Dr. Mohammed Omran- FRA’s Chairman announced the launch of the National Strategy for non-banking financial activities (2018-2022) which aims at carrying out structural and legislative reforms to non-banking financial services sector in order to enhance the ability of poor groups to improve aspects of life, grant greater role for entrepreneurs and increase participation of SMEs in the economic growth.
FRA’s Chairman told the participants in the community dialogue – at the Ministry of Investment and International Cooperation- that the strategy seeks to change the concept of the non-banking financial sector to a sector that focuses on sustainable development and social justice, a sector that includes all entities and supports the most small and medium enterprises in order to be the main catalyst for production and operation.
Also, he asserted that the coordination of efforts between different regulatory bodies, both in the banking and non-banking sectors, has a role to play in ensuring the effectiveness of integration, whether by ascertaining the absence of conflicting policies between the two sectors or to work together to maximize the economic returns of the financial services sector.
He pointed out that the National Strategy for non-banking financial services aims at building an integrated financial system at the local level and achieving integration with all parties involved in the financial system, especially the banking sector so that the stability of the financial system will be achieved, thus enhancing the ability of non-banking financial institutions to be an important partner in serving the national economy.
FRA’s Chairman stated that contemporary economies focus on the so-called knowledge and innovation economy where economic activities depend on innovation, technology and human minds with good education. He added that it does not depend on the development of a financial sector that provides modern and innovative financial services but also on stimulating all productive economic sectors and supporting the transition to an economy that is based on knowledge and investment promotion.
In addition, FRA’s Chairman noted that the prepared strategy aims at placing Egypt among the top 40 countries in the field of innovation and within the top 20 countries in the rate of improving gender equality in employment, increasing the competitiveness of the Egyptian economy internationally, achieving an average economic growth rate of 7% and increasing the contribution of non-banking financial services to GDP to 70%