GLA & Co. is pleased to announce the publication of “Banking Regulation in Egypt: Overview”, a Country Q&A guide authored for Practical Law (Thomson Reuters), providing a high-level overview of the governance and supervision of banks in Egypt as of 1 August 2026.

Overview of Issues Covered

The publication addresses the full spectrum of Egypt’s banking regulatory landscape, structured around the following core themes:

• Legislation and Regulatory Framework — An examination of Law No. 194 of 2020 (the Banking Law), the principal legislation governing the Central Bank of Egypt (CBE) and the banking system, covering currency exchange, money transfers, fintech, credit rating, and payment systems.
• Bank Licensing — A detailed walkthrough of the licensing regime for domestic banks, branches of foreign banks, and representative offices, including application requirements, minimum capital thresholds, and the approval process.
• Organization and Governance — The legal forms permitted for banks (joint stock companies or branches of foreign banks), ownership notification and approval requirements, and the governance framework including board composition, specialized committees, and the new mandatory fraud management unit.
• Prudential Requirements — Capital adequacy standards aligned with Basel III, reserve ratio requirements, and the role of the CBE’s Prudential Regulations Department and Basel Sector team.
• Resolution and Deposit Protection — The recovery and resolution framework for distressed banks under Chapter 12 of the Banking Law, creditor priority rankings, and the Guarantee of Deposits Fund (GDF) system that protects customer deposits up to EGP 100,000 per depositor per bank.
• Conduct of Business — Standards applicable to deposit-taking and lending activities, including KYC procedures, UBO identification rules, AML/CFT requirements, and credit granting guidelines.

Key Takeaways

1. Substantial Minimum Capital Requirements — Banks incorporated as joint stock companies must have fully paid-up capital of at least EGP 5 billion, while branches of foreign banks require a minimum of USD 150 million or its equivalent.
2. Expanded Definition of Financial Companies — A CBE circular effective April 2026 broadened the definition of “financial companies” in which banks can hold shares without the 40% ownership cap, now encompassing payment service providers, fintech finance companies, consumer finance companies, and others.
3. Mandatory Fraud Management Units — All banks must establish a specialized fraud management and prevention unit, reporting to the head of the risk sector, with a six-month transitional period for compliance from April 2026.
4. Reserve Ratio Reduction — The CBE reduced the mandatory reserve ratio from 18% to 16% of deposit balances in Egyptian pounds as of February 2026.
5. No Restrictions on Foreign Ownership — Egyptian law imposes no restrictions on foreign shareholdings in the capital of Egyptian banks, though ownership thresholds of 5% and above trigger notification and approval requirements.

For the full guide, visit: Banking Regulation in Egypt: Overview | Practical Law

About the Authors

The guide was authored by Ashraf Hendi, Head of Banking & Finance, and Maryam Tarek, Associate.