Egypt - Apply For a Banking Business License

ProcedureEdit

Apply In-Person:

To apply for the Banking Business License, the first step is to book an appropriate name with the Commercial Registrar of Companies and write to the Central Bank of Egypt:Contact link to seek approval for the name.
The applicant then needs to register with the Ministry of Finance, Egypt.
The applicant must attend the first meeting with the designated organizers and keep themselves attended by signing the attendance sheet.
The applicant then needs to submit a prospectus which is a printed statement that describes and forecasts the course or nature of the Commercial bank along with expected risks distributed to the prospective investors.
The applicant needs to write an application requesting to open a blocked subscription account indicating the name of the Bank(s) Branch (es).
A Duly completed application form as specified under the Bank proclamation of the Directives for organizing a Bank and project manager. Attach a Questionnaire test for organizing a bank and project Manager.
The applicant also needs to attach evidences of payment of investigations.
Submit the duly filled application form along with the enclosures as stated in the banking supervision Directives.
The applicant must attach evidence of paid up capital which includes certificate of deposits in a blocked account and evidence of valuation of contribution in Kind if any and a list of names nationality, address, number and value of subscribers’ shares of founder to be published in a local Newspaper in Egypt.
Once the name is approved by the Central Bank of Egypt, register the company and after making a formal application to the Director, Bank Supervision Department, Central Bank of Egypt in a duly completed FORM/CBK/FXD1 attaching the documents mentioned in the “Required Documents” section of this procedure, along with any other information as may be required by the Central Bank of Egypt.
The applicant needs to pay the license fees to the Central Bank of Egypt by banker’s cheque and invite the Central Bank of Egypt to inspect the Banks premises prior to commencement of business.
Upon fulfilment of the above requirements or otherwise the Central Bank shall:
- issue a Banking licence to the applicant; or
- Inform the applicant in writing that the application has been declined and advise the unsuccessful applicant that an appeal to the Central Bank for review of the decision to decline may be lodged within 30 days from the date thereof.
On receiving the license from the Central Bank of Egypt, the applicant must obtain the certificate of commencement of Business from the Commercial registrar of companies, and submit a copy to the Central Bank of Egypt.
Notify the Central Bank of Egypt of its Shareholders, directors and Staff of the Commercial bank including the following details:
- Names
- Residential Address
- Specimen signature
- Recent passport size photos endorsed by the Bank Directors.

Required DocumentsEdit

Completed application and other accompanying documents;
Investigation fee paid during submission of application;
Publish a notice of intention to engage in banking business in widely circulating newspapers;
A minimum of one-fourth of the subscribed shares shall be fully paid in cash;
Minimum paid-up capital paid in cash and deposited in a blocked account in a bank in the name of the prospective bank;
Directors, the chief executive officer and senior executive officers of the bank shall meet the qualification criteria prescribed by the Central Bank of Egypt;
The premises, security arrangements and cash vault meeting Central Bank of Egypt standard.
A duly completed application form.
Proper book keeping Register
non-refundable application fee of EGP 10,000 (bankers cheque payable to the Central Bank of Egypt);
a certified copy of a statement of affairs of the applicant;
a certified copy of the applicants memorandum and articles of association;
a certified copy of the applicants certificate of incorporation;
a feasibility study including financial projections for three years (balance sheet, profit and loss account and cash flow statements), organizational structure, physical location and postal address;
bank statements of the Commercial Banks shareholders and directors for a period of six months prior to the date of application;
duly completed fit and proper forms for the shareholders, directors and principal officers of the bank;
credit reports from a credit reference bureau for the shareholders, directors and the principal officers of the Bank;
a declaration by the applicant that none of its directors and/or shareholders has ever been declared bankrupt, participated in the management of a collapsed institution, convicted by any court of competent jurisdiction in Egypt or elsewhere of a criminal offence involving fraud, money laundering, tax evasion, or any other act of dishonesty;
a declaration by the applicant that none of its directors and/or shareholders holds a similar position or role in any other Commercial Banks;
an undertaking by the applicant to comply with the provisions of the Central Bank of Egypt Act, the Regulations, the Commercial Banks Guidelines and any instructions/ directions issued by the Central Bank of Egypt regarding the establishment and operations of Commercial bank at all times; and
A Business plan stating, financial analysis, banking sectoral analysis, business Environment, organization charts, strategic and operation plan, source of capital, accounting policies, technology competency, products and services.

Office Locations & ContactsEdit

Ministry of Finance
Arab Republic Of Egypt
Address:
Finance Ministry Towers - Ramses Extension - Nasr City – Cairo
Email ID: [email protected]
Phone: 02/23428830
Fax: 02/23428830
Contact link: Link

Central Bank of Egypt
Address: Head Office 31,
Kasr El Nil St., Cairo, EGYPT
Telephone: 20 2 27702770; 20 2 27701770; 20 2 25976000
Contact link: Link

Regional Banks Registered with the Central Bank of Egypt: Link

EligibilityEdit

The applicant must be of an Egyptian Nationality or foreign resident but residing in Egypt.
Any Individual or company registered for banking Business in Egypt with the registrar of Companies.
Commercial Banks may be established by any eligible corporate body or corporation duly licensed by the Central Bank of Egypt to accept Deposit, lend money, issue money to clients, buy foreign currency and draft and sell foreign currency.

FeesEdit

The license fee is EGP 30,000.

ValidityEdit

The license is valid for 5 years.

Documents to UseEdit

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Sample DocumentsEdit

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Processing TimeEdit

The process takes around 30 days.

InstructionsEdit

The Central Bank has broad powers in the affairs of banks. It can suspend or remove a CEO, director or other senior executives,
It also can suspend voting right of an influential shareholder when he fails to fulfill the ethical requirements of the Central Bank.
No person shall carry out a Banking business unless he/she is in possession of a Banking Business License.
A person who fails to contravene or fail to comply with section 1 shall be guilty of any offence and shall be dealt with in accordance with Financial laws.
Banks may only terminate their activities after obtaining the approval of the Central Bank, and the Central Bank has the right to reject the appointment of the members of the board of directors of banks, and of their top managers.
The Central Bank has the right to cancel the registration of banks and branches of foreign banks operating in Egypt if they contravene the Banking Law, or if they adopt policies that harm the general economic interest or the interest of their depositors or their shareholders.

Required InformationEdit

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e.g.
1. Date of Birth.
2. City or Country of Birth.

Need for the DocumentEdit

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Information which might helpEdit

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External LinksEdit

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OthersEdit

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