Gamal Negm, Deputy Governor of the Central Bank of Egypt (CBE), stated on Monday that the British bank Standard Chartered had obtained preliminary approval from the CBE to operate in the Egyptian market.
According to the Middle East News Agency, Negm said that Standard Chartered’s expansion in Egypt shows the attractiveness of investment in the Egyptian banking system.
He revealed that Standard Chartered will open its first branch in Egypt by September, at the latest, in Cairo, and that it will open another branch in Alexandria next year.
He added that Standard Chartered Bank had paid all the fees required to open a branch in Egypt, and had also submitted its strategic plan in the Egyptian market.
The British bank will provide different services from retail banking to corporate credit, Negm said, noting that the presence of a global bank in the Egyptian market will contribute to enriching the Egyptian banking system and adding new experience.
In 2019, the CBE announced a study of issuing licenses for new foreign banks to enter the Egyptian market with the aim of enhancing competitiveness and developing banking services provided to customers.
Standard Chartered was the first to get the CBE’s operation licence after the issuance of the Central Bank and Banking System Law in September 2020.
The banking system in Egypt includes 5 banks that have a license to operate as a foreign bank branch, namely Citibank, Mashreq, National Bank of Greece, First Abu Dhabi Bank, and Arab Bank.
The Central Bank Law sets the terms and conditions for establishing branches of foreign banks in Egypt, as Article 68 of it stipulates that a license application to establish a branch of a foreign bank in Egypt for which initial approval has been issued shall be submitted to the Governor of the Central Bank, accompanied by the documents to be determined by a decision from the board of directors.
The law stipulated that the licence application should include an unconditional guarantee from the head office of the foreign bank for all deposits with the branch, the rights of creditorsو and all other obligations of the branch. The licence application should also present an authorization issued by the head office of the foreign bank in the name of the manager in charge of the branch and his deputy, and evidence of the governor’s approval prior to their appointment in accordance with the provision of Article 120 of the law.
The law stipulates that the license application shall be presented to the Board of Directors to issue a decision in this regard within 60 days from the date of submitting the application in full with the required documents, and the license applicant shall notify the Central Bank in the event of any change in the data provided in the license application.
Article 69 also indicated that the applicant for a license shall be notified of the acceptance decision or the documents or data that he must complete within ninety days from the date of submitting the application. Approval issued by the Board of Directors licensing is to be published in the Egyptian Gazette at the expense of the licensee and on the website of the Central Bank. The refusal of the licence application shall be by a decision of the Board of Directors, and the applicant shall be notified of it within 30 days from the date of its issuance.