In short: On 22 April 2026 the Central Bank of Egypt told banks that finance margin purchases of securities to set Board-approved limits, cap securities outside the EGX 100 index at 10% of each client’s portfolio, and revalue daily. The rules apply from that date; existing portfolios have six months, to about 22 October 2026.
Key facts
| Authority | Central Bank of Egypt (CBE): decision of its Board of Directors on 21 April 2026; circular signed by Mr. Tarek ElKholy, Deputy Governor |
|---|---|
| Instrument | CBE circular to the Chairman of the Board of each bank on rules for financing margin purchases of securities (Arabic original) |
| Issue date | 22 April 2026, listed on the CBE circulars page under Credit Granting |
| Effective date | 22 April 2026, “from its date” (item 8); existing portfolios have six months, to about 22 October 2026 (our arithmetic) |
| Applies to | Banks that finance margin purchases of securities |
| Status | In force. The latest entry in the CBE circulars listing is dated 12 October 2026, and no later circular on margin financing appears there |
| Official source | https://www.cbe.org.eg/-/media/project/cbe/listing/circulars/2026/april/circular-dated-22-april-2026-regarding-margin-trading-regulations.pdf |
| Last verified | 17 October 2026, against the CBE website (circular PDF, circulars page, Law No. 194 of 2020) |
Why did the CBE issue it, and who must act?
The circular states its own purpose. The CBE acts “to preserve the stability and soundness of the banking sector”, in light of “current developments”, and “to establish an effective supervisory framework” that limits the risks of financing margin purchases (English quotations here are Neurasix’s reading of the Arabic). The Board decided on 21 April 2026; the circular followed the next day.
Our reading: a margin loan is secured on securities that reprice daily, so the rules centre on concentration limits, daily pricing and a defined sale trigger.
It is addressed to the Chairman of the Board of each bank, so the work sits with banks that lend against securities. Clients feel it through the limits their bank sets. Item 9 reaffirms the CBE instructions of 20 June 2001: facilities to securities trading companies only bridge the short interval between executing trades and settling them with clients.
Which law sits behind the circular?
The Central Bank and Banking Sector Law was promulgated as Law No. 194 of 2020 by the President of the Arab Republic of Egypt, Abdel Fattah El-Sisi, after the House of Representatives approved it, and published in the Official Gazette on 15 September 2020. Article 5 of the promulgating law has the CBE Board issue the decisions that implement it. The articles below are our reading of how the circular fits the law.
- Law No. 194 of 2020Parliament-approved; Gazette of 15 September 2020
- CBE Board decisionSession of 21 April 2026
- Circular to banks22 April 2026, nine items
- Each bank’s policyBoard-approved; existing portfolios by about 22 October 2026
| Article | What the law provides |
|---|---|
| 6 and 7(d) | The CBE aims at the “soundness of the monetary and banking system” and issues supervisory regulations and instructions for licensed entities |
| 84(b), (d) | The Board sets supervisory rules for banks and may impose specific standards on any bank, including maximum concentration limits and maximum lending ratios against collateral |
| 99 | Each bank’s board sets its credit rules and the system that monitors their use |
| 111 | The CBE runs a credit registry, and banks must supply the data |
What does the circular add to that framework?
| Topic | General framework (our reading) | Circular, from 22 April 2026 |
|---|---|---|
| Limits | Each bank sets credit rules under Article 99 | Board-approved margin policy with four limits, including the 10% cap (items 1 and 1-1 to 1-4) |
| Control | Risk systems of each bank (Article 83(b)) | Automated systems, with daily revaluation (item 2) |
| Scope | Set bank by bank | Egyptian pounds only; securities held at the same bank; the bank’s own shares excluded (items 3 to 5) |
| Reporting | Credit registry under Article 111 | Declaration to the CBE Credit Registration System and the credit information companies (item 7) |
What exactly must the policy contain?
Total pool
A maximum amount allocated to margin financing.
Per client
A maximum for one client and its related parties, taken from that allocated amount.
Per security, sector and EGX 100
A maximum for each security and sector within a client’s portfolio, set by the bank’s risk appetite, and no more than 10% of the portfolio in securities outside EGX 100.
Breach procedure
When clients must cut exposure by paying down or adding collateral, how long they have, and when the bank sells securities and liquidates collateral.
value outside EGX 100 ÷ total client portfolio ≤ 10%
Illustration, not from the circular: on EGP 2,000,000 of portfolio, up to EGP 200,000 may sit outside EGX 100.
Beyond the four limits, no client may be financed to buy shares of a company where the client is a major shareholder or board member (item 6). The policy must also follow the FRA decisions on margin purchases (item 1).
From when, and how long is left?
On our count about five days remain to bring existing margin portfolios inside the limits above.
What should banks do?
Our suggestions, not requirements:
- Test every margin client at today’s prices against the 10% cap, the related-party limit and the item 6 exclusion.
- Check that the Board-approved policy carries all four limits as numbers, with the notice period and the sale trigger.
- Keep evidence that daily revaluation runs and flags breaches automatically.
- Confirm custody at the lending bank (item 3) and the credit registry declaration for each facility (item 7).
Points to watch: the FRA decisions that item 1 tells banks to follow, and the measurement of the 10% between revaluations, to be fixed in each bank’s own policy. Banks may wish to discuss with their CBE supervisors the treatment of any position above a limit once the window closes.
Frequently asked questions
Did the CBE or the FRA issue the margin trading rules?
The CBE issued this circular, after a decision of its Board on 21 April 2026. It tells banks to follow the decisions of the Financial Regulatory Authority (FRA), the capital-market regulator, whose Executive Chairman sits on the CBE Board.
How does the 10% limit work?
Item 1-3 caps securities traded outside the EGX 100 index at 10% of each client’s total portfolio. Banks also set their own maximum for each security and sector, based on the risk level they accept.
Can a bank finance margin purchases in foreign currency?
No. Item 4 requires the financing to be in Egyptian pounds and limits dealing to securities issued in Egyptian pounds. Item 3 adds that the securities must be held at the lending bank itself.
When must existing margin portfolios comply?
The instructions apply from 22 April 2026 (item 8). Banks have six months from that date to reconcile existing portfolios, which on our count is about 22 October 2026.
Sources (official, verified 17 October 2026)
- CBE, Circulars page (entry dated 22 April 2026) https://www.cbe.org.eg/en/laws-regulations/regulations/circulars
- CBE circular dated 22 April 2026 on margin trading regulations (PDF, Arabic) https://www.cbe.org.eg/-/media/project/cbe/listing/circulars/2026/april/circular-dated-22-april-2026-regarding-margin-trading-regulations.pdf
- Law No. 194 of 2020 (Official Gazette, 15 September 2020; PDF, Arabic) https://www.cbe.org.eg/-/media/project/cbe/page-content/other-links/cbe-law-no,-d-,-194-of-2020.pdf
- CBE, Banking Laws page https://www.cbe.org.eg/en/laws-regulations/laws/banking-laws
- CBE, Board of Directors composition https://www.cbe.org.eg/en/about-cbe/board-of-directors/board-of-directors-composition
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