The sustainable banking principles have become a vital element to create a competitive environment among banks, Mona El-Baradei, executive director of the Egyptian Banking Institute (EBI) of the Central Bank, said on Monday.
She explained in a keynote speech at EBI 6th Annual Conference “Towards Banking Sustainability: Principles” the principles include six axes most notably; designing advanced banking products to meet with all the needs of individuals, ensuring environmental protection, reducing poverty, achieving social equality as well as financing projects that support society along with ensuring long term business.
The banks are required to apply long-term policies in order to enhance their capabilities in facing the current turbulent situation, and set up the principles of transparency and corporate governance, El-Baradei noted.
The application of sustainable banking principles will reduce the operating risks for banks and contribute to attaining indirect profits, she added. In addition, the principles support banks in improving their portfolios and regulating banking activities as pursuant to the governance standards.
Moreover, the banking official said there are several banks have managed to register long-term growth after applying the banking principles which enabled those banks to strengthen their positions in the wake of difficult circumstances and to cope with volatility and crisis.
El-Baradei concluded by saying that the Egyptian banking sector has played a significant role in supporting the national economy within the recent phase by virtue of the economic reform which carried out by a central bank in 2004.