CAIRO: Frances largest bank BNP Paribas announced it would sell off its retail banking operations in Egypt as a means to shore up its capital base as the economic situation in Europe continues to degenerate, banking sources told media on Wednesday. BNP, with around some 70 branches in the North African country, could earn as much as $400 million if the sale goes through, one of the sources said, speaking on condition of anonymity to Reuters news agency. Both the sources said talks were at very early stages. BNP has been shedding assets to meet tougher capital requirements under new banking regulations, intended to crack down on risk taking, that have forced many European banks to slash their balance sheets, the report said. The sources did not want to be named as the matter is not public. A spokeswoman for BNP said the lender would examine any “expressions of interest” for the business while declining to provide any additional details. Dow Jones reported the news earlier. “BNP has had a strategic review of their international operations and decided to hive off the Egyptian retail business. It's not a massive business and talks are happening at very initial stages,” the first source said. Qatar National Bank (QNB), the largest lender in the Gulf Arab state, is one of the parties which has expressed initial interest, the source said.
