House of Representatives approves draft law related to establishment of banks

Daily News Egypt
3 Min Read

The House of Representatives has approved a draft law submitted by the government to amend previous laws related to the establishment of banks.

The draft law aims to control and regulate the legal rules that govern banks, and improve the performance of state-owned banks to serve the Egyptian economy.

The draft law abolished some of the laws regulating the work of these banks so that they are subject to the general rules stipulated in the Central Bank of Egypt (CBE) law.

The draft law aims to unify the legal system to which all banks operate in Egypt. It also aims to liberate the aforementioned banks from legislative restrictions that hinder their development and strengthen their governance.

The draft law also aims to achieve equality among all banks so that they all operate without discriminatory treatment, under the umbrella of the general rules regulating banks operating in Egypt and stipulated in the Central Bank and Banking System Law promulgated by Law No. 194 of 2020.

The draft law included four articles. The first article stipulates canceling the laws related to the establishment of the Arab Federal Bank for Development and Investment, the Egyptian Export Development Bank, and the Agricultural Bank of Egypt (ABE)”, established by Laws No. 1 of the year 1971, 15 of 1983 and 81 of 2016, respectively.

Article 2 states that the Arab Investment Bank and the Egyptian Bank for Export Development are licensed banks in accordance with the provisions of the Central Bank and Banking System Law, and the shares of ABE are wholly owned by the state in accordance with the provisions of the same law.

Article Three states: The boards of directors of the three banks subject to the abolition of the draft law, with their current formations, will continue to carry out their duties and specializations until the end of their term for stability considerations.

Article Four states: The law shall be published in the Official Gazette, and shall come into effect from the day following the date of its publication.

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