The Central Bank seeks to promote the effective and efficient development and functioning of the banking system. To this end, it is necessary to ensure the suitability of Banks’ significant and controlling shareholder/s.

In introducing this Regulation, the Central Bank intends to ensure that the transfer of significant shareholding is controlled in line with leading international practices.

This Regulation is issued pursuant to the powers vested in the Central Bank under the Central Bank Law (Decretal Federal Law No. (14) of 2018)¹.

Where this Regulation includes a requirement to provide information or to take certain measures, or to address certain items listed at a minimum, the Central Bank may impose requirements that are additional to the listing provided in the relevant Article.
 

¹ Article 95 of the law prohibits persons from holding controlling interests or increasing controlling interests in any licensed financial institutions unless Central Bank prior approval is obtained. Article 95 also confers powers on the Central Bank’s Board of directors to issue regulations relating to interests and instances of control.