Basel II

    Regulations issued by the Central Bank of Egypt in the framework of implementation of Basel II :

  1. The CBE’s board of directors ratified on December 18th , 2012 the issuance of the regulations of the minimal threshold for capital adequacy ratio in the context of Basel II implementation by all banks operating in Egypt with exemption to foreign branches, so banks are obliged to keep a minimal capital requirement equals to 10% between the capital base (Numerator) and the risk-weighted assets (the denominator) to meet credit, market and the operational risks.

    For uploading the regulations of the minimal threshold for capital adequacy ratio (Arabic only).

  2. To complement the efforts of the Central Bank of Egypt to develop internal control systems and establish the concept of governance in the banking system, taking the importance of them both into account based on the quality and size of the risks related to banking operations , in addition to the importance of applying prudential measures to battle those risks not Limited to internal audit but to form a comprehensive system of internal control subject to improvement and periodic assessment, therefore , the CBE's Board of Directors ratified on August 19, 2014 on the regulations for internal control in accordance with the provisions of the Law The Central Bank, banking and monetary authorities issued by Law No. 88 of year 2003 and its executive regulations and its amendments with the aim of supporting the internal control applied by Egyptian banks , in addition, to be considered complementary with the governance regulations issued by the CBE on August 23, 2011.

    For uploading the regulations of the internal control (Arabic only).

  3. In the framework of targeting a correlation between the banks' risk profile and the efficiency of their risk management systems and their capital adequacy, therefore pillar II of the Basel II has been implemented based on two main axes as follows:
    1. The CBE’s Board of Directors ratified on 2 March 2016 the issuance of the regulations Internal capital adequacy assessment process -ICAAP which should be undertaken by the banks themselves to overcome all risks (including those not addressed in the first pillar) according to the risk scheme per each bank.

      For uploading the regulations of the ICAAP (Arabic only).

    2. Several procedures have been taken to activate the Supervisory Review and Evaluation Process (SREP). The Central Bank of Egypt aims at maintaining sufficient capital to cover various types of risks. In addition to encouraging banks to develop the best methods of risk management and use in monitoring, management, measurement and face the risks that may be exposed to them.