الهيئة العامة للرقابة المالية

• The community dialogue extends to representatives of all non-bank financial institutions throughout the current week.

• The dialogue comes within the framework of the strategic partnership between FRA and non-bank financial institutions to enhance the developmental impact of legislations

Islam Azzam, FRA Vice Chairman:

• Strengthening capital adequacy levels is essential to achieve the Authority’s goal of maintaining financial stability.
•  A grace period will be granted to facilitate the implementation of Basel III standards

Rehab Taha, Advisor to the Chairman:

• The implementation of Basel III standards in the non-bank financial sector is consistent with international best practices and supports the Authority’s strategic objectives.

FRA convened a community dialogue with representatives of factoring and leasing companies to discuss the implementation of Basel III. This dialogue aims to enhance the developmental impact of the Authority’s regulations, supporting companies in their growth and ensuring the effective implementation of these regulations. Dr. Islam Azzam, FRA Vice Chairman attended the meeting to discuss Basel III standards and receive feedback from the companies before the implementation.

The community dialogue will continue throughout the week, extending to representatives of all non-bank financial institutions licensed by FRA. This inclusive approach allows a comprehensive exchange of ideas and suggestions on the matter.

This dialogue aims to ensure compliance with these standards across all aspects of the non-bank financial sector to ensure financial solvency and necessary technological requirements. It aligns with the Authority’s efforts to foster a more collaborative and interactive environment, promoting direct communication in line with global best practices.

Dr. Islam Azzam highlighted the significance of implementing Basel III. He emphasized that these standards align with best practices in controlling and regulating the non-bank financial system, strengthening risk management mechanisms, ensuring the soundness of financial institutions, and fostering a conducive environment for economic activities based on solid foundations.

Dr. Azzam urged companies engaged in non-bank financial activities to actively test and implement the newly announced standards. He emphasized the importance of sharing experiences and observations to facilitate a smooth transition. The standards will be applicable to all non-bank financial companies and a grace period will be provided for compliance.

Dr. Rehab Taha presented an overview of Basel III solvency standards tailored for non-banking financial companies, marking the first application in the sector. She explained that FRA has set different capital adequacy thresholds and introduced safeguards against economic fluctuations, ensuring financial stability and resilience for companies operating in this sector.

Dr. Rehab further explained that FRA made substantial amendments to the operational risk buffer, added a new market risk margin and amended provisions for doubtful debts and individual and sectoral concentration risks.

Basel III solvency standards bolster the financial soundness of companies, strengthen their financial positions and contribute to overall financial stability.

On the other hand, FRA has launched a portal to receive proposals for Basel III solvency standards for non-bank financial companies. This initiative, driven by a strategic partnership with non-bank financial institutions, aims to enhance regulatory impact and facilitate direct communication.

The proposed standards, aligned with Basel III, cover capital adequacy, leverage ratios, liquidity standards and risk management requirements. By implementing these standards, the Authority seeks to ensure the financial stability of markets and non-bank financial institutions. This, in turn, enhances the sector’s competitiveness, attracts investments and meets the needs of individuals and institutions sustainably. Ultimately, this contributes to achieving financial inclusion and protecting consumers of non-bank financial services.