CBE Establishes SMEs’ Credit-Risk Mechanism

Dr. Farouk El-Okdah, governor of Central Bank of Egypt, said that the regulator studies introducing a credit-risk mechanism for loans offered to SMEs. In addition, CBE is setting some regulations for registering transferred assets, as part of CBE’s efforts to develop SMEs and solving obstacles facing them.

His address in “SMEs: The Arab Economic Strategic Choice” Conference organized by Union of Arab Banks in collaboration with Federation of Egyptian Banks and General Investment Authority was said by Lubna Hilal, deputy of governor of CBE, on behalf of him.

Hilal said CBE has launched an initiative to encourage banks to offer banking services for SMEs. Therefore, the Egyptian regulator targets to develop banks’ infrastructure through establishing specialized departments, training employees and providing information, guarantees, insurance, and methods of payment.

CBE launched a database in collaboration with Egyptian Banking Institute and Central Agency for Public Mobilization and Statistics about 36 thousand SMEs.