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Liquidity in Egyptian banks is too high: senior official

Number of Egyptians dealing with the banking sector is less than the required rates, due to the absence or lack of banking culture.

The Egyptian banking system is able to fund all major projects launched by the government during the last period, reports Al Arabiya, citing a senior official.

Mr. Mohamed Ahmed Kafafi, CEO of the Egyptian Credit Bureau S.A.E. company, expects that, as soon as the government announces the launching of new projects, banks will intervene to finance these projects, especially since the liquidity rates at banks are very high.

He explains that banks’ financial solvency is very good and capital adequacy ratios are higher than the specified normal rates.

Kafafi points out that the number of Egyptians dealing with the banking sector is less than the required rates, due to the absence or lack of banking culture.

He denied the existence of obstacles in credit facility operations for projects with feasibility studies that confirm their profitability and economic feasibility.

The Egyptian official attributes the continuation growth rates achieved by Egyptian banks and the size of good work in the past period to the general system and controls supervised by the Central Bank of Egypt, despite conditions that were experienced by the country.

These general systems and controls assisted the banks in overcoming the crisis and supporting the Egyptian economy during the difficult period that followed the January 2011 revolution.