الهيئة العامة للرقابة المالية

Dr. Islam Azzam, FRA Chairman:

• Refining responsible pricing mechanisms to match market conditions, boosting confidence and driving growth.
• Balancing financial inclusion with portfolio quality through advanced digital and assessment tools.
• Ongoing institutional dialogue is a fundamental pillar for developing the non-banking financial sector.

In line with the Financial Regulatory Authority’s (FRA) commitment to enhance MSME finance sector efficiency and sustainability, FRA Chairman Dr. Islam Azzam reaffirmed the Authority’s support for the sector’s growth and operational quality. He noted that the current phase requires a strategic balance between expanding financial access and maintaining credit portfolio integrity – a goal to be met by scaling digital solutions to drive broader financial inclusion.

By the end of 2025, MSME financing beneficiaries reached approximately 3.6 million. This milestone was highlighted during an extensive meeting between FRA Chairman and MSME finance representatives. The session reflects the Authority’s commitment to institutional dialogue, aimed at addressing market challenges and driving sector efficiency.

The meeting addressed several priority files, primarily operational and financing challenges and stakeholder proposals. Discussions covered the development of responsible pricing controls and mechanisms – aligned with current conditions – to balance business model sustainability with consumer protection, thereby bolstering sector confidence and expansion. FRA statistics reveal that total MSME financing balances reached EGP 97.4 billion by the end of February 2026, up from EGP 83.3 billion in February 2025. Additionally, discussions focused on enhancing risk management, optimizing operational models, and promoting digital transformation.

In a related context, FRA Chairman underscored human resources development as a fundamental pillar for the sector’s advancement. He called for intensified cooperation in training and capacity building, urging stakeholders to leverage the programs offered by the Financial Services Institute (FSI) – FRA’s training arm – to enhance workforce efficiency and service quality.

Dr. Islam called for a MoU between the Financial Services Institute and the Egyptian Federation for Financing Small, Medium and Micro Enterprises (MSMEF) to address the sector’s evolving training and development needs.

The meeting discussed the implementation of Basel III standards, covering compliance requirements and addressing inquiries from the attending firms. Dr. Islam emphasized the importance of a phased adoption to strengthen risk management frameworks and bolster financial stability, supported by specialized training to ensure institutional readiness.

Firms’ representatives presented several proposals for FRA review in accordance with current regulations. The Authority will undertake appropriate regulatory measures to serve the public interest, balancing sector growth with the overarching need for market stability.

In his closing remarks, Dr. Islam Azzam reaffirmed that direct engagement with market participants is a vital tool for identifying and addressing real-world operational challenges. He noted that FRA is dedicated to formulating balanced regulatory policies that drive growth without compromising financial integrity.

He underscored the Authority’s commitment to provide continuous technical and regulatory guidance through enhanced dialogue platforms and targeted training. These initiatives aim to cultivate a highly qualified workforce capable of leading sector growth and increasing its contribution to the national economy.

This meeting is part of a series of periodic dialogues conducted by FRA across the non-banking financial (NBFS) sector. It underscores the Authority’s integrated vision to bolster market efficiency, promote sustainability, and accelerate financial inclusion.