Egyptian Banks Research Articles

Virtual organisations for effective economic and technological sustainable development policies in the commercial Egyptian public banking sector

Nowadays, the concept of virtual organisation (VO) denotes a paradigm shift for policymakers and managers targeting to increase the effectiveness of economic and technological sustainable development. Although the growing number of studies devoted to the topic of VO in developed countries, few studies have been directed to study developing countries, especially the MENA region. This study was inspired by the theoretical research framework proposed by Fathy El Dessouky (2011) to examine the relationship between virtual organisations and the effectiveness of economic and technological sustainable development policies in the commercial public banking sector in Egypt. The research examined four distinguished Egyptian commercial public sector banks which have taken serious steps towards e-banking system. A questionnaire with pre-prepared closed-ended questions was distributed to a random sample of 600 employees at the top, middle and executive levels of management but only 500 employees responded to the questionnaire. The results presented and demonstrated the need for specific areas of improvement regarding the VO, in particular, to satisfy the requirements of economic and technological sustainable development policies in developing countries.

THE ROLE OF BANKS IN SUPPORTING THE GREEN ECONOMY AND GREEN BANKING IN EGYPT

The study aimed to identify the concept, characteristics and advantages of the transition to a green economy and its relationship with the Egyptian banking system. Green over the coming years. The study concluded that the green economy is the best way to preserve the environment and stimulate economic growth and eradicate poverty. There is a positive relationship between the volume of credit in the banking system and the volume of credit directed to green projects. The researcher made several recommendations, the most important of which are: The need for banks to establish special systems to finance green projects commensurate with the nature of these projects and the establishment of new banking products in the so-called (green banking). Appropriate, with the establishment of a new specialized department to monitor the credit risk of green projects and take appropriate measures to detect any risks that may face these green projects.

Internet Banking Adaptation in Different Age Ranges

The Internet application has dramatically expanded since the past decade, and such expansion has equally led to the increased risk in the Internet usage, especially in the domain of internet banking. The confidence level among different segments of e-banking users or customers is examined in this study, and the difference in outcomes are explained. Questionnaires were distributed to 315 respondents to obtain data. The obtained results show that different segments of users or customers show different levels of trust towards internet banking usage at Cairo Bank in Egypt. Additionally, different segments of users show different levels of perceived lack of information. Furthermore, the most notable segmentation can be split into three groups as follows: users or customers aged between 18-30, those aged above 60, and the rest. This study is of value to the security and marketing of internet banking services.

On financial development and economic growth in Egypt

PurposeThis paper aims to discuss the evolution of the Egyptian banking sector and the main trends in financial development in Egypt. The purpose of this study is to examine empirically the relationship between the development of the financial sector and economic growth in Egypt between 1980 and 2016.Design/methodology/approachThe paper draws comparisons based on critical financial indicators between Egypt and selected emerging markets and developing economies. It uses a new data set of financial development indexes released by the International Monetary Fund. This paper uses econometric time series modelling of bivariate regressions for real growth per capita and measures of financial development to assess the relationship between financial development and economic growth in Egypt.FindingsThere are three specific findings based on the empirical analysis. First, there is a strong association between real growth per capita and financial development measured by money supply to GDP. Second, access to and the efficiency of banking services are not associated with real per capita income. Third, the Financial Markets Access Index – which compiles data on market capitalization outside of the top ten largest companies and the number of corporate issuers of debt – indicates a robust association with real per capita GDP.Originality/valueThe paper uses advanced empirical investigation techniques and new data sets available to assess the critical relationship between finance and growth in Egypt. The main policy implications of the empirical results of this paper suggest a stronger focus on promoting a more proactive role for the financial services industry in Egypt. In particular, there is a critical role for bank financing to support the private sector to maintain an inclusive growth momentum. Further development of the capital market will promote sustainability of such economic growth.

Real interest rate, income and bank loans: panel evidence from Egypt

Purpose This paper aims to examine the effectiveness of monetary policy on bank loans in Egypt using generalized method of moments (GMM) model. Also, it investigates the impact of bank level variables, namely, total assets, liquidity, capital and income on bank loans. It develops the equation of loans, which is introduced by Ehrmann et al. (2002) using bank level variables such as income and the interaction between income and interest rate. Design/methodology/approach This paper examines the impact of monetary policy shocks on bank loans in Egypt by applying the GMM technique and panel data from 1996 to 2014. Findings The results reveal that real interest rate has a significant impact on bank loans, which indicates that the bank lending channel is effective in Egypt. Furthermore, the bank level variables, namely, banks’ size, liquidity and income have significant effects on bank loans in Egypt, which sustains the heterogeneous effect of monetary policy on bank loans. Therefore, the Central Bank of Egypt (CBE) can adjust interest rate to influence the bank loans and total demand. Research limitations/implications It does not examine the effect of monetary policy on small and large banks in Egypt. Practical implications The policy implications from this paper indicate that the monetary authority in Egypt should adjust interest rate to stabilize the bank loan supply. By stabilizing the bank loans, the monetary authority is able to stabilize investment, consumption and total demand. Social implications The relevance of bank lending channel indicates that the role of commercial banks is very important in transmitting monetary policy shocks to the real sector. Originality/value It is important for the CBE, banks and people because it shows the effectiveness of bank lending channel and the effect of global financial crisis on the Egyptian economy.

