Egypt's Egyptian Financial Supervisory Authority (FRA) has issued new financial solvency standards for companies and entities operating in non-banking financial activities, aligning the sector for the first time with Basel III international rules. The decision, issued by the FRA Board chaired by Mohamed Farid as Resolution No. 137 of 2025, follows public consultations and aims to strengthen the sector's resilience against credit, operational, and market risks, reduce the impact of economic shocks, and ensure liquidity to meet both short- and long-term obligations. A trial application will begin on 1 January 2026, with quarterly reporting to the FRA, before the rules fully replace existing solvency regulations on 1 January 2027. The framework introduces capital adequacy requirements with risk and countercyclical buffers, revised operational and market risk calculations, new long-term liquidity measures, provisions for restructured debt, and updated concentration risk limits. The standards also streamline debt write-off procedures, allowing companies to remove bad debts under set conditions without the previous 18-month waiting period. The FRA said the move is part of a broader strategy to develop Egypt's non-banking financial market, safeguard financial stability, and support sustainable growth. Attribution: Amwal Al Ghad English Subediting: M. S. Salama
