Egyptian Banks Research Articles

Analyzing non-performing loan ratio in Egyptian banks: The impact of lending and environmental risks

Analyzing non-performing loan ratio in Egyptian banks: The impact of lending and environmental risks

Evaluating Board Characteristics’ Influence on the Readability of Annual Reports: Insights from the Egyptian Banking Sector

This study aims to examine the impact of board characteristics (BCs) on banks’ annual reports readability (BARR). Further, it examines whether bank size (BS) moderates the association between BC and BARR. The study employs a sample of 208 bank-year observations from both listed and non-listed banks in the Egyptian stock exchange (EGX), utilizing data spanning from 2016 to 2023. The study employs a random-effect regression model to test the hypotheses and discuss the results. The results suggest that BARR has a significant association with board meetings, gender and cultural diversity. Furthermore, BS played a moderating role in determining the association between BCs and BARR, supporting the second hypothesis. The findings show that the BCs and disclosure quality differ for banks of varying sizes. The findings have practical implications for the Egyptian banking sector, highlighting that board structure is critical to transparency and maintaining public trust. Additionally, the results focus policymakers’ attention on standardizing the contents and structure of banks’ annual reports, with the aim of reducing managers’ manipulation of disclosures and reducing the level of information asymmetry between stockholders, as suggested by the agency theory.

The Impact of Exchange Rate Volatility on Bank Profitability: An Empirical Analysis of the Egyptian Banking Sector Before and After the Egyptian Currency Devaluation

The Impact of Exchange Rate Volatility on Bank Profitability: An Empirical Analysis of the Egyptian Banking Sector Before and After the Egyptian Currency Devaluation

The Impact of COVID-19 Spread on the Egyptian Banks’ Soundness

The Impact of COVID-19 Spread on the Egyptian Banks’ Soundness

The Impact of COVID19 Spread on the Listed Egyptian Banks Stock Market Returns

The Impact of COVID19 Spread on the Listed Egyptian Banks Stock Market Returns

Determinants of Egyptian Banks Performance (Profitability & Loan Portfolio Quality) under Political Instability: Forward-Looking Analysis of Israel-Gaza War Implications

Determinants of Egyptian Banks Performance (Profitability & Loan Portfolio Quality) under Political Instability: Forward-Looking Analysis of Israel-Gaza War Implications

Liquidity Risk Management and Profitability in Egyptian Banking: A Comparative Study of Public and Private Banks

Liquidity Risk Management and Profitability in Egyptian Banking: A Comparative Study of Public and Private Banks

The Impact of Fintech on Credit Risk Management: An Applied Study on the Egyptian Banking Sector

The Impact of Fintech on Credit Risk Management: An Applied Study on the Egyptian Banking Sector

The Key Constituents of the Planned Change—Corporate Diversity Strategy and its Influence on Financial Performance of the Egyptian Banks Listed in EGX 2023: The Mediation Effect of Customer-Based Reputation

The Key Constituents of the Planned Change—Corporate Diversity Strategy and its Influence on Financial Performance of the Egyptian Banks Listed in EGX 2023: The Mediation Effect of Customer-Based Reputation

Bank intermediation efficiency and liquidity risk in Egypt: a two-stage non-parametric analyses

This is a pioneering study that undertakes a comparative analysis assessing the annual intermediation efficiency of public versus private banks in Egypt. Moreover, liquidity risk is a major threat facing banks in their efforts to sustain financial stability. Thus, this study is the first to model the determinants of liquidity risk in public and private banks in Egypt while examining the impact of banks’ intermediation efficiencies on their liquidity risk levels. The study employs advanced nonparametric econometric approaches on a sample of Egyptian public and private banks from 2014 to 2022. The data envelopment analysis is used in estimating banks’ intermediation efficiency scores, while the quantile regression analysis is applied to examine the impact of bank intermediation efficiency on liquidity risk under different liquidity risk quantiles. The findings indicate that public banks show consistent superiority in terms of their financial intermediation efficiency levels compared to private banks. Moreover, the paper findings demonstrate the negative significant relationship between bank intermediation efficiency and liquidity risk while highlighting the higher significant positive impact of intermediation efficiency on reducing the liquidity risk of banks that are characterized by undertaking high liquidity risk levels. Furthermore, contrary to general assumptions, this study’s findings demonstrate that the significance of micro- and macro-level determinants of a bank’s liquidity risk is dependent on its prevailing liquidity risk level. Hence, the positive impact of equity capital, asset concentration, size, and growth in gross domestic product and the negative effect of asset quality on bank liquidity risk vary under banks’ different liquidity risk quantiles.

