Deals
Egypt Bank Mergers on Cards If Capital Requirements Raised
- Draft law hikes necessary amount tenfold to 5 billion pounds
- M&As seen possible if smaller lenders can’t meet requirements
Pedestrians walk past an advertisement displaying a large dollar sign and U.S. dollar banknotes outside a bank in Cairo.
Photographer: Shawn Baldwin/Bloomberg
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Egypt’s new banking law may raise the minimum capital requirements for lenders tenfold, state media reported on Tuesday, in a move that could pave the way for mergers among the country’s smaller banks.
A draft of the law raises the amount of capital needed to 5 billion pounds ($294 million) from 500 million, the Middle East News Agency reported, citing a central bank official it didn’t identify. Branches of foreign banks will need at least $150 million, up from $50 million.