Egypt calls for greater private sector role, debt swaps at G20 meeting    Al-Sisi, Macron discuss Gaza ceasefire efforts, France's planned recognition of Palestinian state    Over 60 million visits recorded under Egypt's Women's Health Initiative since 2019    State steps up efforts to streamline trade, digitise processes: Investment minister    Public enterprises minister reviews steps to restart carbon anode factory in Ain Sokhna after two-year hiatus    Culture minister launches national plan to revive film industry, modernise cinematic assets    Thailand, Cambodia clash on new front as tens of thousands flee    Macron's plan to recognize Palestinian state, divides Western allies    Remittances from Egyptians abroad surge 70% YoY in July–May: CBE    Sudan's ambassador to Egypt holds reconstruction talks on with Arab League    Egypt hosts international neurosurgery conference to drive medical innovation    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 calls for boosting oil & gas investment to ease import burden    Egypt welcomes 25-nation statement urging end to Gaza war    EGX to close Thursday for July 23 Revolution holiday    Egypt, Senegal sign pharma MoU to unify regulatory standards    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    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    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.



Limited impacts for recent CBE lending controls: Beltone
Reducing maximum loan per customer and bank contributions in capital market funds for better risk management and to diversify its applications
Published in Daily News Egypt on 24 - 01 - 2016

Beltone Financial said the recent lending controls issued by the Central Bank of Egypt (CBE) will have limited effects on banks. CBE cut down the maximum bank-lending rate per customer and the banks' contributions in funds of the capital market.
Beltone's research department issued a recent report stating that this procedures aims for better risk management at banks, diversify its applications, and for new means of growth to offer better support to the state's budget deficit before imposing the value added tax, in addition to institutionalizing small and medium enterprises (SMEs).
It said that reducing personal loans rate to 35% of the customer's monthly income and 40% for personal housing loans will improve assets quality at banks and prevent new non-performing debts.
"Through ongoing discussions with management of some banks, we believe that major banks such as CIB and Credit Agricole Egypt have already adhered to these controls in most of their operations, with only a few exceptions such as the high-income tranche," Beltone's report read.
Some public sector and small banks exceed this rate, it said. Reducing the maximum syndication per client from 20% to 15% of the capital base of the bank and the reduction of the maximum syndication for client and parties associated with it from 25% to 20% of the capital base of the bank will encourage banks to give more loans and cut down risks resulting from lending a small number of major companies, according to Beltone.


Clic here to read the story from its source.