(MENAFN- Daily News Egypt) The Central Bank of Egypt (CBE) has authorised banks operating in the Egyptian market to own unlimited shares in payment processing companies.
The CBE had previously prohibited banks from acquiring more than 40% of a non-financial company's issued capital, while allowing the uncapped ownership of shares in financial companies.
At the time, the CBE had set a definition on financial companies in accordance with the provisions of the decision, in a periodical issued on 24 August 2004.
In a letter to banks operating in Egypt, the CBE said that allowing banks uncapped share ownership in payment processing companies comes in light of developments within the country's banking scene.
The CBE has obliged banks to provide full data on the company to which they are contributing more than 5% of the issued capital, whether it is a financial or non-financial company. This provision of data would take place at least two months before taking actual measures to contribute.
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