The Egypt Financial Regulatory Authority announced it has established a Financial Stability Unit to support sustainable development of the non-banking financial sector and to curb systemic risks, as its chairman Mohamed Farid set out priorities for more proactive risk identification and management during discussions at the Financial Stability Board’s Middle East and North Africa Regional Consultative Group meetings in Sharm El Sheikh. Farid highlighted the growing importance of non-bank financial institutions globally, citing that their share of global financial assets has risen from around 40% to close to 50% since the global financial crisis and stood at 49.1% after an 8.5% increase in size in 2024. He argued that effective risk monitoring requires combining regulatory supervision with tailored surveillance indicators, supported by stronger use of technology and data analytics and by closing data gaps, including to assess leverage-related vulnerabilities flagged as a key risk in IOSCO’s 2025–2026 risk outlook. The approach also emphasises transparency and accountability through disclosure requirements for asset managers, insurers and hedge funds, and developing indicators that capture interconnectedness within the non-bank sector and with the wider financial system, alongside closer collaboration with firms and academic researchers.
Egypt Financial Regulatory Authority 2025-02-02
Egypt Financial Regulatory Authority launches a Financial Stability Unit to strengthen monitoring of non-bank finance risks
The Egypt Financial Regulatory Authority has established a Financial Stability Unit to enhance sustainable development and mitigate systemic risks in the non-banking financial sector. Chairman Mohamed Farid emphasized proactive risk identification, combining regulatory supervision with technology and data analytics, and closing data gaps. The strategy includes transparency through disclosure requirements and collaboration with firms and researchers to address leverage-related vulnerabilities and interconnectedness.