Egyptian Banks Research Articles

How workplace fun is experienced in the banking sector? A qualitative study

PurposeThis paper aims to investigate how workplace fun is experienced in two public Egyptian banks by addressing the employees working there.Design/methodology/approachTo investigate workplace fun in the selected banks, the author employed virtual ethnographic field research by spending two weeks (virtually and full-time) inside each of the two selected public banks. Besides this virtual ethnographic experience, the author employed semi-structured interviews and focus groups with the bank employees. Moreover, the author digitally examined documents such as posters, cartoons, brochures and a WhatsApp group. A total of 188 respondents were contacted and involved in eight semi-structured interviews and 36 focus groups. All interviews and focus groups were conducted in Arabic, the mother tongue of all respondents. The author subsequently used thematic analysis to determine the main ideas in the transcripts.FindingsThe findings confirmed that workplace fun has not been carefully understood, developed and sustained in the selected public Egyptian banks. To the best of the author's knowledge, this study is the first of its kind in the context of a developing nation to focus on workplace fun, and subsequently, it is the first to address the banking sector in one of the leading developing nations in Africa and the Middle-East. Furthermore, based on the analysis of the focus groups and interviews the author created a model of four obstacles: work environment realities, managerial practices, bank-related behaviour and meaning-related obstacles. Managing those four obstacles secures a relevant foundation on which banks can develop and maintain a systematic implementation of workplace fun and humour.Originality/valueThis paper contributes by filling a gap in HR management, in which empirical studies on workplace fun have been limited so far.

دور التوریق فى إدارة المخاطر بالبنوک المصریة

The aim of this research is measuring the role of securitization in risk managements among Egyptian banks, in comparison with the banks that apply securitization and the ones that don’t. And to achieve that aim, the researcher developed main hypothesis which is “there are statistically significant differences among banks that apply securitization and those that don’t”. Also, there are four sub-hypotheses that aim to measure the average non performing loans ratio, debts to total assets ratio, provisions for bank losses ratio, and average of capital adequacy ratio. The researcher reached the following result, the acceptance of the hypotheses that proves the effect of securitization on risk management among Egyptian banks. And the researcher provides the following recommendations: setting up a professional department for securitization, follow a hedging policy in providing credit to decrease the percentage of non-performing loans.

The Role of Employee's Innovative Behavior in Strengthening the Impact of Customer Participation on Customer Engagement

Given the intensive rivalry in the service industry, customer engagement has become a vital concern for the banking sector. This study investigates to what extent do customer participation (CP) impacts customer engagement through the mediating role of employee's innovative behavior. The authors put forward and test a theoretical framework of direct and indirect effects of CP on customer engagement via employee innovative behavior (EIB). Hypothetically, CP coupled with EIB is likely to influence customer engagement (CE). Empirical results based on a sample of 336 customers in Egyptian banks proved that customer engagement composed of three main dimensions: affective, cognitive, and behavioral. In addition, the findings support the hypotheses. Results also indicate that CP provides a basis for EIB and CE. Thus, the authors conjecture that CP and EIB improve customer engagement. Accordingly, they encourage Egyptian banks to cultivate their CP for harnessing their EIB in order to boost CE in the long run.

التطویر التنظیمى ودوره فی تحسین الأداء: دراسة تطبیقیة على العاملین بالبنوک المصریة

يهدف البحث الحالي التعرف على دور التطوير التنظيمي في المساهمة في تحسين الأداء لدى عينة من المديرين في المستويات الإدارية الثلاث (العليا-الوسطى-التنفيذية) في بعض البنوک المصرية، وقد استخدمت الباحثة المنهج الوصفي، وتکونت عينة الدراسة من 52 فرد، تم توزيع الاستبيانات عليهم، تم استرد 48 استبانة منهم صالحة للتحليل، وبعد التأکد من صدق وثبات الأداة أفرز البحث مجموعة من الاستنتاجات أهمها وجود علاقة بين التطوير التنظيمي وتحسين الأداء لدى الموظفين.This study aims to identify the role of organizational development in contributing to improving the performance of a sample of managers at the three administrative levels (upper-middle-executive) in some Egyptian banks. The researcher used the descriptive approach, and the study sample consisted of 52 male and female employees, were distributed Questionnaires on them, 48 were recovered. The data were analyzed using the statistical package for Social Sciences (SPSS), simple regression and variance tests were used. The study reached the following results: There is a relationship between organizational development and improving employee performance.

