The Central Bank of Egypt has imposed a fine of EGP 1 billion on First Abu Dhabi Bank Misr, Asharq Business reported, which would be the largest penalty ever levied on a bank in Egypt. The fine reportedly relates to violations involving credit facilities that FAB Misr extended to Beltone Holding.
The fine, equivalent to approximately $21 million at prevailing exchange rates, represents nearly four per cent of FAB Misr's reported net income of EGP 26.3 billion for 2024. Asharq Business also reported that the CBE ordered the transfer of a senior credit officer at FAB Misr.
ENFORCEMENT SWEEP CATCHES MULTIPLE LENDERS
FAB Misr was not the only institution caught in the enforcement action. National Bank of Kuwait Egypt and at least one other bank were fined smaller amounts in the same regulatory sweep, according to the report.
The Egyptian Exchange briefly suspended trading in Beltone Holding shares in connection with the affair. The CBE did not issue a statement on the matter. Beltone said it had not been contacted by the CBE, denied any wrongdoing and said all its dealings with banks in Egypt complied with CBE regulations.
FAB MISR MAINTAINS COMPLIANCE STANCE
FAB Misr responded to the fine by stating that it complies with all CBE laws and regulations and that it was unable to comment on matters relating to specific clients.