The Central Bank of Egypt (CBE) has brought new bancassurance regulations into effect so as to allow banks to offer this service. CBE announced in a statement that the new regulations and procedures of bancassurance include the necessity of covering risks related to bancassurance and the complete separation of the activities of banks and insurance companies as well as adherence to transparency and disclosure requirements. CBE’s board of directors decided in its session yesterday to approve these regulations and stated that banks that want to offer this service shall submit a request to the control and supervision sector before dealing with insurance companies. The central bank granted banks, which offer bancassurance service, a reprieve of three months to adjust their positions. More»

The Federation of Egyptian Banks’ technical committee will discuss the possibility of establishing a microfinance bank next Wednesday, said Sherif Gamea, general executive manager of FEB. The National Bank of Egypt (NBE) is the one that suggests the idea of setting up a bank that finance micro-enterprises as well as the poor which will be similar to the Grameen microfinance bank in Bangladesh, he elaborated. The technical committee will submit the recommendations to FEB in order to be studied, he added. The Governor of the Central Bank of Egypt (CBE), Hisham Ramez, has revealed to Amwal Al Ghad that the federation will meet next June to discuss the possible methods of financing micro-enterprises. More»

More than 480 leading industry players, thought leaders and key regulators in the international and regional Islamic finance industry will be gathering from the 3rd to the 5th of June 2013 at the Pan Pacific Singapore Hotel, Singapore, for the 4th Annual World Islamic Banking Conference: Asia Summit (WIBC Asia 2013). To be held under the theme "Bridging the World of Islamic Finance: Boosting International Linkages and Cross-Border Opportunities", WIBC Asia 2013, hosted with the official support of the Monetary Authority Singapore, will set the stage for high-level discussions focusing on strengthening international connectivity and capturing cross-border opportunities that will drive further growth in the Islamic finance industry in Asia. The summit will also seek to bolster stronger economic linkages with other key centers for Islamic finance, with a principal focus on forging ties with the Arabian Gulf.Announcing the launch of the 4th annual edition of the event, David McLean, Chief Executive of the World Islamic Banking Conference: Asia Summit (WIBC Asia), noted that “the global Islamic finance industry has over the last decade witnessed a transition into a dynamic, fast growing and competitive form of financial intermediation servicing an increasingly international client base”.   “The Ernst & Young World Islamic Banking Competitiveness Report, which was launched at the 19th Annual World Islamic Banking Conference: Global Summit (WIBC) in Bahrain last December, estimated that global Islamic assets are expected to reach $ 1.8 trillion by 2013”, he said.   According to Mr. McLean, a key factor which will ensure further growth in the Islamic finance industry and boost its ability to successfully compete with the conventional financial system would be improved international connectivity - both in terms of trans-jurisdictional regulatory harmonization and product standardization. More»

In a first-of-its-kind transaction in post-revolution Egypt, Crowell & Moring’s Cairo office has advised the Abu Dhabi Islamic Bank-Egypt in connection with a landmark Islamic Finance facility extended to Maridive and Oil Services S.A.E. MOS (MOIL.CA). Abu Dhabi Islamic Bank- Egypt was the Initial Mandated Lead Arranger (IMLA) and the global coordinator in the deal, coordinating the financing with Abu Dhabi Islamic bank (UAE), Arab African International Bank, Banque du Caire and Arab International Bank. The deal is the first Islamic Ijara structure syndication to take place in the Egyptian market, and, valued at $150 million, is considered one of the largest in the challenging Egyptian banking market. As legal counsel to the initial mandated lead arranger, Crowell & Moring advised the facility providers (the banks) on the structuring and documentation of the transaction. Partner Walid Hegazy, who led the Crowell & Moring team, commented, “This is an important development for our clients, our Cairo office and for Egypt. This Shari’a-compliant facility will open doors for new Islamic finance deals and business ventures, as well as providing a boost for the economy that Egypt greatly needs to prosper. We are thrilled to work with the prestigious Abu Dhabi Islamic Bank and honored to be a part of building something that will impact generations to come in our country. Crowell & Moring looks forward to further developing our presence in Egypt and is excited about the long term potential of the region’s most populous country.” More»

Egypt’s Finance Ministry will offer tomorrow 182- and 364-day treasury-bills. The Ministry said in its website the first offer has maturity of 182 days and is worth EGP 3.5 billion, and the second one has maturity of 364 days and is worth EGP 4 billion. The last week has witnessed a decline of demand for government debt instruments, as the Ministry sold EGP 4.4 billion worth of treasury bills and bonds, while it sought to raise EGP 15.5 billion. The Ministry sells government debt instruments (treasury bonds and bills) so as to finance the widening budget deficit which reached EGP 175.9 billion during (July-March) of FY 2012/2013, registering 10.1 % of the country’s GDP. The budget deficit is expected to reach EGP 200 billion by the end of the current fiscal year. More»