Then New Banking Law has extended the regulatory and supervisory power of the Central Bank. Kindly compare between the new banking law and the old banking law mentioning the point of difference.

Law No. 194 for the year 2020 has been ratified on 15 September 2020 and became effective as of 16 September 2020. The Law abolishes law No. 88 for the year 2003 promulgating the law of the Central Bank of Egypt (the Old Law)

The new banking law 2020 Laws and Regulations Introduction: Law No. 194 for the year 2020 has been ratified on 15 September 2020 and became effective as of 16 September 2020. The Law abolishes law No. 88 for the year 2003 promulgating the law of the Central Bank of Egypt (the "Old Law"). The new law is expected to stabilize the banking and monetary sectors and develop the banking sector's performance. The Law also aims to enhance the independence of the CBE and increase its supervision of the banking sector in Egypt. The Law sets a maximum period of one year for banks and two years for the CBE to comply with and adopt its term Expanding CBE supervisory and regulatory role The new law expand the CBE with the broadest powers and authorities to supervise and regulate the banking sector and ensures the CBE's independence The New Banking Law details those powers further and explicitly adds powers relating to: settlement of status for distressed banks", protection of client's rights and settling related disputes", protection and consolidation of competition and prohibition of monopolistic practices The CBE more powers to intervene in the banking products and practices of Egyptian banks and Egyptian branches of foreign banks Continue: Expanding CBE Supervisory role The New Banking Law has set criteria that should be fulfilled for the appointment executives. Article 120 of the New Banking Law provides that, without prejudice to the authority of the bank's general assembly, the main executives (defined under the New Banking Law as chairman of the board, board members, and executive managers) must now be approved by the Governor of the CBE (as opposed to the CBE expressing its opinion on those under the Previous Banking Law), as to ensure qualifications criteria are satisfied. The same applies to managers of foreign banks branches and their deputies Under the Law, the term of the governor of the CBE is 4 years, which can only be renewed once. The Old Law did not include a time limit on the term of the governor The Law introduces an entire chapter governing the relationship of the CBE with corresponding foreign entities. To this effect, the Law authorizes the CBE to enter into agreements and protocols with foreign entities that would allow foreign entities to inspect branches of foreign banks that are registered with the CBE and the CBE to inspect branches of Egyptian banks registered abroad, while complying with the confidentiality rules stipulated under the law. The reporting requirements from banks to the CBE has also been expanded according to the New Banking Law. The requirement to provide periodical risk reports in relation to the investment and credit portfolios of the banks is now a quarterly requirement instead of being semi-annually according to the Previous Banking Law. The information relating to banks' financial position now takes a daily, weekly and monthly format (as opposed to monthly only under the Previous Banking Law). In addition, article 129 of the New Banking Law now authorizes the CBE to request for any information from the relevant Egyptian bank's parent, sister companies or affiliates. It is worth noting that the supervision fee payable to the CBE has been doubled from EGP 1 for every EGP 10,000 (as stated in the banks average financial position) to EGP 2 for every EGP 10,000 Capital Requirements The New Banking Law has raised the minimum capital requirements from the Previous Banking Law EGP 500 million (for Egyptian banks) to EGP 5 billion and USD 50 million (for branches of foreign banks) to USD 150 million. It is worth noting that digital banks" and specialized banks" may be excluded from this minimum capitalization requirement (article 64). The New Banking Law obliges banks to notify the CBE in case (1) any nature or juridical person, or their related parties owns more than 5% of the bank's issued capital, or 5% of the bank's voting rights, or any ratio that leads to the effective control over the bank, and for each increase or decrease thereof by 1%; and (ii) any major shareholders ownership falls below authorized ownership limit. regarding the bank's capital requirements under the Previous Banking Law, banks must have had (in addition to its capital),"monies sufficient to satisfy its obligations. This has been replaced under the New Banking Law by "assets", hence including immovable property in the calculation of what a bank should hold versus its obligations Both the Previous Banking Law and the New Banking Law allow for a bank to calculate "monies" held by that bank outside of Egypt Assistance of the banks in financial distress The Law introduces a chapter that regulates banks in financial distress instead of the bankruptcy law No. 11 for the year 2018. The Law authorizes the CBE to declare a bank to be in financial distress by a decree valid for one year from its publishing date which can be renewed for a similar period with a maximum period of three years from the issuance date of the decree Further, the Board of Directors of the CBE may establish a fund to finance the settlement procedures of banks in financial distress. All banks registered with the CBE will be members of this fund and its resources will be from the contributions of the member banks, Creation of a licensing regime for fintech and e-payments' activities the Previous Banking Law had not expressly regulated electronic payments service providers and FinTech companies. The New Banking Law sets forth conditions and procedures for licensing of payment systems operators and payment service providers, their respective operating rules and their obligation to provide protection for the E-Systems used, their final settlements, and the supervision and control of the CBE. Any electronic payments service provider must be licensed by the