الهيئة العامة للرقابة المالية

• The two parties reviewed the first Basel III-compliant solvency standards and the structural challenges facing financing entities.
• Discussions focused on promising opportunities to enhance the business environment following the launch of FRA Regulatory Sandbox.

Financial Regulatory Authority (FRA) held a broad meeting with the World Bank representatives to review current regulatory capabilities, legislative pathways and regulatory standards for NBFIs financing MSMEs, NGOs and startups, aiming to boost the efficiency of non-banking finance.

The meeting underscores FRA’s efforts to enhance international cooperation, strengthen the regulatory framework and increase the readiness of NBFIs to meet rapid developments and production sector needs.

The meeting, which included FRA leaders, technical staff and Central Bank of Egypt (CBE) representatives, featured in-depth discussions on recent core regulatory reforms, notably: capital and solvency requirements, innovation/digital transformation and consumer protection/transparency.

The discussion covered FRA’s new requirements for minimum capital and licensing standards for Non-Banking Financial Institutions (NBFIs), especially those financing Micro, Small, and Medium Enterprises (MSMEs).

FRA officials emphasized that these requirements are crucial for raising financial solvency, strengthening institutional sustainability and balancing financing expansion with market stability and consumer protection.

The discussion also covered the structural challenges NBFIs face in meeting financing needs of these sectors, in addition to addressing existing financial inclusion gaps.

Furthermore, the meeting explored opportunities to enhance the business environment following the launch of FRA Regulatory Sandbox – a strategic platform that fosters innovation by allowing companies to test new digital solutions within a safe, balanced and risk-managed regulatory environment.

FRA officials reviewed business models adopted by licensed FinTech companies, including the use of Artificial Intelligence (AI) for risk management, improving client experience and designing innovative, project-specific financing products.

Discussions included technical aspects of FRA Board Resolution No. 137/2025 regarding the first-of-its-kind Basel III-aligned solvency standards, which aim to strengthen the financial positions of NBFIs, enhance their resilience against risks and ensure financial discipline and market stability.

The importance of the Responsible Pricing Index was also discussed, as it promotes transparency, financial disclosure, data quality and governance. The index serves as a comprehensive benchmark for financing rates across all licensed entities, empowering clients to make accurate and transparent financing decisions via FRA’s website.

This cooperation with the World Bank aligns with FRA’s vision to strengthen international partnerships, support the development of non-banking finance sector and enable its active contribution to sustainable economic growth and financial inclusion.