Sharm el sheikh: Assistant Deputy Governor of the Central Bank of Egypt (CBE) Essam Omar announced the introduction of regulatory directives to enhance risk management frameworks and bolster operational resilience across banks. This initiative aims to effectively mitigate associated risks within the banking sector.
According to State Information Service Egypt, Omar, speaking on behalf of CBE Governor Hassan Abdullah at the 6th Annual Forum for Chief Risk Officers (CROS) in Arab Banks, highlighted the Central Bank's efforts in reinforcing financial stability and facilitating digital transformation. The forum was held in Sharm El Sheikh and organized by the Union of Arab Banks.
Omar detailed that the CBE has rolled out directives to strengthen operational risk management, capital adequacy standards, and ensure banks maintain, test, and update their business continuity plans. Moreover, recovery plan directives have been issued to prepare banks for severe disruptions, safeguarding critical operations.
He also announced the development of the first comprehensive cybersecurity regulatory framework for the banking and financial sector. This framework sets benchmarks for evaluating the maturity and effectiveness of cybersecurity practices, demonstrating the Bank's commitment to digital governance and cybersecurity risk mitigation.
In terms of crisis management, Omar noted the establishment of emergency liquidity regulations and enhanced supervisory review systems. These include early warning indicators and intervention mechanisms to manage distressed banks effectively.
Acknowledging the rise of digital banking, the CBE introduced licensing and supervisory regulations for digital banks to promote secure growth in digital financial services. Omar emphasized the Central Bank's role in strengthening risk management efforts at both institutional and sector-wide levels, supporting internal risk control systems through corrective measures, capital adequacy standards, and governance frameworks.
Omar highlighted the importance of financial and operational resilience for banking sector stability, crucial for emerging markets. He stressed the need for effective risk management strategies, resilient risk culture, integrated risk frameworks, and strategic adoption of emerging technologies.
Financial indicators reveal the banking sector's strength, with a capital adequacy ratio of 18.3% as of March 2025, surpassing the Central Bank's minimum of 12.5% and the Basel Committee's 10.5% benchmark. Liquidity coverage ratios are strong at 853% in local currency and 188% in foreign currency, and the net stable funding ratio stands at approximately 180%, well above the 100% minimum. The non-performing loans ratio remains low at 2.2%, indicating high-quality credit portfolios.