Egypt's current account gap narrows, but overall BoP records deficit    Egypt's PM reviews debt reduction strategy, eyes more private investment    Egypt hosts international neurosurgery conference to drive medical innovation    Egypt, India discuss expanding industrial, investment partnerships    World Bank proposes Egypt join new global health initiative    Egypt's EDA discusses Johnson & Johnson's plans to expand investment in local pharmaceutical sector    I won't trade my identity to please market: Douzi    Sisi sends letter to Nigerian president affirming strategic ties    Egypt welcomes 25-nation statement urging end to Gaza war    Egypt, Senegal sign pharma MoU to unify regulatory standards    Egyptian pound ticks down in early Tuesday trading    Famine kills more Gaza children as Israel tightens siege amid global outrage    Kuwait's Crown Prince, Egyptian minister discuss strengthening cooperation    Egyptian Drug Authority discusses plans for joint pharmaceutical plant in Zambia    Egypt's FM seeks deeper economic, security ties on five-nation West Africa tour    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt foils terrorist plot, kills two militants linked to Hasm group    Egypt, Somalia discuss closer environmental cooperation    Egypt exports 175K tons of food in one week    Giza Pyramids' interior lighting updated with new LED system    Egypt's EHA, Huawei discuss enhanced digital health    Foreign, housing ministers discuss Egypt's role in African development push    Korea Culture Week in Egypt to blend K-Pop with traditional arts    Egypt, Uruguay eager to expand trade across key sectors    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    Egypt's Democratic Generation Party Evaluates 84 Candidates Ahead of Parliamentary Vote    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



CBE to supervise monetary transactions outside banking sector: Deputy governor
Published in Daily News Egypt on 01 - 11 - 2014

The Central Bank of Egypt (CBE) will create regulations supervising "shadow banks", including all monetary transactions made outside of the banking sector which are under the supervision of regulatory entities. The statement was made by CBE Deputy Governor Gamal Negm in an economic conference in Sharm El-Sheikh on Thursday.
During the conference, Negm said that financial funds are established by banks and help collect money through subscriptions, authorising management by investment administration companies. Those companies invest the money in sectors outside the supervision of the CBE, making it essential to monitor their actions.
Managing Director and Head of Asset Management at HC Securities & Investment, Omar Radwan, described the CBE's decision to increase its supervision as an unregulated decision. Radwan added that it will narrow the opportunity for funds which now face a huge reduction in number, especially after the CBE's decision to lower banks' fund share from 5% to 2%.
The CBE's decision came after it capped the maximum amount of invested money in all monetary fund markets and fixed income funds of a single bank. The CBE said it should not be more than 7.5% of its total domestic currency deposit, and not exceed 50 times the maximum fund's capital share, 2%, or whichever is less.
Radwan added that it is important for banking sector officials to cover the parallel economy out of their supervision, unlike the funds under 100% supervision of the CBE, the Financial Supervisory Authority (EFSA) and General Assemblies.
Radwan said that fund money comes from the banking sector and are managed through the purchase of treasury bills. He also said that this decision will halt monetary fund activities in favour of banks, who will retain money.
National Bank of Egypt CEO Hisham Okasha added that the banking system's success depends on collecting savings and managing them in efficient ways to develop the economy. Monetary investment funds work on the output of money from banks and their investment in government debts against the stability of the banking system. As a result, deposits in the banking system must be saved.
Banks are investing savings they collect in various economic fields, whatever the size of individual or company finances, Okasha has previously said.
He added that banks invest their surplus in the treasury bills, unlike monetary funds that allocate most of the savings for investments in treasury bills.
The gain achieved by banks from regular financing is much better than investments in treasury bonds and bills, as they provide credits in exchange for commissions and expenses. Taxes are also added to net revenues, unlike government debts instruments where taxes are added to total revenues not net revenues, he said.
The CBE decision to decrease the maximum banks contribution in monetary funds with attempts to limit funds management, will have negative repercussions on monetary and fixed income funds. This can reduce the size of those funds on both the long and short term, according to Managing director of Rasmala Egypt Asset Management Ahmed AbulSaad.


Clic here to read the story from its source.