The Impact of Employee Engagement on Job Performance and Organisational Commitment in the Egyptian Banking Sector

During the past two decades, employee engagement became a very popular managerial construct. Organisations use different engagement building tools in order to stay competitive and improve performance. Though there is an increasing contribution in human resource consulting agencies on the concept of employee engagement, yet there is a shortage of academic studies on that construct, especially in emerging economies countries. This engagement gap grew more in importance amidst the waves of ongoing recession and resource scarcity battles prevailing in the Middle Eastern Region, in general, and in Egypt in particular. This is an exploratory study that aims to identify the key drivers of employee engagement within the Egyptian context. It also studies the impact of employee engagement on job performance and organisational commitment based on social exchange theory (SET). A survey questionnaire was developed and validated. Regression analysis was used to predict and explain the proposed relationships. The study was conducted on 245 bank employees from several private and public banks operating in Cairo-Egypt with a response rate of about 81.6 % ( 200 employees) Pearson correlation matrix and regression were used to predict and estimate the relationships. Regression results indicated that leadership and organisational justice were the most significant drivers of employee engagement.. The mediation effect was confirmed. Employee engagement had significant impact on job performance, but less impact on organisational commitment. This study adds to the very few academic studies that have empirically investigated a comprehensive model of employee engagement drivers and outcomes. To the best of the author's knowledge, such a study is the first of its kind undertaken in the Egyptian context.

Removal of heavy metals from wastewater by natural growing plants on River Nile banks in Egypt

Abstract Green remediation is a known technology that uses different types of plants to extract contaminants from the environment. This study aims to remove heavy metals from treated wastewater by using natural growing plants on River Nile banks in Egypt. Secondary treated effluent was collected from West Gerga wastewater treatment plant, located in Sohag city, Egypt. Experiments using two types of aquatic plants were carried out. They were planted individually and in combination with different densities on the secondary treated wastewater surface for 10 days' retention time to remove cadmium (Cd), nickel (Ni) and lead (Pb). It was concluded that both plants have high capabilities to remove heavy metals directly from treated wastewater. The removal efficiency of Cd and Pb was higher when they were planted together than when individually planted. A positive relationship was observed between detention time and heavy metals removal. The removal efficiency of heavy metals increased with the increase of plant density for both plant types. Also, the availability of aquatic plants and their free cost makes their use an economically attractive alternative. In addition, the removal of these plants from River Nile improves the performance of water distribution networks in Egypt.

Customer brand engagement impact on brand satisfaction, loyalty, and trust in the online context. Egyptian Banking Sector

Customer brand engagement impact on brand satisfaction, loyalty, and trust in the online context. Egyptian Banking Sector

Using Unsupervised Machine Learning Techniques for Behavioral-based Credit Card Users Segmentation in Africa

Given the fierce competition that has come up because of evolving FinTech and e-payment industries in the global market, the credit card industry has become extremely competitive. To survive, financial institutions need to offer their credit card customers with more innovative financial services that provide a personalized customer experience beyond their banking needs. While we are witnessing this high competition that aims to provide better services to credit card holders, Africa risks remaining behind once again: in 2017, the World Bank reported that only 4.47% of Africans aged 15 and above hold a credit card. In this paper, we define and describe the steps that can be taken to build a behavioral-based segmentation model that differentiates African credit cardholders based on their purchases data. We focus on African customers and African financial institutions as (i) little has been done so far when it comes to understanding the spending behavior of African credit card holders; and (ii) because we believe that this segmentation will allow boosting credit card usage in Africa, thus allowing Africans to fully benefit from credit cards as other parts of the world do. The results of this research can help tailor the market campaign to make them customer- centric and reduce the associated marketing costs. We show the proposed approach at work using anonymized credit card data of one the leading banks in Egypt, the Commercial International Bank of Egypt.

