Egypt’s ruling Supreme Council of the Armed Forces on Sunday issued a decree amending a number of provisions in laws relating to the Central Bank and the general banking system, based on CB demands to increase transparency and improve bank performance.
Informed sources told Al-Masry Al-Youm that the SCAF approved three amendments of 15 draft amendments submitted by the Central Bank of Egypt (CBE), and that the elected parliament will consider the remaining drafts.
In a statement to Al-Masry Al-Youm on Sunday, the CBE said the amendment ensures that controls are set in order to prevent conflicts of interest among members of the CBE’s Board of Directors, in order to ensure their impartiality and independence in accordance with international standards and norms.
The bank explained that according to the decree, board members should have no interests that conflict with their duties or requirements of impartiality, independence and confidentiality of information they receive by virtue of their membership in the CBE’s Board of Directors.
According to the statement, the decree provides that the CBE’s Board of Directors should not be formed of bank heads, board members, employees or professional service providers or consultants of commercial banks or finance companies.
The amendments also include a provision which reduces the number of CBE board members from 15 to nine to include the governor, his two deputies, the president of the general authority for financial control, a representative of the Minister of Finance and four experienced members who meet the requirement of having no conflict of interest.
The source explained that in the case that the CBE Governor is absent, the senior deputy will take his place and if the senior deputy is absent, the junior deputy will take his place.
Meanwhile, CBE Governor Farouk al-Oqda welcomed the amendment, saying it takes into account standards of transparency and international governance.
Translated from the Arabic Edition