The Drivers of Risk Taking in the Egyptian Banking Sector

Abstract

This research aims to analyze the influence of bank size, leverage, bank ages, bank competition, and Capital Adequacy Ratio (CAR) on the level of risk-taking of the listed commercial banks in Egypt. Risk-taking is peroxided by Non-Performing Loan Ratio (NPL). To measure the risk-taking, this research uses a regression method on only the listed 14 banks in Egypt as a sample size using a panel data of 2011-2020 so that we could achieve a total of 140 number of observations. The result shows that bank age and capital adequacy ratio are the only variables that have a significant relationship with risk-taking, and the relationship is positive.