In a plenary session on Sunday, the House of Representatives approved a draft law submitted by the government to issue the new Law on the Central Bank, the Banking System and Money. The new legislation was referred to the State Council for review.
The law’s provisions apply to the Central Bank of Egypt (CBE), the banking system, foreign exchange and money transfer companies, inquiry and credit rating companies, payment system operators and payment service providers.
The draft law provides for the repeal of the Law on the Central Bank, the Banking System and Money issued by Law No. 88 of 2003. It also allows for the cancellation of every provision that violates the provisions of this law and the accompanying bylaw.
This includes provisions for the establishment of some banks in relation to the minimum capital and the powers of the CBE, control and supervision, and early intervention. Also covered is the settlement of troubled banks, account confidentiality and rules of dealing in foreign exchange.
According to the draft law, those addressed by it have to reconcile their conditions in accordance with its provisions within a maximum of one year from its implementation. The CBE’s Board of Directors may extend this period no more than two additional years.
The draft law also stipulates that the Board of Directors at Egypt’s banks in their current forms, including at the CBE, continue to exercise their functions and powers until the end of their respective terms.