The Board of Directors of the Financial Regulatory Authority, headed by Dr. Islam Azzam, issued a decision to amend some of the regulations for registering, transferring and closing branches of non-banking finance companies, within the framework of efforts to develop the regulatory environment that supports the growth and governance of the sector, and to facilitate expansion procedures for companies committed to reaching various governorates and geographical areas, in order to enhance the state’s objectives for financial inclusion, while maintaining the efficiency of supervision and risk management.

Decision No. (100) of 2026, published in the “Egyptian Gazette,” amends some provisions of Decision No. (44) of 2026, which regulates the registration, transfer, modification, and closure of branches of companies operating in the field of non-banking finance activities. The decision granted companies a six-month grace period ending on August 25th to adjust their status.

Dr. Islam Azzam, Chairman of the Financial Regulatory Authority, said that this amendment comes within the framework of the Authority’s keenness to achieve a balance between supporting non-banking financial activities on the one hand and enhancing supervision and protecting the rights of customers on the other hand, which will positively reflect on the prosperity of the market and the quality of services.

The amendment requires that companies against which judicial rulings, criminal lawsuits, or administrative measures have been issued, and which wish to register branches, must have had the ruling implemented, or a settlement reached regarding those violations, or the reasons for the measures removed, and three months have passed since that.

If the reason for the measure is irremovable, a period of no less than three months and no more than three years must pass, according to what the authority deems appropriate based on the severity of the violation.

Registration of branches of non-banking finance companies is also contingent upon the company's commitment to submitting supervisory reports to the Authority and annual and periodic financial statements on time, and to fulfilling inspection and compliance observations.

On the other hand, with regard to the supervisory organizational structure of the financing branch network within companies, the new amendment allows companies to assign the risk officer and the credit officer to supervise a maximum of four regional areas, while maintaining the same supervisory and technical obligations, so that each regional area consists of five financing branches, taking into account the different concentration risks within the portfolio of one region and the acceptable level of risk for each region relative to the total size of the financing portfolio in the company.

It is worth mentioning that the Board of Directors of the Authority’s Resolution No. (44) of 2026 established an integrated regulatory framework for all types of branches of non-banking finance companies, including marketing branches whose role is limited to promoting products and collecting documents without granting financing or collecting installments, mobile branches that operate through mobile units to reach new areas, and seasonal branches associated with specific seasons or events.

The decision obliges companies to develop an integrated organizational structure for managing the branch network that takes into account the approved geographical distribution, while clearly defining the mechanisms for making credit decisions, whether through central committees at the head office, regional committees, or committees in the branches, or through the distribution of powers according to the financing segments, products, and acceptable risk levels. It also specifies the documents and procedures required for registering branches, the conditions for their acceptance, the fees for examination and study services, and the administrative measures against violators.