Financial Sector Development Policy Loan II

closed

The objective of the Second Financial Sector Development Policy Loan is to build a more competitive financial system, with sound banking and non-banking financial institutions, led by the private sector, and able in the medium-term to provide efficient financial services. This second operation will assist Egypt to strengthen the enabling environment for financial intermediation, resource mobilization and risk management, and increase private participation in the provision of financial services. Specifically, the operation will support policy reforms in the following areas: (i) reduction of state ownership in the banking system; (ii) continuing the financial and operational restructuring of state-owned commercial banks and specialized banks; (iii) strengthening the regulatory and supervisory framework for the banking sector; (iv) restructuring the state-owned insurance companies; (v) strengthening further the regulatory and supervisory framework for insurance and pensions; (vi) improving the efficiency of capital markets; and (vii) strengthening financial sector institutional infrastructure, including the credit information system, the payments system, judicial procedures, and microfinance.