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Wednesday, 2 August 2017

Banks to discuss remaining objections on CBE and Banking Acts in mid-August meeting

Bankers, CBE to meet in two weeks to continue talks on central bank and banking acts: The Federation of Egyptian Banks (FEB) will be meeting with central bank officials in two weeks’ time to continue discussions of industry concerns regarding proposed amendments to the CBE and banking acts, unnamed bankers tell Al Borsa. Banks will each prepare a separate memo with their specific objections to present during the meeting, they add, explaining that the CBE is being responsive to their demands, but could still be “a little more flexible.” On Sunday, news from a meeting between the CBE and FEB suggested that the parties were heading towards a compromise on some contentious clauses in both acts, such as the central bank’s power to appoint members of a bank’s board of directors. Among the remaining thorny issues: term limits for bank MDs, the notion that the appointment of the CBE governor should not be subject to confirmation by the House of Representatives, and a mandatory “contribution” of 5% of each bank’s net profits to an industry development fund.

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