Abdel Latif said the FRA's recent decisions are not isolated
actions, but a cohesive set of measures sending clear messages to sector
participants. He emphasized that continued operation in the market depends not
on the size of the business, but on an entity’s ability to comply with
regulations and manage financing risks through effective, disciplined, and
transparent risk management.
He stressed that these decisions are not targeted at a
single sector but convey a broad message to the entire non-banking financial
system.
Abdel Latif added that the FRA’s actions create
opportunities for all companies, offering a genuine chance for internal
restructuring and for leveraging the space left by exiting players.
He warned, however, that benefiting from this opportunity
requires careful planning and a deep understanding of the compliance-risk
balance. Any uncalculated expansion could turn into a burden rather than an
advantage.
He noted that regulating the market and reclassifying
entities is a natural step in the sector’s maturation. Companies aiming to
continue operating and competing must establish strong governance systems,
review their distribution channels, and tighten credit granting controls.
Abdel Latif concluded that microfinance institutions
eligible to continue in the market are those that respect governance and risk
management principles. These principles are not merely regulatory requirements,
but tools to safeguard operations, build trust, and ensure sustainability and
quality.
Recently, the FRA approved the cancellation of the
microfinance license for the Assiut Businessmen Association, along with other
companies, including Thiqah Microfinance, Easy Credit, and the Egyptian
Microfinance Company "Makasib."
Total financing for micro, small, and medium enterprises
(MSMEs) rose to EGP 24.79 billion in the second quarter of 2025, up from EGP
20.02 billion in the same period of 2024, according to the FRA.
Microfinance accounted for the largest share, reaching EGP
20.3 billion, compared to EGP 18.1 billion in Q2 2024. The number of
beneficiaries of microfinance activities reached 779,000 during the second
quarter of 2025.