The Central Bank of Egypt (CBE) is currently studying creating a guideline directory to support banks wishing to get into micro-finance activities, said Tarek El Kholy, Deputy Governor for Risk Management and Banking Supervision at CBE.
El Kholy pointed at the CBE’s attention to micro-finance activity because of its great role in applying the concept of financial inclusion and integrating the largest number companies in the official economy. He said that there would be a clear definition of micro-finance projects through the new guideline directory, and formulation mechanism of action and cooperation with the credit guarantee companies to support the sector.
The official demanded the CBE governor to assist companies working in the sector to join the official economy and directing them on how to deal with the different government sectors; whether customs, commercial registration, or other.
The CBE started an initiative to launch mini branches to support banking prevalence, and allowed using them in financing small and medium enterprises.
El Kholy expected that this initiative would help apply the financial inclusion principle through attracting a large number of clients. He also demanded banks to educate new clients financially and cooperate widely with commitment departments and internal control, and apply the so-called “Know your Client” rules.
