The Central Bank of Egypt (CBE) has instructed banks not to grant or renew credit facilities to non-banking credit providers unless officially registered, assigned a CBE code, and listed on its information network and the Egyptian Credit Bureau. Existing indebtedness will be placed under liquidation if these entities fail to regularize their status within three months, with banks tasked to notify them.
The Central Bank of Egypt (CBE) issued a circular to banks instructing them not to grant or renew credit facilities to non-banking credit providers that are not officially registered. These entities must be assigned a CBE code and recorded on the bank's information network as well as with the Egyptian Credit Bureau.
For existing indebtedness, the circular states it will be placed under liquidation if the concerned entities fail to regularize their status within a three-month period. Banks have been tasked with notifying these entities of the directive.
The CBE emphasized that the measure aims to ensure comprehensive and accurate credit information on clients, enabling better assessment of their creditworthiness. This supports sound lending decisions and enhances the safety and stability of the banking sector.
The directive aligns with the Central Bank and Banking Sector Law No. 194 of 2020, along with a March 26, 2020, circular on updates to the CBE’s credit registry system rules. These require banks and credit providers to disclose extended credit to clients to credit reporting and rating agencies, in addition to the CBE’s credit registry.
