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May 07, 2017

The Central Bank of Egypt (CBE) published the methodology to identify domestic systemically important banks (D-SIBs). The methodology involves sampling of banks according to the size standard of "total exposure" used in calculating leverage ratio. Indicators such as size of the bank, degree of association with other banks in the country, degree of development or complexity of the bank's activities are also examined, post which these key indicators are assigned relative weights.

This work is in light of the continuous efforts of CBE to develop the banking sector to enhance its safety and stability and to support its active role in contributing to the overall and sustainable economic growth of the country. The supervisory board of CBE applies the defined methodology and formulae and informs the banks of systemic interest locally with the results. The methodology shall be reviewed and updated by CBE at regular intervals, stretching to a maximum of three years. These regulations shall apply to banks operating in Egypt, with effect from January 01, 2019.

 

Related Link: Circular (PDF)

Keywords: Banking, Egypt, CBE, Systemic Risk, D-SIB