Financial inclusion and Financial Performance: The interplay role of capital adequacy requirements in Egyptian Banks

PurposeFinancial inclusion aims to provide affordable financial services, including banking, loans, equity, and insurance products, to underserved populations. This study aims to examine the moderating effect of a bank’s capital adequacy ratio (CAR) on the nexus between financial inclusion (FI) and a bank’s financial performance (FP) in the Egyptian setting.Design/methodology/approachThe study uses two empirical linear mixed models (LMM) to test the moderation effect of a bank’s CAR on the association between FI and FP. The study sample comprises 360 bank quarter-observations of 10 listed banks in the Egyptian Stock Exchange (EGX) from 2013 to 2021.FindingsThe findings show that the bank’s CAR strengthens the association between FI dimensions, namely, deposit growth, loan growth, and the number of employees, and the bank’s FP with contradicted directions.Research limitations/implicationsThis study provides policymakers insights into the crucial role of complying with banking regulation, namely, the capital adequacy ratio (CAR) and expanding financial inclusion practices to enhance and improve the bank’s FP. Thus, encouraging more strategies and facilities toward financial inclusion.Originality/valueDue to the scarcity of financial inclusion literature in emerging economies, this paper extends FI literature by highlighting the moderation impact of a bank’s CAR on the relationship between FI dimensions and FP in the Egyptian banking sector. Consequently, this study clarifies this beneficial relationship, which may have significant implications for restoring the challenges faced by the Egyptian economy following the critical events it went through, which, in turn, impacted the country’s poor and vulnerable.

Citizenship pressure effect on turnover intention in the Egyptian Banking Sector

Citizenship pressure effect on turnover intention in the Egyptian Banking Sector

The impact of electronic banking on net interest margin in Egypt-An Empirical Evidence from The Egyptian Banking Sector During Covid-19

The impact of electronic banking on net interest margin in Egypt-An Empirical Evidence from The Egyptian Banking Sector During Covid-19

Challenges of the Financing Role of the Egyptian Banking Sector and the Required Mechanisms

Challenges of the Financing Role of the Egyptian Banking Sector and the Required Mechanisms

Profitability Determinants in Public & Private Commercial Banks: Evidence from the Egyptian Banking Sector

Profitability Determinants in Public & Private Commercial Banks: Evidence from the Egyptian Banking Sector

Multinational banking in Egypt: A case-study of the Ionian Bank, 1907–1939

Using records left by the Ionian Bank and other British multinational banks, as well as building on the extensive insights provided by leading business historians, the article contributes to the debate about how historical analysis can illuminate the study of international business. We shall achieve this by firstly evaluating the reasons why Ionian moved to Egypt, applying Dunning’s ‘eclectic paradigm’ to the analysis of a highly complex economic and political environment. We shall then address the organisational challenges of managing a geographically dispersed operation, highlighting the principal-agent issues associated with geographically dispersed businesses. This will be followed by an analysis of Ionian’s performance, explaining how the changing environment affected management’s ability to generate a consistent level of profitability.

Banking with purpose: the impact of CSR-S on customer behavior during the COVID-19

PurposeThis article examines the impact of banks’ corporate social responsibility communication through social media (CSR-S), electronic word of mouth (eWOM), and brand reputation on consumer behavior during the COVID-19 crisis, with a focus on purchase intention.Design/methodology/approachThe study employed a quantitative approach to analyze data from a survey of 621 Egyptian bank customers who followed the banks’ social media pages and interacted with CSR-S initiatives. A genetic algorithm selected the most relevant variables affecting purchase intention. A Bayesian regression model was used to analyze the impact of CSR-S communication, eWOM, and brand reputation on purchase intention.FindingsCSR-S initiatives, eWOM, and brand reputation were found to influence customer purchase intention. CSR-S initiatives can boost purchase intention by encouraging brand reputation and initiative sharing with friends and other customers. However, CSR-S negatively moderates the positive impact of eWOM and brand reputation on the predisposition to contract products and services with the bank.Originality/valueThis study addresses critical research gaps in CSR literature. Firstly, it examines the impact of CSR-S actions on customer behavior, a perspective less explored in previous research. Secondly, it investigates the intricate relationships between CSR-S, eWOM, brand reputation, and purchase intention, shedding light on their interplay, particularly during the COVID-19 pandemic. Additionally, this research extends CSR-S investigations to the competitive banking industry and focuses on a developing country context, enhancing the applicability of findings for Egyptian banks. Lastly, the study employs advanced methodologies to improve the accuracy of results.

