A step closer to launching Egypt’s first digital bank: Banque Misr’s Misr Digital Innovation (MDI) has received preliminary approval from the Central Bank of Egypt to launch the country’s first digital bank, MDI said in a statement (pdf) on Thursday. The new bank will be called Onebank, MDI announced.

What’s next: MDI plans to get Onebank off the ground in 4Q 2024 after finalizing the second phase of due diligence and acquiring the operating license.

Remember: MDI applied for a digital banking license in August, becoming the first local company to do so. The CBE updated regulations to the Banking Act governing digital bank licensing the month prior to MDI announcing its intention.

Basata to follow suit? Fintech platform Basata Financial Holding is also looking into setting up a digital bank, the company’s chairman Aladdin Saba told Al Borsa. The company is reportedly in the process of studying the requirements of acquiring a digital bank license.

More companies in line to establish digital banks? Local firms Ostoul Securities Brokerage, OPay, and PaySky have also announced their plans to apply for a digital banking license.

CBE ISSUES NEW OWNERSHIP REGULATIONS-

The CBE issued new ownership rules for banks: Buyers who are going to acquire more than a 10% stake in a bank — or a stake that would otherwise grant the buyer voting rights — will have to file a request to the CBE at least 60 days ahead of finalizing the agreement, according to a circular (pdf) issued on the CBE’s website.

The submission must include a solvency report of the applicant, future management plans for the bank and the policies they target, and a list of the shares they own in other companies, the statement read. Additionally, the acquisition must be completed within six months of receiving the CBE’s approval.

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