CBE issues new banking regulations on companies selling consumer goods on installment payments

CBE issues directive on installment payment plans for consumer goods: The central bank has issued a new directive to banks concerning companies that sell consumer goods on installments, such as appliances and automobiles. The new regulations stipulate that all the transactions be in EGP. Banks are also required to ensure that the installments charged to customers do not exceed 35% of the customer’s total income. The companies are also required to submit to banks a detailed annual report and a quarterly report. The CBE says it stepped in to regulate the sector because there was an effective policy vacuum.