Egypt’s central bank sets EGP 50m minimum capital for credit guarantee firms

Egypt’s central bank issued new licensing and supervisory rules for credit guarantee companies, including a minimum issued and paid-up capital of 50 million Egyptian pounds ($967,038), aiming to strengthen financial stability and risk management in the sector.

The Central Bank of Egypt’s (CBE) board approved the rules at its meeting on 23 September 2026, under the country’s 2020 Central Bank and Banking System Law.

Under the new framework, credit guarantee companies must be established as Egyptian joint-stock companies, with all shares held in registered form.

The rules require companies to maintain a clear ownership structure, including identifying related parties and ultimate beneficiaries, and verifying the legality of funding sources.

The central bank will also assess whether granting a licence is consistent with Egypt’s broader economic interests and competition rules and does not contribute to monopolistic practices.

Founders, ultimate beneficiaries, and key executives must demonstrate integrity, good reputation, financial solvency, and relevant expertise. Applicants must also submit a financial and economic feasibility study covering the company’s objectives, activities, services, target sectors, market conditions, risk measurement methods, and hedging tools.

Licensed companies must maintain a clear management strategy and effective systems for internal controls, risk management, governance, and outsourcing.

Companies will remain fully responsible for activities outsourced to service providers and technology providers and must comply with the central bank’s relevant outsourcing requirements.

The rules also require companies to appoint a qualified and experienced assessment body to evaluate their technical infrastructure, technology, and computer systems, as well as information security arrangements.

Credit guarantee companies will pay an annual supervisory fee of 100,000 pounds, due each January.

The CBE has given existing credit guarantee companies one year to comply with the new rules. The compliance period will extend to two years for information security and cybersecurity requirements and prudential ratios.

Companies must submit to the central bank’s Banking Supervision and Oversight Sector, within three months, a detailed timetable for implementing the rules, including existing gaps and measures planned to address them.

The new framework is intended to strengthen regulatory oversight of credit guarantee companies and improve their governance, risk management, and internal control systems, the central bank said.