Result Based Management Framework - METAC

20
II. EGYPT
A. Banking Supervision
Past Activities
The Central Bank of Egypt (CBE) had many TA agreements with other providers and
agencies, in particular some European central banks, the European Union (EU) and
USAID. As such, METAC did not provide TA to Egypt in the area of banking
supervision yet.
With these TA agreements, a banking reform plan was implemented in order to
restructure the banking sector and enhance financial intermediation. Two TA programs on
banking supervision were also implemented in order to strengthen the capabilities and
skills of Egyptian banking supervisors and to upgrade the regulatory framework and
supervisory tools in line with Basel II Accord.
Objectives
Work Program
Although the supervisory and regulatory frameworks were improved to a great extent
over the last six years, the CBE still needs significant TA to keep abreast with the latest
developments in the banking supervision industry and to further strengthen its prudential
oversight framework.
The main objective of the TA to be provided by METAC would be to introduce new and
advanced supervisory tools and techniques that would enable the CBE to enhance its
regulatory and supervisory framework and to align it with the international standards and
best practices, in particular Basel II Accord and Basel III reforms.
Outcomes
The CBE has a strong regulatory and supervisory framework that is in line with
the latest Basel principles on banking supervision including Basel II and Basel III.
The CBE supervisors are well trained and possess high technical supervisory
skills that allow them to monitor effectively the implementation of the regulations
issued by the CBE and to assess the soundness of the Egyptian banking system.
The CBE has a well functioning Early Warning System (EWS) model that enables
its supervisors to make accurate assessments and forecasts of the financial
soundness of the banks operating in Egypt and the banking system.