The Impact of the Basel Capital Requirements on The Performance of Egyptian Banks

The study investigated The Impact of the Basel Capital Requirements on The Performance of Egyptian Banks, using 14 years of data, which cover the period 2004-2018. This thesis empirically investigates two issues. Firstly, Research of difference in financial performance after the application of Basel II in terms of capital adequacy for the period (2004-2007) to the period (2009-2012). Secondly, Investigate the Impact of the Basel Capital Requirements on The Performance of Egyptian Banks, by research to effect of Capital Adequacy in the period (2009-2018) on Financial Performance. through A Return on Equity, Return on Assets, Net Interest Margin and Non-Performing Loan as dependent Variable, On the Other Hand Independent Variable Represents Capital Adequacy Ratio and Controlled Variable Are Bank Size and Time Period.For the first issue, the results of the study found Financial Indicators (ROA&ROE&NIM&NPL) Improved After the Application of Basel II With Capital Adequacy. For the second issue, the results of the study found positive Relationship between Return on Equity, Return on Assets, Net Interest Margin and Capital Adequacy Ratio on The Other Hand The results of the study found negative Relationship between Non-Performing Loan and Capital Adequacy Ratio.

The Effect of the Arab Spring on the Performance of Islamic and Conventional Banks in Egypt: Which Model Performs Better Amidst Crisis?

This empirical study analyzes financial institutions and performance in times of external crisis and whether a difference in performance between Islamic (IBs) and conventional (CBs) bank models exists. Egypt surrounding the Arab Spring (2009-2013) is taken as a case study, comparing 6 CBs and 3 IBs. Financial ratio analysis is the main method employed, allowing performance to be measured by efficiency, capital adequacy, profitability, solvency, liquidity, and credit risk performance. Due to small sample size, the nonparametric Mann-Whitney U test and effect size analysis assess the significance of the ratio analysis results. Results show CBs have superior performance in all indicators other than Cost-Income and NIM. Efficiency performance for both models were equally volatile or alternately stable with progression through the crisis, while IBs increased capital adequacy and solvency during the crisis. IBs profitability was significantly negatively impacted by the crisis, other than related to NIM, while CBs increased profitability rates. IBs liquidity worsened, then improved midway through the crisis while CBs stabilized liquidity rates throughout. IBs improved credit risk midway through the crisis while CBs declined. Nonparametric results hold observed differences are insignificant and have weak effect size for all but the TENL ratio.

دور تکنولوجیا المعلومات فی تحقیق جودة الخدمات المصرفیة الإلکترونیة بالجهاز المصرفی المصری من وجهة نظر العملاء (دراسة تطبیقیة على عملاء بنوک القطاع الخاص التجاریة العاملة فی صعید مصر)

