The Central Bank of Egypt (CBE) has issued some regulations governing the financing provided by the banks to the financing lease firms, Al Mal News reported, citing the (CBE).
As per the new regulations, the total direct and indirect credit facilities as well as investments in the financing lease firms’ securitization portfolio shall not exceed 5% of the bank’s loan portfolio and credit facilities.
Moreover, the total direct and indirect credit facilities and investments in the securitization portfolio of one financial leasing firms shall not exceed 1% of the bank’s loan portfolio and credit facilities.
The CBE has also ordered the banking sector to determine the purpose of the facility and to follow up on the process. The regulations shall come into force as of date of issuance on February 29th.
