LEGISLATION WATCH- Banking Act will expand the CBE’s oversight of bank management, boards: The Banking Act will grant the central bank greater oversight of the banking sector and boards,CBE Governor Tarek Amer announced yesterday, according to Al Mal. The law will establishes new procedures that expand the CBE’s oversight of bank management, said Amer, without offering specifics. The governor remained tight-lipped on the details of the proposed law, but had said last week that the amended legislation would not set term limits for bank managing directors — a key issue that had stirred up controversy last year when an early draft showed that the CBE would be given wider powers to set term limits. He also noted that the law seeks to strengthen governance regulations for the sector.

The new law would also strengthen governance and independent oversight of the central bank’s own board as part of efforts to ensure transparency, said Amer. He noted that the law, which was reviewed by the CBE’s board recently, has the support of international finance institutions such as the IMF and World Bank.