Banks to run background checks on businesses under new working capital financing regulations

REGULATION WATCH- CBE issues new lending regs to banks: The Central Bank of Egypt (CBE) on Tuesday issued new regulations (pdf) that will require banks to dig into the ownership and creditworthiness of suppliers that companies are borrowing to repay. Under the new rules, banks will need to obtain a full list of a borrower’s suppliers and run KYC, including obtaining copies’ of the supplier’s commercial registration document, before authorizing a loan. The CBE has allowed a three-month grace period during which banks can existing clients through the process. For new clients, banks must immediately begin complying with the rules.