The new draft law of the Central Bank of Egypt (CBE)، banks and the banking sector obliges the Central Bank to increase its capital to EGP 20 billion، an official source with the bank said Saturday.
In statements to the state-owned Middle East and North Africa (MENA) news agency، the source added that the current law has set the CBE’s minimum capital at EGP 4 billion.
It also authorized the CBE’s board، in coordination with the Ministry of Finance، to increase its capital to EGP 16 billion during the past years، the source added.
The source pointed out that the draft law defined the CBE as a supervisory body with a general legal status reporting to the President of the Republic.
The source added that the CBE also enjoys technical، financial and administrative independence، noting that the draft law set the bank’s objectives in accordance with the provisions of the constitution to ensure the integrity of the monetary and banking systems and the autonomy of prices within the framework of the state’s general economic policy.
He pointed out that the draft law re-considered the mechanism of appointing the Governor of the Central Bank of Egypt to comply with the provisions of the new constitution، adding that the governor will be appointed by the President for only a one-time renewable term of 4 years after getting the twp-thirds approval of the House of Representatives.