The objections to his new directive limiting the tenure of bank CEO's to nine years have prompted Central Bank of Egypt (CBE) governor Tarek Amer to ask for a meeting with them. It would be the first meeting since Amer assumed office in November 2015.
According to The Daily News Egypt, Amer intends to dialogue not just with Egypt's banking CEO's but their deputies and other senior executives as well. The last time the governor met with the captains of the financial industry a few months ago, they welcomed him while saying goodbye to his predecessor, Hashim Ramez.
Majority of these bank executives that will meet Amer on Sunday are now looking at a maximum of nine years serving in their respective banks. The nine years can be measured cumulatively or consecutively. This new cap on the amount of time that bank leaders can lead their organizations is presumably the major point of discussion in the meeting.
Reuters elaborated that Amer was motivated by a desire to revitalize the ailing Egyptian economy by opening the way for "new blood" who will bring innovation and modernization into the banking sector. Some of his more radical strategies removing a celing on dollar deposits, making the exchange rate fluid, and pouring more millions of dollars to stabilize the national reserves.
The nine-year limit will inevitably lead to the resignation of many top banking CEO's, prompting critics to accuse Amer of overreaching his bounds by stepping into the affairs of the private sector. One financial official who declined to be named said that the directive will have "dire consequences."
Mail and Guardian Africa forecasted that 20 percent of the 40 banks in Egypt will see a major changing of the guards over the next year. It listed down the institutions that will be affected: Commercial International Bank Egypt, Qatar National Bank, Arab African International, National Bank of Kuwait, Societe Arabe Internationale de Banque, Misr Iran Development, Faisal Islamic and Al Baraka.
Turnover will not be rapid, however, as each step in the resignation-and-succession phase that will happen in the banks will have to be discussed with their respective board of directors.
