SHARM EL SHEIKH, Egypt – The Central Bank of Egypt (CBE) has promulgated a raft of regulatory directives aimed at reinforcing risk management frameworks, bolstering operational resilience across banks, and facilitating effective mitigation of associated risks.
Speaking on behalf of CBE Governor Hassan Abdullah at the opening of the 6th Annual Forum for Chief Risk Officers (CROS) in Arab Banks, held in Sharm El Sheikh and organized by the Union of Arab Banks, Essam Omar, CBE’s Assistant Deputy Governor, said that the CBE’s recent regulatory initiatives designed to bolster financial stability and facilitate the digital transformation of the banking sector.
Omar noted that the CBE has introduced a series of regulatory directives designed to reinforce operational risk management frameworks, strengthen capital adequacy standards, and mandate that banks maintain, regularly test, and update their business continuity plans.
He underlined the issuance of recovery plan directives intended to ensure banks are sufficiently prepared for severe disruptions, thereby safeguarding their capacity to sustain critical operations and continue serving the financial sector.
The CBE has developed the first comprehensive cybersecurity regulatory framework for the banking and financial sector, establishing clear benchmarks to evaluate the maturity and effectiveness of cybersecurity technologies and practices.
This framework, together with ongoing enhancements to application review systems, underscores the Bank’s proactive approach to digital governance and its steadfast commitment to mitigating cybersecurity risks.
In the context of crisis management, Omar noted that the Central Bank has established emergency liquidity regulations and enhanced supervisory review systems, integrating early warning indicators and intervention mechanisms to effectively manage distressed banks.
Recognizing the increasing importance of digital banking, the Bank has introduced dedicated licensing and supervisory regulations for digital banks, designed to promote the secure and risk-managed growth of digital financial services.
Omar underlined the Central Bank’s pivotal role in strengthening banks’ ongoing risk management efforts at both the institutional and sector-wide levels.
Through its supervisory actions, the CBE supports internal risk control systems by implementing corrective measures, reinforcing capital adequacy standards, and enhancing governance frameworks.
