By: Eslam Fadl

Cairo – Mubasher: The Central Bank of Egypt (CBE) is encouraging national banks to apply the international regulatory framework Basel III.

Egyptian banks are on track to introduce Basel III in the meantime, banking experts said.

Basel III is a global regulatory accord that aims at boosting the efficiency of banks and improving them, experts highlighted, adding that the accord came out as a result of the global economic crisis.

They stressed that the introduction of Basel III at Egyptian lenders will be completed this year to apply Basel IV which cement the banks’ positions and open horizons for the banking sector.

In the same vein, former vice chairman of Banque Misr said that banks operating in the Egyptian markets will apply Basel III this year.

Basel III reinforces the international capital standards and helps maintain financial stability at banks, Sahar Al-Damaty told Mubasher.

Al-Damaty noted that the CBE will implement Basel IV following the introduction of Basel III.

She remarked that Basel III strengthens the financial positions of banks and boost their provisions and capital.

The new accord would not impact the financial results of Egyptian banks over the coming period, she emphasised.

For his part, Hisham Ibrahim, professor of financing and investment at Cairo University, said that banks operating in Egypt are about to apply Basel III this year.

The global economic crisis has propelled the international banking system to apply strict standards in a bid to avoid risks such as Basel III that require lenders to keep adequate capital to face any future financial challenges, Ibrahim highlighted.

Translated by: Mai Ezz El-Din