The Central Bank of Egypt (CBE) has signed Thursday a Memorandum of Understanding (MoU) with the Central Bank of the UAE (CBUAE) to strengthen supervisory cooperation.
The MoU outlines the mechanisms of information exchange to facilitate the performance of their supervisory and financial stability mandates.
It also establishes the cooperation mechanisms on licensing, the ownership structure of Licensed Financial Institutions (LFIs), authorization of acquisitions, examinations of LFIs, information exchange and the necessary approvals for licensing requests.
The central banks of both countries will inform each other of any significant changes in the regulatory requirements of their jurisdictions, state news agency WAM reported.
“The banks have also agreed to cooperate in executing their mandates to prevent money laundering and the financing of terrorism by LFIs under their supervision,” it said, adding that MoU also stipulates the confidentiality of requests and information exchanged between both parties.
Commenting on the deal, Khaled Mohamed Balama, Governor of the CBUAE, said: "The signing of the MoU with the Central Bank of Egypt will allow us to comply with best international practices in supervising cross-border banking operations. This agreement comes in the right time, given the deepening ties between our financial systems and our economies."
For his part, Tarek Amer, Governor of Egypt Central Bank, said Egypt is keen to strengthen collaboration with Arab nations, in a manner that reflects on the welfares of its people and achieves the goals of mutual economic development.
The memorandum signed with the UAE Central Bank will accomplish the coveted cooperation and strengthen the robust relationship between the two countries, he added.
Separately, Egypt's Financial Regulatory Authority has given Banque du Caire and three other listed companies until the end of the year to sell shares on the stock exchange.
The companies are required to submit by Sept. 30 a timeline approved by the stock exchange's board for how they will implement the offerings.
An initial public offering (IPO) for Banque du Caire, which listed on the exchange in February 2017, would represent the biggest sale of Egyptian state assets since 2006.
Meanwhile, the benchmark Egyptian Exchange (EGX) declined 0.62 percent on Thursday’s session, to end at 9,980 points.