New mechanism to investigate into irregularities in banking system

Egypt has introduced new amendments to the new banking draft law. The amendments include setting up an investigation mechanism in the Central Bank of Egypt (CBE) to probe into any irregularity or complaints in any bank.

An experts team of investigators will conduct the inquiry and in case an irregularity is proven, the case will referred to prosecution.

Prime Minister Atef Ebeid said this change aims at monitoring any malpractice in any bank.

Ebeid added that another article was amended on the need to have a report by banks' customers who apply for loans on any earlier loans they received.

The capital of banks will be upped to L.E. 500 million, said Ebeid, which will result in new mergers among banks.