This comes after the Central Bank of Egypt issued a decision to dismiss the Chairman of the Board of Directors of the Commercial International Bank, the largest private bank in the local market, which sparked widespread controversy in economic circles.
The decision to dismiss Hisham Ezz Al-Arab from his position as Chairman of the Board of Directors of the Commercial International Bank came against the backdrop of a field inspection report.
The report said: “The existence of gross violations of the provisions of the Central Bank Law and the Banking System and the Supervisory Instructions, the decisions issued by the Central Bank and the sound banking customs and practices, in addition to the severe weakness of the supervisory procedures for granting and monitoring credit and their credibility, and the waste of all banking foundations.”
The report also stated: “The existence of severe deficiencies in the internal control environment, which resulted in huge financial losses.”
On Thursday, the Egyptian Stock Exchange suspended trading at Al-Tijaria International, in implementation of the FCA’s request, but it did not mention the reasons behind this.
It is noteworthy that Egypt won the award for Best Bank in Emerging Markets in the World for the Year from Global Finance 2020, through the Commercial International Bank (CIB).
On Friday, the Central Bank of Egypt approved the decision of the Board of Directors of the Commercial International Bank to appoint a member of the bank’s board of directors and former head of the Financial Supervision Authority, Sherif Sami, as a non-executive chairman of the bank’s board of directors.
The governor of the central bank met with the board of directors of the Commercial International Bank, who “pledged to prepare a corrective action plan to remedy the supervisory notes of the central bank, in particular with regard to internal control, credit risks and banking operations,” according to a Central Bank statement.
This comes within the framework of “the policy of the Central Bank to apply preventive and proactive measures and to ensure the implementation of the highest levels of sound banking practices,” according to the statement.