Limited changes in boards of government banks before end of September 2017

Hossam Mounir
3 Min Read

The Central Bank of Egypt (CBE) is in coordination with the government to make limited changes in the leadership of state-owned government banks before the end of September 2017, according to a senior banker that talked to Daily News Egypt

The term of the boards of directors of National Bank of Egypt, Banque Misr, Banque du Caire, Industrial Development & Workers Bank of Egypt, Egyptian Arab Land Bank, Agriculture Bank of Egypt, and the Arab Investment Bank are expected to end on 25 September 2017.

Article 90 of the Banking Law No. 88 of 2003 stipulates that each public sector bank shall have a board of directors composed of the Chairman of the Board of Directors, two Vice-Presidents of the Board of Directors and six specialists in banking, monetary, financial, economic, and legal matters who have previous banking experience.

According to the article, the appointment of the chairman and members of the board of directors of such banks shall be by a decision of the Prime Minister after taking the opinion of the Governor of the Central Bank. The terms for the officials is set at a period of 3 renewable years, in accordance with the by-laws. The two deputies shall be appointed by a decision of the Prime Minister with the approval of the chairman of the bank. The Prime Minister also has the authority to decide the salaries, allowances and bonuses of the Chairman of the Board of Directors and his deputies and the bonuses of the specialized members who are not employees of the Bank.

According to the source, there is a strong tendency within the CBE to change the leadership of the seven banks owned by the government, one of them is the head of a commercial bank and the other heads a specialized bank. Four leaders are expected to remain leading commercial and specialized banks. In addition to one leader whose fate has yet to be determined.

CBE Governor Tarek Amer said in remarks last week that the bank has not yet decided the names of the candidates expected to be hired as replacements to the minister.

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