Central Bank of Egypt Issues New Supervisory Regulations for Bank Investments in Corporate and Securitization Bonds

The Central Bank of Egypt (CBE) has introduced new supervisory regulations for banks' investments in corporate and securitization bonds to enhance risk management and banking system stability. The rules require banks to adopt clear internal investment policies, set maximum limits for total bond investments, establish concentration limits by economic sector and by issuing and originating companies, and mandate a minimum acceptable credit rating of no less than BBB- for bond investments. Banks also need prior CBE approval for granting credit secured by such bonds and must submit comprehensive cash flow analyses. A six-month grace period is provided for banks to align their positions with the new regulations.