CIB», «aiBank», «Faisal Islamic» Bank are largest in capital adequacy ratio; FirstBank Ratings»

Faisal Islamic Bank of Egypt topped FirstBank list of largest in capital adequacy ratio at the end of the first half of 2022 as its CAR recorded 32.66% at the end of June 2022.

However, Commercial International Bank came in second place with a ratio of 28.8% during same period.

Capital Adequacy Ratio (CAR) is the ratio of a bank's capital in relation to its risk weighted assets and current liabilities. It is decided by central banks and bank regulators to prevent commercial banks from taking excess leverage and becoming insolvent in the process. It is also used to protect depositors and promote the stability and efficiency of financial systems around the world.

8banks in Egypt exceed the capital adequacy ratio of 20.9%

The list included 20 banks operating in the Egyptian banking sector for which financial data was made available for the analysis period; eight of the banks succeeded in achieving a capital adequacy ratio that exceeds the average prevailing in the banking sector of 20.9% by the end of June 2022, which was revealed by the Central Bank of Egypt's bulletin.

Moreover, the Arab Investment Bank ranked third with a CAR of 23.48%, followed by QNB Al Ahli Bank in the quarter with a CAR of 22.56%, and then the Housing and Development Bank came in the fifth place with CAR of 22.38% during H1 2022.

However, Bank of Alexandria, EGBANK was in sixth and seventh places with a CAR of 21.23% and 21.09% respectively during H1 2022

Furthermore, Credit Agricole Egypt ranked eighth with a CAR of 20.94%, followed by Abu Dhabi Commercial Bank Egypt in ninth place with a CAR of 19.39%, while Arab African Bank ranked was the last on the list with a CAR of 19% by the end of the first half of 2022.