Does GRANITE have reserve requirements like banks?
GRANITE is regulated by the Financial Regulatory Authority (FRA), not the Central Bank of Egypt (CBE), so bank-specific rules like reserve requirements do not apply to us.
Those reserve requirements exist because banks take on credit risk through lending to private institutions, so they need an additional buffer to protect depositors.
In the case of GRANITE, the structure is fundamentally different.
GRANITE Money Market Fund invests primarily in Egyptian Treasury Bills, which are government-backed instruments, with a small portion held as cash to meet liquidity needs.
As a result, the risk profile is significantly lower, and the protections are built into the structure itself rather than through reserve requirements.
This is part of a broader framework where client money is separated, independently held, and governed across multiple regulated entities, not concentrated in a single balance sheet.
Those reserve requirements exist because banks take on credit risk through lending to private institutions, so they need an additional buffer to protect depositors.
In the case of GRANITE, the structure is fundamentally different.
GRANITE Money Market Fund invests primarily in Egyptian Treasury Bills, which are government-backed instruments, with a small portion held as cash to meet liquidity needs.
As a result, the risk profile is significantly lower, and the protections are built into the structure itself rather than through reserve requirements.
This is part of a broader framework where client money is separated, independently held, and governed across multiple regulated entities, not concentrated in a single balance sheet.