استهدفت هذه الدراسة التعرف على دور تکنولوجيا العلومات في تحقيق جودة الخدمات المصرفية الإلکترونية من وجهة نظر العملاء، حيث تمثل مجتمع الدراسة في القطاع المصرفي المصري، وبالتحديد بنوک القطاع الخاص التجارية العاملة في صعيد مصر، کما تمثلت وحدة المعاينة في (العميل) وهو الفرد الذي تقدم له الخدمة أثناء تعامله مع البنوک محل الدراسة. حيث تم تحديد عينة طبقية عشوائية من مجتمع دراسة عدده غير محدد (کبير نسبيا)، وقد تم تحديد حجم العينة بناءا على الجداول الإحصائية، حيث بلغ حجم العينة المختارة (384) بدرجة ثقة 95%، ومستوى معنوية 5%. وقام الباحث بتوزيع قوائم الاستقصاء على البنوک محل الدراسة وفقا لأسلوب التوزيع المتناسب، وقد بلغ عدد القوائم المعادة إلى الباحث والصالحة للتحليل الإحصائي (316) قائمة استقصاء بنسبة استجابة 82.29 %، والتي تعد نسبة جيدة في مجال العلوم الاجتماعية. کما أسفر التحليل الإحصائي عن مجموعة من النتائج من أبرزها: وجود فروق معنوية ذات دلالة إحصائية في إدراک العملاء لأبعاد (جودة الخدمات المصرفية الإلکترونية بصورة إجمالية، الأمان في استخدام الخدمات المصرفية الإلکترونية) وذلک بالنسبة للمتغيرات الشخصية الأتية (المستوى التعليمي، بداية التعامل مع البنک)، وأن هناک فروق معنوية ذات دلالة إحصائية في إدراک العملاء بالبنوک محل الدراسة لأبعاد جودة الخدمات المصرفية الإلکترونية (سهولة الاستخدام، الأمان، السرية)، وذلک بالنسبة للمتغيرات الشخصية الأتية (العمر، المستوى التعليمي، بداية التعامل مع البنک)، کما أشارت نتائج الدراسة أيضا إلى أن عملاء البنوک محل الدراسة لا يختلفون في إدراکهم لأبعاد جودة الخدمات المصرفية الإلکترونية حسب متغير النوع (ذکر / أنثى). بناءا على النتائج التي تم التوصل إليها تم تقديم دلالات الدراسة، کما تم وضع مجموعة من التوصيات التي تساعد إدارة التسويق والعاملين في البنوک المصرية على تحسين جودة الخدمات المصرفية المقدمة للعملاء. Abstract: The study aimed to identify the role of information technology in achieving the quality of e-banking services from the point of view of customers. The study community is represented in the Egyptian banking sector, namely the private sector commercial banks operating in Upper Egypt. The sample size was determined according to the statistical tables. The sample size was (384) With a confidence level of 95% and a significant level of 5%. The researcher distributed the survey lists to the banks under study according to the proportionate distribution method. The number of lists returned to the researcher and valid for the statistical analysis reached (316) a questionnaire with a response rate of 82.29%, which is a good percentage in the field of social sciences. The results of the statistical analysis are as follows: Significant differences in customer perception of the dimensions of (E-banking quality in general, Security in the use of e-banking) for the following personal variables (educational level, beginning of dealing with the bank) , And that there are significant differences in the awareness of customers in the banks under study of the dimensions of the quality of electronic banking services (Ease of use, Safety, Confidentiality), in relation to the following personal variables (Age, Educational Level, Start dealing with the bank). The results of the study also indicated that there is no differences between customers in the study in their understanding of the dimensions of the quality of e-banking services by type variable (male / female). Based on the results reached, the study's semantics were presented and a set of recommendations were developed to help the marketing department and the employees of the Egyptian Banks to improve the quality of the banking services provided to the customers.

Le secteur bancaire et financier égyptien post-printemps arabe : les bénéfices des réformes

L'Égypte s'est engagée depuis 2016, avec le soutien des bailleurs de fonds internationaux, dans un ambitieux programme de réformes économiques. Le flottement de la livre égyptienne et les réformes budgétaires ont permis de freiner la dégradation des finances publiques. Ces mesures ont amélioré les perspectives économiques du pays, mais avec un coût social élevé. Pour alléger ce coût et améliorer les indicateurs socioéconomiques, on trouve le renforcement de l'accès du secteur privé au financement à travers la promotion et la diversification des sources de financement. Mais malgré le développement du système bancaire égyptien, le taux de bancarisation qui était de 14 % en 2014 est passé à 33 % en 2017 et reste l'un des plus faibles de la région. Seuls 4 % des adultes épargnent dans une institution financière formelle. La contribution du système bancaire islamique et de la microfinance au sein de l'économie égyptienne pourrait éventuellement atténuer l'exclusion sociale et financière surtout celle des jeunes et des femmes. La lutte contre l'exclusion sociale constitue ainsi l'un des objectifs majeurs du gouvernement égyptien et des institutions financières internationales. Elle permettrait aux catégories marginalisées de participer à la vie économique et de bénéficier de services bancaires de base. Ces individus pourraient ainsi contribuer à la croissance par notamment une réduction du chômage et de la pauvreté. Classification JEL : G21, O16, O43, O55.

