CBE: Egyptian banking sector maintains prudent lending practices

Egypt’s central bank reported on Wednesday that the banking sector continued to provide financing for the business sector and the family sector without excessive risk, which contributed to a lower likelihood of systemic risks for borrowers’ default.

The central bank has successfully improved the credit environment through coordinated efforts between economic – fiscal and monetary – policies and macro-precautionary policy to maintain economic and financial stability.

Fiscal policy has implemented financial control measures, while monetary policy has taken a restrictive approach to address inflation by increasing interest rates and maintaining the mandatory reserve local currency ratio at 18 per cent.

On the other hand, the precautionary policy kept the maximum percentage of total consumer loan premiums at 50 per cent of total monthly income including mortgage premiums at 40 pre cent of total monthly income.

Attribution: The Central Bank of Egypt

Subediting: M. S. Salama