• Dr. Omran: The comprehensive strategy for non-banking financial services aims at enhancing the competitiveness of the Egyptian economy
Dr. Mohammed Omran- FRA’s Chairman announced that the first year (2018-2019) of the schedule set for implementing the comprehensive strategy of non-banking financial activities has entered into force. He added that among the strategy’s priorities is raising capital and issuance rates , providing tools for financing national projects and infrastructure projects , improving Egypt’s ranking in the Doing Business Report and the International Competitiveness Report and motivating companies to sustainability and participation in international environmental and community initiatives.
Dr. Omran emphasized that the economic situation of the Egyptian society necessitates the need to develop non-traditional and innovative solutions that provide new and updated tools which suit various financing needs to support growth and increase investments and employment.
FRA’s Chairman said that the non-banking financial services sector is ready to contribute to this, as this sector has enormous potential to improve savings rates and channel them to different categories and sectors that are unable to access financing in its traditional form.
Dr. Omran explained that the Authority has been keen to formulate the main strategic objective of the non-banking financial services sector, namely, setting a non-banking financial sector that stimulates sustainable growth, supports financial inclusion and contributes effectively to sustainable development plans Egypt 2030. He noted that this plan could be achieved through strengthening the financial capabilities of the Egyptian economy and providing various innovated financing tools that will mobilize more savings and direct them towards promising investments opportunities. In addition, new financial tools shall be introduced to attract domestic and foreign investment and meet financing needs of both the government and the public and private sectors. Hereinafter, FRA’s strategy in ten main goals:
– Creating a non-banking financial system that is inclusive and conducive to the economic growth.
– Improving financial inclusion and contributing to sustainable development.
– Improving the competitiveness of the national economy and enhancing its attractiveness to foreign investments.
– Strengthening the legislative framework of the non-banking financial sector.
– Improving governance standards and strengthening the institutional framework of the sector.
– Improving transparency and combating corruption.
– Developing financial markets and innovating non-traditional financial solutions and services.
– Achieving greater openness of the non-banking financial sector to the global economy.
– Better management of risks related to the safety and stability of the financial system.
– Raising levels of awareness and financial culture.
FRA’s Chairman added that with the entry into force of the schedule set for the comprehensive strategy of non-banking financial activities in its first year (2018-2019), FRA considered the importance of community participation in the details of its strategy. Also, it defined issues that have been entirely reviewed and issues that FRA starts to study and is about to be activated, and others that have not been studied or activated , that is through announcing the schedule set for implementing stages of the strategy until 2022 in what is known as radar or Strategy Watch.
It is worth mentioning that the World Bank has emphasized that the growth and development of the non-banking financial sector – together with the banking sector – helps to protect the economy from financial crises or to achieve rapid recovery from those crises. In contrast, the inefficiency of the non-banking financial sector and weak legislation systems will exacerbate the financial crisis.