The Central Bank of Egypt (CBE) decided to raise the reserve requirement ratio of banks from 10% to 14%. The bank announced on Tuesday that this resolution will be applied starting 10 October.
The CBE had maintained the reserve requirement ratio at 14% since 2001 until 2012, which was reduced gradually after the 25 January Revolution by 4% to reach 10% in order to support the banking sector and to enable banks to meet the increased demand for liquidity.
With the recent strong financial and performance indicators of Egyptian banks, in addition to the growing profitability, which was reflected in the financial and monetary stability, the CBE found it was to increase the reserve requirement to its previous levels.
