New banking bill requires CBE to increase its capital to EGP 20 billion
Saturday، 18 May 2019 - 12:08 PM
A new banking bill that will be referred to the House of Representatives for approval before the end of May requires the Central Bank of Egypt (CBE) to increase its capital to EGP 20 billion, a knowledgeable CBE source has said.
Talking to MENA, the source that under the current law the minimum capital of the central bank is set at EGP 4 billion.
The CBE capital presently stand at EGP 16 billion, he pointed out.
The new bill identifies the central bank as a supervisory body that answers to the president of the republic and that enjoys technical, financial and administrative independence, the source said.
Under the provisions of the draft law the objectives of the CBE are ensuring the soundness of the banking and monetary system and realizing price stability in addition to formulating and implementing the monetary, credit and banking policies, he added.
The proposed bill changes the mechanism for appointing the CBE governor to be in line with the new constitution, stipulating that the appointment decision should be announced through a presidential decree after winning the approval of the majority of members of the House of Representatives, the source said.
It states that the governor should serve a four-year term that can be renewed for one time only, he added.