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Non - Banking Financial
Markets

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The Authority seeks to update legislations’ system, adopts effective policies and strategies to develop non-banking financial markets. FRA exerts more efforts to promote a non-banking financial system that is inclusive and conducive to the economic growth through providing financing for the economic sectors in order to achieve sustainable development. It also looks forward to enhancing financial inclusion through the economic empowerment of marginalized groups by facilitating their access to financing. Besides, FRA supports gender equality policies and empowering women and youth. FRA enhances the role of SMEs and increases their competitiveness by being open to different financing sources.

FRA’s strategy in the next period is based on becoming an effective platform for providing financing, increasing disclosure, transparency and combating corruption. Adopting a national strategy for non-banking financial sector is an essential step in building an advanced financial sector that is open to the whole world and capable to contribute effectively to sustainable development plans in order to achieve Egypt Vision 2030.

Since taking over responsibility in the second half of 2017, the Authority's senior management has prepared a comprehensive strategy to develop non-banking financial markets to be applied within 2018-2022.

FRA aims to achieve the following strategic objectives:

1. Creating a non-banking financial system that is inclusive and conducive to the economic growth.
2- Improving financial inclusion rates and contributing to sustainable development. Increasing the number of microfinance beneficiaries to reach 4 million beneficiaries compared to 2.5 million beneficiaries currently. Also, increasing the volume of microfinance granted by entities under FRA’s supervision from 11.5 billion EGP to 15 billion EGP through increasing the number of MFIs to 1,000.
3- Improving the competitiveness of the national economy and its attractiveness to foreign investments.
4- Enhancing the legislative framework of the non-banking financial sector through preparing the legislative, legal and technological infrastructure needed to introduce new financial instruments and undertaking many structural reforms that will contribute significantly to diversify the existing financial and investment instruments. Besides, improving the Egyptian economy and attracting more foreign investment.
5- Improving levels of good governance and strengthening the institutional framework of the sector.
6- Enhancing transparency and combating corruption.
7- Developing financial markets and innovating non-traditional financial solutions and services.
8- Achieving greater openness of the non-banking financial sector to the global economy.
9- Achieving better management of risks related to the safety and stability of the financial system.
10- Raising levels of awareness and financial culture.

The strategy also aims at establishing Futures Exchange in accordance with the amendments to the Capital Market Law and preparing its legislative and regulatory structure. In addition, the strategy aims at raising the contribution of the capital market to GDP to 50% by 2022 from 25% currently and increasing market capitalization of the stock market to be 3 trillion EGP compared to less than one trillion pounds currently. Moreover, FRA’s strategy seeks to raise the value of the mortgage portfolio from about 8 billion EGP now to 20 billion EGP by 2022. That is besides introducing number of mechanisms and controls to facilitate registration of collaterals. Also, the strategy creates new mechanism to allow the registration of real estate for financing purposes and increases financial leasing portfolio to 50 billion EGP by 2022 compared to 24 billion EGP currently and raising the value of factoring portfolio to be 20 billion EGP compared to 9 billion EGP currently.