Greater merger among Egyptian banks

A decision has been taken to implement a program to restructure banks and cut down their number from 56 banks to 37.

The banking sector's reform operation, according to official sources, aims at reinforcing banks' roles in development as well as to raise savings rates to 28% of GDP so as to give local investment a new push to increase national growth rate to 6% annually.

Al-Ahram learnt that the merging process and its relevant studies are being carried out under the auspices of the Central Bank of Egypt (CBE) in order to ensure depositors rights in branches of foreign banks.

By the end of merging process, Egyptian banks will meet the conditions related to increasing their capital to LE 500 million.

Merging Al-Mohandis Bank with the National Bank of Egypt will end next October, while merging Al-Tegaryoon Bank with the National Bank of Egypt will be completed late in December.

Misr Commercial Bank, Suez Canal Bank, and Egyptian-Gulf Bank compete for purchasing United Bank of Egypt.

The Egyptian Gulf Bank and other banks offered to purchase Al-Nile Bank. About 18 international and regional institutions offered to purchase the Egyptian American Bank.