HSBC Egypt Fined EGP 1.5 Billion for Cumulative Credit and Provisioning Violations
HSBC Egypt has been slapped with a record fine of EGP 1.5 billion, marking the largest penalty in the history of the Egyptian banking sector, according to informed banking sources speaking exclusively to FinTech Gate.
Sources indicated that the fine was imposed due to violations of credit granting regulations set by the Central Bank of Egypt (CBE), along with discrepancies in provisioning rules. The penalty does not relate to a single financing case, but rather cumulative breaches in the bank’s methodology for credit and provisioning management.
Earlier reports by Economy Plus confirmed that the CBE’s decision stemmed from HSBC Egypt’s non-compliance with credit and financing guidelines, including instances where loans were issued contrary to regulatory requirements.
In a statement attributed to internal sources, HSBC Egypt reaffirmed its commitment to high standards of governance and compliance, emphasizing progress in implementing corrective measures to align practices with CBE requirements.
Established in 1982 and rebranded as HSBC Bank Egypt in 2001 after the global HSBC Group increased its stake from 40% to over 90%, the bank is currently one of the largest multinational banks operating in Egypt. It offers a full range of banking and financial services through its retail and wealth management, as well as corporate and institutional banking divisions.