However, our experience with local entities such as cooperative banks, deposit taking non banking financial companies and regional rural banks highlighted the risks of poor governance, connected lending, geographic concentration leading to vulnerability to natural calamities and downturns. Small entities also tend to absorb disproportionate share of supervisory resources.
The aim of the programme is to support the Central Bank of Egypt in drafting new rules, policies and practices that will effectively create an appropriate Egyptian version of the internationally accepted banking supervision standard known as Basel II. In this process we will also take account of the most recent European experiences from the financial market turmoil.