The dynamics behind private banking growth in Egypt
Date
2024-01
Authors
Journal Title
Journal ISSN
Volume Title
Type
Article
Publisher
Springer open
Series Info
Future Business Journal;(2024) 10:1
Scientific Journal Rankings
Abstract
The research investigates the determinants of private banks proftability in Egypt. The determinants are bank specifc (liquidity, capital adequacy, bank size, asset structure, credit risk, and non-performing loans), industry-specifc
(industry concentration and banking industry development), and macroeconomics (economic growth and infation).
It is an empirical study applying a quantitative method for data analysis and the type of data is secondary data. The
sample size of the research is 15 private banks on the Egyptian and the panel data for the research is 2013–2022. The
multiple linear regression analysis using the Eviews 12 application as an analytical tool by applying generalized least
squares model. The proftability of private banks, which is the dependent factor, is calculated by two measurements,
Return on Assets and Return on Equity with ten determinants of proftability as independent variables. Results indicate that capital adequacy, economic growth bank size, and infation has a positive signifcant efect on private banks
proftability in Egypt. While NPL, liquidity and credit risk have signifcant negative efect on private banks proftability
in Egypt. Based on the results recommendations are provided for bank management to maximize their proftability.
Description
Keywords
Private banks proftability, Egypt, ROA, ROE, Bank size, Credit risk, Capital adequacy, Non-performing loans, Asset structure, Banking sector development, Industry concentration, Economic growth, Infation