CBE. The service provider must comply with certain requirements set out by the board of the CBE. As a general requirement, the provider must deposit a security whose amount is subject to the discretion of the CBE. The new banking law 2020 Laws and Regulations Introduction: Law No. 194 for the year 2020 has been ratified on 15 September 2020 and became effective as of 16 September 2020. The Law abolishes law No. 88 for the year 2003 promulgating the law of the Central Bank of Egypt (the "Old Law"). The new law is expected to stabilize the banking and monetary sectors and develop the banking sector's performance. The Law also aims to enhance the independence of the CBE and increase its supervision of the banking sector in Egypt. The Law sets a maximum period of one year for banks and two years for the CBE to comply with and adopt its term Expanding CBE supervisory and regulatory role The new law expand the CBE with the broadest powers and authorities to supervise and regulate the banking sector and ensures the CBE's independence The New Banking Law details those powers further and explicitly adds powers relating to: settlement of status for distressed banks", protection of client's rights and settling related disputes", protection and consolidation of competition and prohibition of monopolistic practices The CBE more powers to intervene in the banking products and practices of Egyptian banks and Egyptian branches of foreign banks Continue: Expanding CBE Supervisory role The New Banking Law has set criteria that should be fulfilled for the appointment executives. Article 120 of the New Banking Law provides that, without prejudice to the authority of the bank's general assembly, the main executives (defined under the New Banking Law as chairman of the board, board members, and executive managers) must now be approved by the Governor of the CBE (as opposed to the CBE expressing its opinion on those under the Previous Banking Law), as to ensure qualifications criteria are satisfied. The same applies to managers of foreign banks branches and their deputies Under the Law, the term of the governor of the CBE is 4 years, which can only be renewed once. The Old Law did not include a time limit on the term of the governor The Law introduces an entire chapter governing the relationship of the CBE with corresponding foreign entities. To this effect, the Law authorizes the CBE to enter into agreements and protocols with foreign entities that would allow foreign entities to inspect branches of foreign banks that are registered with the CBE and the CBE to inspect branches of Egyptian banks registered abroad, while complying with the confidentiality rules stipulated under the law. The reporting requirements from banks to the CBE has also been expanded according to the New Banking Law. The requirement to provide periodical risk reports in relation to the investment and credit portfolios of the banks is now a quarterly requirement instead of being semi-annually according to the Previous Banking Law. The information relating to banks' financial position now takes a daily, weekly and monthly format (as opposed to monthly only under the Previous Banking Law). In addition, article 129 of the New Banking Law now authorizes the CBE to request for any information from the relevant Egyptian bank's parent, sister companies or affiliates. It is worth noting that the supervision fee payable to the CBE has been doubled from EGP 1 for every EGP 10,000 (as stated in the banks average financial position) to EGP 2 for every EGP 10,000 Capital Requirements The New Banking Law has raised the minimum capital requirements from the Previous Banking Law EGP 500 million (for Egyptian banks) to EGP 5 billion and USD 50 million (for branches of foreign banks) to USD 150 million. It is worth noting that digital banks" and specialized banks" may be excluded from this minimum capitalization requirement (article 64). The New Banking Law obliges banks to notify the CBE in case (1) any nature or juridical person, or their related parties owns more than 5% of the bank's issued capital, or 5% of the bank's voting rights, or any ratio that leads to the effective control over the bank, and for each increase or decrease thereof by 1%; and (ii) any major shareholders ownership falls below authorized ownership limit. regarding the bank's capital requirements under the Previous Banking Law, banks must have had (in addition to its capital),"monies sufficient to satisfy its obligations. This has been replaced under the New Banking Law by "assets", hence including immovable property in the calculation of what a bank should hold versus its obligations Both the Previous Banking Law and the New Banking Law allow for a bank to calculate "monies" held by that bank outside of Egypt Assistance of the banks in financial distress The Law introduces a chapter that regulates banks in financial distress instead of the bankruptcy law No. 11 for the year 2018. The Law authorizes the CBE to declare a bank to be in financial distress by a decree valid for one year from its publishing date which can be renewed for a similar period with a maximum period of three years from the issuance date of the decree Further, the Board of Directors of the CBE may establish a fund to finance the settlement procedures of banks in financial distress. All banks registered with the CBE will be members of this fund and its resources will be from the contributions of the member banks, Creation of a licensing regime for fintech and e-payments' activities the Previous Banking Law had not expressly regulated electronic payments service providers and FinTech companies. The New Banking Law sets forth conditions and procedures for licensing of payment systems operators and payment service providers, their respective operating rules and their obligation to provide protection for the E-Systems used, their final settlements, and the supervision and control of the CBE. Any electronic payments service provider must be licensed by the CBE. The service provider must comply with certain requirements set out by the board of the CBE. As a general requirement, the provider must deposit a security whose amount is subject to the discretion of the CBE