The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Purges set banks on new course

The removal of old-guard managers from Egypt's state banks, proposals to clean up NPLs and new capital rules are shaping up the banks for a sell-off.

 

SENIOR BANK EXECUTIVES and leading businessmen were purged in a series of arrests in Egypt earlier this year. Some have faced trial and even imprisonment with hard labour after allegations of financial wrongdoing. It's a startling approach to reforming the country's financial sector.

Falling growth rates, ever more non-performing loans and a series of high-profile scandals have taken their toll on Egyptian banking. But for years little progress was made towards addressing these issues. Now the Egyptian government has begun to take decisive action. And though this is shocking, bankers are feeling optimistic.

The government began its reform efforts with a serious assault on corruption at the start of the year and most recently with its muddled attempt to allow the Egyptian pound to float freely [see Draconian measures follow dirty float, this issue]. Following a mysterious IMF report that was never made public, over 30 top bankers, businessmen, government officials and lawmakers were arrested for alleged involvement in illegal financial transactions.

Among those taken into custody and facing investigation are the heads of two of the country's leading banks: Muhammad Abu Al-Fath, the former managing director of Banque du Caire, and the former head of Misr Exterior Bank, Abdullah Tayel.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree