Dr. Nasser Hussein
The International Monetary Fund (IMF) said that in February 2025, the Central Bank of Egypt had commissioned two internationally recognized companies to carry out an independent evaluation of the policies, procedures and controls of the two largest State-owned banks in a step aimed at strengthening governance practices and supporting fair competition with private banks.
In the report of the fifth and sixth audits of Egypt ' s programme, UNFPA made clear «Facilitation of the extended fund»And the first review is, «Facilitating flexibility and sustainability»This step is also aimed at protecting financial safety and ensuring the effectiveness of the market-based cash policy transition mechanism.
The report indicated that the terms of reference for these evaluations had been prepared in consultation with IMF staff.
UNFPA emphasized that the promotion of governance and competition practices in the banking sector remains a key priority, particularly in the light of the large volume of State-owned banks, which requires the application of strong governance standards to maintain the integrity of the financial sector, to ensure the transition of monetary policy through market mechanisms and to promote fair competition with private banks.
In this context, the report indicated that one study had been completed, while the Egyptian authorities had committed to completing the second study by February 2026.
The results of a draft of the two studies were also made available to UNFPA staff in December 2025, and were sent to senior management of the Banks under review, while the results of the second study are still under preparation.
To ensure progress within the programme framework, the Central Bank intends to direct State-owned banks to fill the gaps identified in risk management practices by the end of September 2026.
The Central Bank is currently evaluating the results of the first study of appropriate oversight actions as part of a comprehensive corrective plan based on the results of the two studies, with details of the plan being prepared by the end of March 2026.
A final report is expected to be issued by September 2026, indicating progress in the implementation of corrective actions and addressing possible regulatory irregularities, thereby enhancing the viability of the banking sector and supporting the effectiveness of monetary policy.
