Anniversary of Banque Misr
Egypt, Economics, 5/7/2002

The idea of establishing Banque Misr first emerged in 1907, when Talaat Harb, the renowned nationalist industrialist, published a book calling for the foundation of a national bank with Egyptian financing.

He called attention to the idle funds invested by foreigners for purposes other than the interest of Egypt. He continued advocating this call on all occasions, with untiring persistence. In 1911, he published another book entitled "The Egyptian Economic Reform and the Nation's Bank Project ", where he explained his economic idea.

Banque Misr was established on May 7, 1920.

It was founded on the following important bases:

The shares of Banque Misr (20,000 shares each of a value L.E. 4.), were nominal; ie: to be held exclusively by Egyptians.

All the bank's dealings should be in Arabic.

The Bank should be operated by Egyptian employees.

The first national bank to be established in Egypt among several foreign banks, Banque Misr could successfully realize the first attempt to Egyptianize banking in Egypt. The Bank's foremost aim was to serve national economic interests without being involved in foreign interests, albeit utilizing foreign experience.

In recognition of the importance of spreading banking awareness within and outside Egypt and the importance of Arab economic co-operation, the bank sought to spread its branches all over the country and in several Arab states: Libya, Syria, Sudan, Yemen and Saudi Arabia.

During the first ten years of its existence the Bank introduced the saving fund system, and called upon all citizens to take advantage of its benefits. The call was met with great success.

In the first year of operating these accounts, L.E. 201.9 were deposited in the fund and the number of depositors reached 3825.

Activation of Egyptian Capital Market

Since its inception in 1920, Banque Misr owned the largest securities portfolio, which grew from L.E. 33.000 in 1920 to L.E. 8 million in 1950, then to L.E. 32 million in 1960, accounting for 84 percent of the volume of dealings in Cairo's Stock Exchange during that year.

Contribution to Industrialization One of the most important economic principles adopted by Banque Misr was to pay due attention to industrialization, with the object of achieving economic equilibrium between various sectors of national economy.

This could be affected by utilizing Egypt's physical and human resources, and direct export proceeds to procure capital rather than consumer, luxury goods.

Banque Misr had been persistently advocating the establishment of a stable industrial sector and untiringly sought to establish Egyptian joint-stock industrial corporations.

The role of Banque Misr was to revive and promote industries in order to generate profit to its shareholders. Then the bank moved from industrial to securities investments.

The Bank was actively engaged in reinforcing the financial positions of its subsidiary and associate companies. In 1954, the Bank subscribed to the incorporation of the Iron and Steel Company, and supported the Jute Company.

The Bank also founded the Misr Hotel Company and Misr Dairy and Food Company.

The Bank subscribed to most of the vital projects initiated in 1955 such as the foundation of the Egyptian Chemical Industries Company and the National Cement Company.

Before the 1952 Revolution, Banque Misr founded or subscribed to 26 companies. The total capital of companies founded before the Revolution reached L.E. 21.19 million and the average rate of subscription by the Bank to the capital of each company reached 50 percent and sometimes 94 percent.

The Bank uses the most high-tech computer systems in the Middle East. The Main International Operation Branch in Cairo has a dealing room equipped with the most sophisticated communication and computer facilities, linked to satellite financial networks and capital markets around the world.

Some branches are provided with Automatic Teller Machines (ATM'S), featuring deposit/ withdrawal/cheque book order/customer balance services, which are available to customers around the clock.

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