The Central Bank of Egypt (CBE) has instructed banks not to grant any credit facilities to customers for the purpose of financing the payment of capital in companies under incorporation or increases in share capital.

 

The directive also prohibits the use of bank financing to fund cash dividend distributions and employee bonus shares, as part of efforts to strengthen oversight of credit facilities provided by the banking sector.

 

In a circular issued following approval by the CBE Board of Directors in its meeting held on 17 June 2026, the central bank said the decision aims to ensure that credit facilities are directed toward financing customers’ productive economic activities, in line with sound banking principles and lending standards.

 

The CBE said the decision builds on previous instructions issued in March 2003, which prohibited granting short-term credit lines to finance the capital of companies under incorporation or to complete legally required capital contributions, as well as guidance issued in September 2021 banning credit facilities for financing cash dividends to employees or shareholders.

 

The central bank reaffirmed that banks must comply with the requirement not to provide financing for capital payments in newly established companies or capital increases, nor for cash dividends or employee bonus shares, in order to ensure credit is directed toward operational and investment-related purposes.