Egyptian banks set for applying Basel provisions
Egypt, Economics, 7/8/2003

Egyt's Governor of the Central Bank of Egypt (CBE) Mahmoud Abul Oyoun said that the banking system sets for applying Basel 2 provisions till the year 2006 pertaining to the capital adequacy rate, appropriations and market hazards.

In a recent symposium entitled "New Basel Criteria on Capital Adequacy Rate" organized by the Banking Institute and the Commercial International Bank (CIB), Abul Oyoun said that since 10 years, the Egyptian banks have complied with the Basel criteria and they managed to raise the capital adequacy rate from 8 to 10 percent recently.

Abul Oyoun pointed and that the Egyptian banks strictly applied the criteria on debts' appropriations in line with the international ones, adding that a negative list on insincere customers is expected to be announced in all Egyptian banking units.

He noted that Egypt has exerted strenuous efforts in the field of money laundering, adding that a host of international committee will make inspection visits for ensuring the soundness of the banking performance.

The CBE Governor said that the CBE mainly aims at introducing an effective supervisory climate, pointing out that many Egyptian banks are implementing modernization programmes so as to speed up the application of Basel provisions.

Director-General of the Banking Institute Hala Al Saeed said that despite the cropping up of negative aspects in the application of capital adequacy rate criterion, yet many countries and different banking systems have applied them with a view to boost their competitiveness and stability.

Al Saeed added that these negative aspects necessitated laying down a new framework for addressing them to a sound banking system noting that the new Basel provisions revolve on three main pivots: minimum capital rate, auditing supervisory and market control.

Previous Stories:
  Government share in 12 companies for sale   (7/5/2003)
  Banks to implement Basle recommendations by 2006   (7/1/2003)
  CBE governor: surplus in balance of payments; banks to have quality loans and profit   (6/25/2003)
  PA approves articles of banks bill   (5/28/2003)

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