FRA conducts stress test of non-banking financial sector over COVID-19 crisis

CAIRO - 21 May 2020: Chairman of the Financial Regulatory Authority (FRA) Mohamed Omran said that the team managing the impact of coronavirus pandemic on the non-banking financial services urged the companies affiliated to the authority to put plans to continue their business under the coronavirus crisis.

In a statement on Thursday, Omran said that the team conducted for the first time in Egypt "stress testing" to determine the ability of the non-banking financial sector to bear the financial impact resulting from the coronavirus (COVID-19) on economy.

The stress test is an analysis or simulation designed to determine the ability of a given financial instrument or financial institution to deal with an economic crisis.

This analysis aims at knowing the risks facing the non-banking financial markets because of the spread of COVID 19, Omran said.