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Population (millions) |
66.4 |
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Gross domestic savings (% of GDP) |
10.4% |
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% Population under $2/day (PPP) |
44% |
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Regulated microfinance institutions |
Some donor funded programs have worked through existing commercial banks. The Principal Bank of Development and Agricultural Credit (PBDAC) provides loans for agriculture and other rural needs. |
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Non-regulated sources of microfinance |
NGOs are registered by the Ministry of Social Affairs which may at any time inspect operations |
» More country data from the Microfinance Information Exchange Market
General Approach to Regulating
Based on the Comparative Database on Microfinance Regulation by the IRIS Center of the University of Maryland| Banks | |
| Guidelines & restrictions on financial services: |
Permitted: deposit-taking of all kind, loans, and any other "traditional" banking business Prohibited: issuing bills payable upon demand, accepting its own shares as collateral, deal in real estate, except that used for bank business. |
» Download Country Profile of Microfinance Regulation
National Bank for Development
From the paper: "The Provision of Microfinance Services by Savings Banks: Selected Experiences from Africa, Asia and Latin America", 2004, pages 49-51
By: Hugues Kamewe and Antonique Koning
National Bank for Development (NBD) has successfully introduced and managed a microcredit programme for over sixteen years. Besides microcredit services, NBD has also introduced savings schemes. Savings are compulsory because NBD would like to enhance savings awareness among its microcredit clients. The aim is to encourage its borrowers to better manage their financial resources. A precondition for loan approval is for the applicant to deposit an equivalent of 10% of the requested loan in an interest-bearing savings account with the NBD. This amount is often added to the amount loaned to the borrower. It is a symbolic act, which shows however that the borrower commits to the goals of the programme. The reward on this savings account is fixed at 8% per year and the borrower is free to retrieve his money after having paid back the loan. However, given that most clients depend on the programme for initial and continued access to finance, they often accumulate their savings. In fact, borrowers renew their loans to run their business and even apply for larger loans. The compulsory savings balance under this programme stood at US$667,000 in December 2002.
Banque de Caire
USAIDMICRO: Savings Mobilization Cases from region (4 KB, DOC)
The Banque de Caire is a state-owned commercial bank with private sector management. It is the third largest commercial bank in Egypt with 180 branches. It directly provides microfinance services as part of its vision of "emerging local corporates." Microfinance services are integrated into regular operations at the level of the branch, although the microfinance services are guided by a new Small Business Loan Division in the bank's headquarters. Branch employees responsible for these services report directly to the branch managers.
See also: Microfinance and Regulatory Environment in Egypt, 2003, El-Shami, N.