The amendments come within the bank’s framework of strengthening the governance practices in accordance to international best practices
The Central Bank of Egypt (CBE) issued new instructions regarding bank governance, including the formation of banks’ board of directors, chairperson and managing directors’ tasks and responsibilities, as well as emphasizing the need for more female representation on boards.
Aiming to enhance corporate governance practices, the CBE stipulated the necessity of having an appropriate number of qualified members for their positions, taking into account the appropriate diversity of abilities, skills, experience and knowledge.
The central bank stressed that there must be a minimum of 2 female board members on a bank’s board of directors.
It also noted the importance of balancing the board members, pointing out that the majority of the board’s members should be non-executives. It states that boards must include 2 executive members at most, with at least 2 independent non-executive members and the rest as non-executives.
The amendments, announced by Governor of the Central Bank of Egypt, Tarek Amer, come within the bank’s framework of strengthening the governance practices in accordance to international best practices.
The Central bank recently announced its regulations for Egypt’s instant payment network (IPN), governing the rules and responsibilities for issuing banks, payment service providers and receiving banks, including licensing, risk management, data protection, and security.
CBE’s Amer was recently named as one of the world’s top 10 central bank governors for 2021 by Global Finance Magazine.