The moderating role of board gender diversity on the relationship between audit committee characteristics and financial performance: evidence from Egypt

Purpose The purpose of this paper is to investigate whether audit committee characteristics, in particular audit committee size, audit committee activity and audit committee gender diversity, are associated with financial performance in Egyptian banks. The second purpose of this paper is to explore the moderating role of board gender diversity on the relationship between audit committee characteristics and financial performance. Design/methodology/approach A multiple regression analysis is used to estimate the moderating role of board gender diversity on the relationship between audit committee characteristics and financial performance of a sample of Egyptian banks during the period between 2018 and 2022. Findings The results indicate that audit committee size has a negative and insignificant effect impact on return on assets (ROA) and return on equity (ROE), respectively. The results also indicate that the audit committee gender diversity has a significant positive impact on ROA and ROE, respectively. Regarding audit committee activity, the number of board meetings has a negative and insignificant effect on ROA and ROE, respectively. Regarding gender diversity as a moderating variable, in general there is a positive effect of gender diversity on the relationship between audit committee characteristics and financial performance. Research limitations/implications The study was limited to 20 banks in one country, but it sets the tone for future empirical research on this subject matter. The study also relied on one moderating variable, which is board gender diversity. This study provides an avenue for future research in the area of corporate governance and financial performance in other emerging countries, especially other African countries. Practical implications This study provides useful insights for managers and policymakers to better understand which audit committee characteristics can best encourage a company to improve financial performance. Furthermore, regulators should ensure that banks strictly adhere to corporate governance principles to build a strong banking industry capable of achieving economic development. Social implications Banks will benefit equally from valuable qualities across demographic groupings in society by having females on the audit committee and appropriate audit committee meetings. Additionally, if audit committee members are correctly selected, banks with more females in audit committee and suitable audit committee meetings can successfully contribute to strengthening financial performance and social welfare of diverse segments of society. A culture of good banking governance must emerge to improve bank financial stability and, as a result, greater stability and economic growth. Originality/value To the best of the authors’ knowledge, the study is, perhaps, the first to examine the moderating role of board gender diversity on the relationship between audit committee characteristics and financial performance in Egyptian banks. This study adds to the literature by investigating such an issue in a developing economy that operates in a different context than those in developed countries.

Unleashing potential: Islamic leadership’s influence on employee performance via Islamic organizational values, organizational culture and work motivation

Purpose In the present era, the achievement of employee Islamic performance has become a significant challenge for organizations. The purpose of the study is to examine the effect of Islamic leadership on employee Islamic performance directly and indirectly by bridging the connections between employees’ Islamic organizational values, Islamic organizational culture, and Islamic work motivation among the employees of Egyptian banks. Design/methodology/approach The authors used quantitative methods in this study and based its findings on the data received from 312 respondents in response to a questionnaire. Findings By using SmartPLS 4, this study’s findings demonstrate that Islamic leadership has a positive and significant effect on Islamic organizational values, culture, employee Islamic performance and work motivation. While Islamic organizational values and Islamic organizational culture do not significantly impact employee Islamic performance, Islamic work motivation is a significant predictor of employee Islamic performance. On the one hand, Islamic organizational values and Islamic organizational culture do not mediate the relationship between Islamic leadership and employee Islamic performance. On the other hand, Islamic work motivation is a mediating variable that significantly develops the relationship between Islamic leadership and employee Islamic performance. Practical implications The study’s findings support policymakers and human resource management practitioners to develop plans and strategies which enhance the Islamic performance of organizations’ employees. In addition, this study’s findings provide insights for researchers and academicians in developing Islamic leadership within their organizations so that they operate by Islamic values and codes. Originality/value Finally, by offering an integrated model of Islamic leadership, Islamic organizational values, Islamic organizational culture and employee Islamic performance, this study’s findings fill the gaps in the context of bank employees in a developing country, namely, Egypt.

The Impact of UTAUT, trust perspective and bank's reputation on actual use of mobile banking with mediating role of behavioral intention: An empirical study on commercial banks in Egypt.

This research investigates the impact of UTAUT theory, trust perspective and bank's reputation on actual usage of mobile banking mediated by behavioral intention in banking industry in Egypt. The objectives of this research are: Identify the factors driving customers to adopt mobile banking among commercial banks in Egypt; evaluate the role of bank's reputation in enhancing customers' to adopt mobile banking; assess role of cultural dimensions as moderators in enhancing consumers to adopt mobile banking in Egypt ; to develop conceptual framework that explain factors affecting consumers' behavioral intention toward mobile banking and eventually its actual usage using structural equation modeling. The research uses a quantitative approach; an administrated questionnaire is used to gather the required data to test the developed hypotheses, analyzing the data through structural equation model (SEM) using AMOS software version 25. Results of this study show: there is a significant direct effect between UTAUT theory, trust attribute, bank's reputation and actual usage of mobile banking; there is a significant direct effect between UTAUT theory, trust attribute, bank's reputation and behavioral intention toward adopting mobile banking; there is a significant direct effect between behavioral intention toward adopting mobile banking and actual usage of mobile banking. Finally, the study found that Hofestede's cultural dimensions moderates the relationship between behavioral intention and actual usage of mobile banking.