EVALUATING THE ROLE OF THE LOCAL FINANCING FOUNDATIONS IN FINANCING THE ENTERPRISES AND ITS EFFECT ON THE SUSTAINABLE DEVELOPMENT AN APPLIED STUDY ON THE EGYPTIAN BANKING SECTOR

Abstract

The study aims at clarifying and evaluating the role of local financing foundations that perform in financial enterprises. This is to achieve really economic development centered on human and what's surrounded and to achieve sustainable development targets. The concept of development is connected with the existence of local financing structure lead to the increment of the local development rate in economic, social and political fields. The finance shortage is a great problem that development countries. Local financing foundations have a fundamental role in depending on themselves in financing the development enterprises. The credit that grant from banks or banks credit are important financing resource that depend on its development enterprises because of that fundamental role in saving and grant loans. Small and medium enterprises have a essential role on development in all countries in the world and the industrial recovery has started in most of advanced countries through integrating this enterprises with heavy industries in one system . But this enterprises suffer from numerous problems in deal with the banking sector such as haven't sufficient guarantee and high rate of interest or the procedure take many time .Moreover, the credit policies in banking sector have to prefer deal with big corporations and neglect small and medium enterprises that represented essential and wide base in supporting economy . In this case, we must evaluate the role of Egyptian banking sector in financing small and medium enterprises to achieve best utilization from financing this enterprises and that will reflect on achieving the required development. The researcher depend on Deduction Methodology to deduct direct information from reviewer, researches and sciences magazines that related to this situation. researcher depend on observation and interview as a method to collect a data from the banking sector and central bank of Egypt. The researcher result to the role of banking sector is change from stage to other to achievement economic programs enhancement and finance the development so it must amendment the credit and monetary policy to can finance small and medium enterprises that have importance for national economy.