The effects of customer equity and religious motivation on customer retention and switching intention

PurposeThis paper aims to investigate the effects of intrinsic and extrinsic motivations represented in religious motivation and customer equity (CE) drivers, respectively, and switching costs (SCs), on customer’s retention to conventional banks and their switching intention (SI) to Islamic ones in the context of the Egyptian banking sector.Design/methodology/approachBased on the literature, a theoretical model is proposed and examined using structural equation modeling (AMOS) 24. Data were obtained using an intercept sample of 273 conventional bank customers in two major cities in Egypt, namely, Cairo and Giza.FindingsThe results supported the positive effect of CE and SCs on customer retention (CR) to conventional banks. Value equity has direct positive effect on CR. In addition, SC significantly mediated the relationship between relationship equity (RE) and service encounter employee’s equity (SEEE) and CR. Finally, religious motivations positively and significantly influence customers SI to Islamic banks.Practical implicationsCE, including all its drivers, namely, value, brand, relationship and SEEE, are the best force of CR in the Egyptian banking sector. The mediating role of SC in the relation between RE and SEEE and CR is perceived as a barrier to switch, instead of reflecting real desire from customers to stay tuned to their conventional banks. In addition, religious motivation should be considered while planning banking services because of its significant direct effect on customers SI from conventional banks to Islamic ones. Finally, both utilitarian extrinsic motivation and hedonic intrinsic ones are influencing customer’s retention and SI, respectively.Originality/valueThis paper develops and adds a fourth driver to previously examined and validated CE drivers, namely, SEEE. Further, it provides empirical analysis to the effect of religious motivation and CE drivers on SCs, CR and SI in a developing and Islamic dominating context, namely, Egypt. Moreover, it introduces a framework that could be examined and validated in other Islamic contexts to further comprehend bank customers' switching behavior. Yet, the current research focused on the Egyptian banking sector only, where the individual customers represent the sampling unit.

Financial Inclusion in Egypt: Does It Affect Banks’ Profitability and Liquidity?

The purpose of this study is to investigate the association between financial inclusion and levels of profitability and liquidity of Egyptian banks. Two hypotheses are tested; the first is about whether financial inclusion has an impact on the Egyptian banks’ profitability, and the second is about whether financial inclusion has an impact on the Egyptian banks’ liquidity. Data of Egyptian banks for the period from 2012 to September 2018 are used to test the hypotheses of the study. Financial inclusion is measured by the access and usage measures derived from the G20 summit “Global partnership for Financial Inclusion”, profitability and liquidity are measured by multiple agreed-upon measures. The study which employed various regression models reveals that 53% of the variance in the Egyptian banks’ profitability can be explained by the variance in the financial inclusion measures, and that the various measures of banks’ liquidity are significantly affected by financial inclusion.

Assessing the Level of Sustainability in the Egyptian Banking Sector

This research aims to evaluate Egyptian banks’ sustainable performance and to rank them according to the assessing framework criteria. The researchers depended on the 2017 annual reports of 26 Egyptian banks and sustainability reports (if available). Then, the banks were categorized according to their type (public, private, or Islamic). Finally, the banks’ total assets were extracted in order to further categorize the banks into small and large based on the threshold of EGP 75 billion.
 The data from the reports were analyzed using the content analysis application NPV11 to measure the sustainability adoption score. Then, a Kruskal-Wallis test was used to determine if there is a significant difference in sustainability banking performance score of public, private and Islamic sector banks in Egypt. Finally, a Spearman’s Rank Correlation was used to test correlation between bank size and sustainability adoption score.
 The results showed that there are only two banks that have significantly began to adopt sustainability practices from the private sector while no public or Islamic Bank showed any significant implementation. Furthermore, results reveled that there are nine banks with a score greater than zero and this was reasoned to be a result of the initiatives of the Central Bank of Egypt to provide low-interest loans to support small startup enterprises. Then, it was found that there isn’t significant difference in sustainability banking performance score of public, private and Islamic banks in Egypt. Finally, no significant relation between bank size and sustainability adoption score in Egypt was identified.

Determinants of disclosure of intangible assets for the Commercial banking sector in Egypt

This study examined the determinant of Commercial Banking Sector Intangible Asset Disclosure in Egypt. For the period 2010-2019 a sample of (17) selected banks were used. The thesis was based on the concept of both Ex-post facto and quantitative studies and used secondary data for interpretation. The data gathered were analyzed using descriptive statistics, matrix of correlation and regression of ordinary least square. The result indicated that there is a substantial and negative interaction between bank size and Intangible Asset Disclosure which was statistically significant at 5 per cent significant level while a favorable and significant relationship was reported against Bank Age and Intangible Asset Disclosure which was statistically significant at 1 per cent significance level. The finding shows that all the independent variables of our sampled banks over the 10-year period accounted for 71 percent of the system variation in Intangible Asset Disclosure, while about 29 percent of the total variations were not accounted for, thus captured by the stochastic error term. The study therefore recommends, among others, that a reduction in the size of banks should be encouraged as it enhances the disclosure of intangible assets among banks in Egypt while encouraging the existence of old generation banks (Al Ahly Bank-Bank Misr) as it helps to comply with disclosure policy.

