Stable Rules Keep Banks Safe: El Sakka

Mahmoud El Sakka, chairman of the Egyptian Credit & Risk Association (ECRA), called for maintaining the rules and regulations stable, keeping banking sector independent and studying the economic decisions adequately before issuing them as the banking sector is one of the most sectors being affected by economic decisions.

The Egyptian banking sector still suffers from small savings rates as compared to the volume of GNP, El Sakka added.

Despite generating good yields, most banks retreat from financing small and medium enterprises (SMEs), because they do not have human cadres qualified to conduct financial transactions with SMEs, he added. The banks mainly depend on the feasibility studies in offering finances, he continued.

The Egyptian banking sector has been developed in the last years, as the non-performing loans have sharply dropped on the last ten years, he affirmed.