The Central Bank of Egypt has imposed a EGP 2.1 billion regulatory penalty, in the form of a non-interest-bearing deposit, on Crédit Agricole Egypt, listed on the Egyptian Exchange as CIEB, for failing to meet the mandatory requirement that banks allocate at least 25% of their total loan and credit facilities portfolio to micro, small and medium-sized enterprises. The penalty is equivalent to approximately $45 million.
Under CBE rules, institutions that fall short of the MSME threshold are not simply assessed a cash fine. Instead, they are obliged to deposit the financing shortfall as a non-interest-bearing amount with the central bank.
NON-COMPLIANCE PERSISTED UNTIL MAY 2025
Crédit Agricole Egypt's non-compliance with the MSME lending requirement persisted until May 2025, and the bank lodged the shortfall as a non-interest-bearing deposit with the CBE at the end of its 2025 financial year. By the end of 2025 it had achieved full compliance with the 25% requirement. That progress allowed it to recover EGP 733 million of the deposited amount from the central bank.
The bank's French parent, Crédit Agricole Group, operates in Egypt through CIEB.