Executives from Islamic banks operating in the market met over the last few weeks with the central bank committee drafting the new Banking Act to discuss their input on the bill, sources close to the matter tell Al Borsa. The group proposed an additional six articles to the law that mean to regulate Islamic banking in the country, that cover establishment of an Islamic banking authority in the CBE, the introduction of sukuk, mudarabah, and other sharia-compliant financing tools and options to the industry, as well as the relationship between Islamic financing institutions operating in the market. The CBE had said in September that the amended draft for the act would be ready in a month, after the committee filters through notes and suggestions from the Federation of Egyptian Banks, which had objected to a number of proposed amendments, including those on setting term limits for bank managing directors and suggesting that banks kick in 5% of their bottom lines annually for an industry development fund.

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