Egypt Financial Regulatory Authority reviews first Basel III-aligned solvency standards and non-bank finance reforms with World Bank

The Egypt Financial Regulatory Authority (FRA) held an expanded meeting with World Bank representatives, joined by participants from the Central Bank of Egypt, to review current supervisory capabilities and legislative pathways for oversight of non-bank financing providers serving medium, small and micro enterprises, as well as civil society organisations and start-ups. Discussions focused on recently approved regulatory reforms covering capital and solvency requirements, innovation and digital transformation, and transparency and client protection. The meeting examined FRA requirements on minimum capital and licensing standards for non-bank finance activities, particularly MSME and microfinance, alongside structural challenges facing finance providers and gaps in access to finance. Participants also discussed opportunities to improve the business environment following the launch of the FRA Sandbox, positioned as a controlled setting for testing and approving new digital solutions, including fintech models that use artificial intelligence in risk management, customer experience and product design. Technical aspects of FRA Board Decision No. 137 of 2025 were covered, introducing Basel III-compliant solvency standards described as the first of their kind, aimed at strengthening non-bank finance companies’ financial positions and risk resilience, alongside the “responsible pricing index” intended to improve disclosure, data quality and governance by providing a nationwide reference for financing prices via the FRA website.