The Pitfalls of Multinational Banking. The Case of Italian Banks in Egypt Before WWII

The activity of Italian banks in Egypt in the first half of the 20th century represents an almost unexplored field of investigation in economic and banking historiography. This article is the first attempt to innovate the Italian banking literature in this area, providing evidence from a country strategically located in the Middle Eastern geopolitical framework. At the same time and more generally, it contributes to the multinational banking literature on the characteristics and criticalities of banks belonging to multinational groups, which are subject to a ‘liability of foreignness’ due to political, geographical and economic differences between the home country and the host economy. The paper addresses the main drivers of success of Italian banks, which were able to occupy primary positions within the Egyptian banking sector despite their relatively modest capital size thanks to an aggressive policy focused on the cotton market. It then highlights the reasons for the subsequent problems these institutes faced, showing the difficulties of a latecomer and capital-poor country, such as Italy, in carrying out a catching-up process aimed at widening its influence over geographical areas considered strategic in terms of political and commercial penetration.

Cost Efficiency, Market Power, Solvency Risk, and Capital Adequacy for Listed Banks in Egypt

This research aims to investigate the stability of Egyptian banks’ performance by measuring causal interrelation measurements between efficiency, market power, banks risk-taking, and capital adequacy variables, which might help decision-makers in banking system to direct their efforts in handling them. The data are collected from Egyptian Information Dissemination for the period from 2013 to 2017 for both income statement and balance sheet. These data are utilized to estimate cost efficiency, market power and calculate the banks risk-taking by using Front 4.1 package and multi-regressions have been applied to measure the causal interrelation between the above-mentioned variables. The results show that Union National Bank Egypt and Export Development Bank have the highest cost efficiency. And, Union National Bank Egypt and Egyptian Gulf Bank have the highest market power, while Suez Canal Bank and Qatar National Bank Alahly have the lowest market power. But low standard deviation range show that there is no significant effort for enhancing neither cost efficiency nor market power. The regression analysis of causal interrelation shows that capital adequacy ratio significantly responds positively to market power and negatively to cost efficiency, as such risk-taking significantly responds positively to both cost efficiency and market power, while both capital adequacy ratio and risk-taking are not responding significantly to each other. And, cost efficiency significantly responds negatively to capital adequacy and positively to both market power and bank risk-taking, moreover market power significantly responds positively to capital adequacy and negatively to both cost efficiency and bank risk-taking. Most results are consistent with literature review except capital adequacy ratio and risk- taking is not responding significantly to each other this may be addressed by some of activated acts of law 88 year 2003 that limit risk-taking for many risk types.

The Possibility Of Using Fair Value Accounting To Improve The Quality Of Accounting Information In Egyptian Banks:, An Applied Study

The Possibility Of Using Fair Value Accounting To Improve The Quality Of Accounting Information In Egyptian Banks:, An Applied Study

Board of directors’ characteristics and bank performance: Evidence from the Egyptian banking sector

This paper examines the impact of the board of directors’ characteristics on bank performance in an Egyptian context. Board of directors’ size and composition diversity in terms of gender, nationality, and independence are used as proxies for the board of directors’ characteristics. Bank performance is measured using the return on assets as an accounting-based profitability indicator besides stock return volatility as a market-based performance indicator while controlling for the bank, regulatory and country-specific characteristics. Regression analysis is performed for a sample of 21 Egyptian banks covering the period from 2012 till 2018. The results show that banks with large boards including a high proportion of female and foreign directors achieve higher performance. Also, the higher is the proportion of independent directors, the lower is the performance, which contradicts with the agency theory proponents. Most importantly, the findings provide empirical evidence that market-based performance indicators react negatively to females’ directorship, while the opposite is found with independent directors as reflected in the positive market reaction. The findings are highly relevant since improved financial performance is one of the key objectives of bank supervisors and regulators to sustain economic growth.