Financial Regulatory Authority and EBRD discuss boosting Egypt's non-banking sector

Islam Azzam, Chairman of the Egyptian Financial Regulatory Authority (FRA), met with Marc Bowman, Vice President of Policies and Partnerships at the European Bank for Reconstruction and Development (EBRD), to discuss enhancing cooperation and the attractiveness of Egypt's non-banking financial sector.

Discussions focused on recent regulatory developments, including a new framework for short selling intended to stimulate the Egyptian Exchange and improve pricing efficiency. The FRA is also finalizing a central lending system and technical integration between Misr Clearance and brokerage firms, expected to launch in the coming weeks. Additionally, the authority is prioritizing a 'Market Maker' mechanism to increase liquidity and stability, which may include stamp duty exemptions and other institutional investment incentives.

To align with international standards, the FRA is implementing Basel III principles for risk management in the insurance and finance sectors and working toward the application of Solvency II standards for the Egyptian insurance sector. The EBRD delegation also shared expertise regarding the potential transformation of the stock exchange into a joint-stock company.