ArabFinance: Lenders for small and medium-sized enterprises (SMEs) are currently required to have appropriate risk assessment and capital adequacy protocols, according to a recent regulations form published on the Egyptian Gazette.

Lenders have to get an approval once a single party would hold 25% or more of the lending entity.

The Financial regulatory Authority previously said financial institutions must hold no less than 25% in the lending entities.

The lenders also need to follow Egyptian Accounting Standards.

The capital adequacy ratio should not be less than 12%, while the loan term has to be five years or more.

Liquidity ratio should not be less that 100% of the net external cash inflows within 30 days.

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