Learn about the formation of the Monetary Policy Committee in accordance with the Central Bank Law

The Central Bank and Banking System Law aims to raise the level of performance of the banking system, modernize and develop it, and support its competitive capabilities, in a way that qualifies it for global competition, and enhance the governance and independence of the central bank to ensure the activation of its role and the achievement of its goals.

According to Law No. 88 of 2003, the Monetary Policy Committee is formed under the chairmanship of the governor, the membership of the two deputy governors, and three non-executive members of the Board of Directors chosen by the Board of Directors. The Board of Directors may include in its formation a member with expertise in economic, banking, or financial matters who is not a member. The Board of Directors, and the committee concludes by studying the reports and proposals submitted by the monetary policy and markets sectors of the Central Bank.

The law entrusted the committee with making the necessary decisions regarding monetary policy and its tools, especially setting the central bank’s basic interest rates without being bound by the limits and provisions stipulated in any other law.

The law includes mechanisms for the Central Bank’s cooperation with foreign counterparts with the aim of cooperation, exchanging information, and coordinating supervisory procedures. The articles dealt with the conditions and procedures for licensing banks, foreign bank branches, and representative offices, where the minimum capital for banks was increased to five billion pounds and foreign bank branches to one hundred and fifty million US dollars. In order to ensure the soundness of the financial position of banks and encourage the creation of strong banking entities that contribute to the economic development process in the country, and the establishment of a new fund called the Fund for Financing Procedures for Resolving Troubled Banks.