Non-banking financial sector companies have been asked to develop crisis management plans dealing with the ramifications of the coronavirus (COVID-19) pandemic, according to Mohamed Omran, Chairperson of the Financial Regulatory Authority (FRA).
The request was put forward by the coronavirus crisis management team to ensure the sector can continue functioning given the current circumstances.
Omran said that the team has, for the first time in Egypt, prepared a stress test to measure the non-banking financial sector institution tolerance to financial shocks caused by the global pandemic.
The stress test would also look at how this sector deals with the pandemic’s impact on its income, obligations and financial solvency.
He added that the analysis aims to identify the size of the risks non-bank financial markets may face based on the current economic conditions due to the coronavirus.
It will also look at the precautionary measures adopted by the government, and the impact of these risks on financial performance and indicators.