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Arab Finance: The Central Bank of Egypt (CBE) imposed a regulatory fine of EGP 2.1 billion on Credit Agricole Egypt (CIEB) for failing to meet mandatory financing requirements for micro, small, and medium-sized enterprises (MSMEs).
Under CBE regulations, MSMEs financing must account for 25% of a bank’s total loan and credit facilities portfolios.
The penalty followed Credit Agricole Egypt’s non-compliance with this requirement up to May 2025, which triggered an obligation to deposit the financing shortfall as an interest-free amount with the CBE.
By the end of 2025, Credit Agricole Egypt had brought its MSMEs financing into line with regulatory thresholds, enabling it to recover EGP 733 million of the deposited amount.
The remaining balance continues to be governed by applicable regulations.
Also, the regulatory action came as the bank’s financial performance weakened, with its 2025 financial statements showing that net profits fell 13.33% in 2025 to EGP 6.96 billion by the end of December, compared with EGP 8.03 billion in 2024.
The measure aligns with the CBE’s broader policy to expand financing to MSME, which it considers a key engine for economic growth and job creation.
In January, the CBE imposed a fine totaling EGP 1.143 billion on HSBC Egypt.
