The market is awaiting changes to be made in the leadership of some banks in mid April, according to a prominent banker.
The source explained that a number of bank heads and managing directors, as well as members of the boards of directors, will have been in office for three years by 15 April. Therefore, it is expected that the banks will examine the performance of their officials and decide on whether they will stay in office or be replaced.
The source noted that banks have already started to make lists of officials who will stay in office and of others who will leave their positions—also preparing proposals for who will succeed them. These recommendations are set to be presented to the Central Bank of Egypt (CBE) to be approved.
According to Bank Law no. 88 from 2003, the opinion of the governor of the CBE has to be taken regarding changes of bank heads, members of the boards of directors, or executives responsible for credit, investment, portfolio management, and foreign transactions. They are recommended to the CBE by the banks.
The CBE governor may request the disqualification of one or more of these candidates if they are proven to violate safety rules or are found to endanger depositors’ money or bank assets during the inspection on banks. If the bank does not disqualify the candidate, the governor can exclude the designated bank officials by himself, while the concerned party can appeal the decision within a period of 60 days after they have been informed of the decision.
According to the same law, the very same rules apply to officials who are appointed in branches of foreign banks working in the Egyptian market.