period of financial inclusion procedures in Egypt and is pleased to bring great improvement to families and companies in obtaining financial services, while the German Agency for Implementation for International Cooperation "The project said that the Central Bank of Egypt has become a reference to intelligent financial coverage policies in the Arab world and beyond.

At the local level, financial inclusion has become a priority while the Egyptian government launched the Sustainable Development Strategy: Vision 2030, which focused on increasing financial coverage and implementing several own initiatives in close coordination with stakeholders. To institutionalize this process, the Central Bank of Egypt (CBE) introduced the Central Administration of Social Inclusion in November 2016 to lead and monitor the process of financial inclusion and to enhance coordination and cooperation with stakeholders.

Reform policies have been formulated to promote financial inclusion in general and women's financial inclusion in particular. These efforts have led to a significant improvement in the indicators of financial inclusion over the past two years, as shown in the FINEX index "Global Findex" Issued by the World Bank in 2017, which showed an increase in the proportion of adults with a bank account in Egypt, which reached 33% in 2017, after it was 14% in 2014 and 10% in 2011.

The program will support the efforts of the Central Bank of Egypt to establish a global database at national level to measure the levels of financial coverage through a supply and demand study covering both the household sector and SMEs . The investigation will take place in 2019, in close coordination with the authorities concerned.

At the level of the supervisory and supervisory sector of the Central Bank of Egypt, the sector has witnessed reform programs over the last decade and has begun to adapt its supervisory methodology to comply with regulatory guidelines for the risk-based approach. In addition, the banking supervision system has been developed and the Bank has implemented the Basel II decisions II andIII – According to the timetable issued by the Basel Committee on Banking Supervision. This project will address the implementation of the final amendments to the Basel Framework III (Known as the Basel II Framework), the supervisory review process and banking governance, which contribute to improving financial stability and increasing transparency and disclosure in the banking sector. In addition, a comprehensive macro-risk framework with a range of policy instruments, analysis and coordination monetary and financial policies, as well as a financial and banking reporting framework will be implemented, thus the general prudential risk framework will help the Central Bank Egypt to make the Egyptian financial system more robust and more stable.

The conference focused on the current and future reform policies of the Central Bank of Egypt. The representatives of the departments involved in supervision, supervision and financial coverage presented the latest developments and features of the relevant reform programs, highlighting the importance of cooperating with the European Union and sharing best practices with other countries in the region..

The program is part of the "Enhance SMEs Access to Financial Services" program in Egypt, funded by the German Federal Ministry for Economic Cooperation and Development, to enhance these institutions' access to financial banking services as well as non-bank financial services such as financial intermediation, equity financing and insurance for small and medium-sized enterprises.

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