The purpose of this resolution is to ensure the companies’ financial solvency and ability to provide their services efficiently
The Financial Regulatory Authority (FRA) issued Resolution No. 268 of 2023 to set a minimum capital of EGP 15 million for financial technology (FinTech) startups who wants to practice non-banking financing activities.
The purpose of this resolution is to ensure the companies’ financial solvency and ability to provide their services efficiently.
As per the FRA's resolution, the company is granted a two-year timeframe, starting with a capital of EGP 15 million, to fulfill the remaining licensing requirements and subsequently increase its capital as required for each specific non-banking financing activity.
Furthermore, the company must commence its non-banking financing activity within a maximum period of two months from the date of license issuance.
This initiative is part of the FRA's strategy to enhance the business environment for non-banking financial firms utilizing financial technology, particularly emerging ones.
The FRA aims to streamline procedures and reduce costs for startups, thereby fostering their growth and contributing to the overall development of the financial sector and the national economy.
The non-banking financial sector is recognized as being complementary to the traditional banking sector for its role in the mobilization of savings, generating sources of funding for economic ventures and individuals, enhancing the flow of investments, protecting rights and property, and bolstering investors’ confidence, contributing towards economic development.