Ethical leadership, internal CSR, organisational engagement and organisational workplace deviance

PurposeDrawing on social information processing theory and organisational identity theory, the purpose of this paper is to examine the social and psychological process through which perceived ethical leadership influences employee deviant behaviours towards the organisation. Specifically, a sequential mediation model is developed in which ethical leadership is related to employee perceptions of internal corporate social responsibility (CSR), which, in turn, are related to organisational deviance through organisational engagement.Design/methodology/approachStructural equation modeling was performed to fit the proposed model using multi-source data collected from employees and their supervisors in the Egyptian banking sector.FindingsThe results support the hypotheses, as perceived internal CSR and organisational engagement sequentially mediate the relationship between perceived ethical leadership and organisational deviance.Practical implicationsOrganisations should emphasise fostering ethical leadership through adopting strategies such as hiring ethical leaders and offering ethics training to current leaders. Organisations should also invest in internal CSR activities and should pay attention to regularly communicating their involvement in CSR initiatives to employees.Originality/valueBy examining the mediating roles of employee internal CSR perceptions and organisational engagement, this study helps advance our understanding of the social and psychological processes of ethical leadership.

Organizational enablers of business process reengineering implementation

PurposeThe purpose of this paper is to investigate the main organizational factors that contribute to the successful implementation of business process reengineering (BPR) in the Egyptian banking sector. These factors include management commitment, information technology (IT) infrastructure, people management, change readiness, centralization and formalization.Design/methodology/approachThe key organizational enablers were identified through an extensive literature review. Then, statistical analysis was carried out based on data collected, using a questionnaire instrument, from 184 managers employed in 38 banks operating in Egypt.FindingsThe results of the study indicate that management commitment, IT infrastructure, people management, change readiness and organizational structure with a low degree of formalization are critical enablers for implementing a successful BPR program within the Egyptian banking sector.Practical implicationsThe results may support managers of banks in identifying and assessing the influence of integrating organizational factors that facilitate or hinder the successful implementation of BPR.Originality/valueSince 2004, the Egyptian banking system has involved in major reform programs and many BPR efforts. Much research effort is required to investigate the BPR projects within the Egyptian banks in order to develop a concrete base of knowledge and understanding of the nature of BPR and factors that support its successful implementation. Moreover, there is an insufficiency of empirical studies regarding the implementation of BPR within the Egyptian service sector. The current study fills this gap by exploring and examining the main organizational factors affecting BPR implementation in a developing country.

Monetary-fiscal policies interactions and optimal rules in Egypt

Purpose This paper aims to estimate a New Keynesian small open economy dynamic stochastic general equilibrium (DSGE) model for Egypt using Bayesian techniques and data for the period FY2004/2005:Q1-FY2015/2016:Q4 to assess monetary and fiscal policy interactions and their impact on economic stabilization. Outcomes of monetary and fiscal authority commitment to policy instruments, interest rate, government spending and taxes, are evaluated using Taylor-type and optimal simple rules. Design/methodology/approach The study extends the stylized micro-founded small open economy New Keynesian DSGE model, proposed by Lubik and Schorfheide (2007), by explicitly introducing fiscal policy behavior into the model (Fragetta and Kirsanova, 2010 and Çebi, 2011). The model is calibrated using quarterly data for Egypt on key macroeconomic variables during FY2004/2005:Q1-FY2015/2016:Q4; and Bayesian methods are used in estimation. Findings The results show that monetary and fiscal policy instruments in Egypt contribute to economic stability through their effects on inflation, output and debt stock. The monetary policy Taylor rule estimates reveal that the Central Bank of Egypt (CBE) attaches significant importance to anti-inflationary policy and (to a lesser extent) to output targeting but responds weakly to nominal exchange rate variations. CBE decisions are significantly influenced by interest rate smoothing. Egyptian fiscal policy has an important role in output and government debt stabilization. Additionally, the fiscal authority chooses pro-cyclical government spending and counter-cyclical tax policies for output stabilization. Again, past values of the fiscal instruments are influential in the evolution of the future fiscal policy-making process. Originality/value A few studies have examined the interaction between monetary and fiscal policy in Egypt within a unified framework. The presented paper integrates the monetary and fiscal policy analysis within a unified dynamic general equilibrium open economy rational expectations framework. Without such a framework, it would not be easy to jointly analyze monetary and fiscal transmission mechanisms for output, inflation and debt. Also, it would be neither possible to contrast the outcome of monetary and fiscal authorities commitment to a simple Taylor instrument rule vis-à-vis optimal policy outcomes nor to assess the behavior of monetary and fiscal agents in macroeconomic stability in context of an active/passive policy decisions framework.

Does Financial Inclusion Improve the Financial Performance of Commercial Banks in Egypt?: Pooled OLS Approach

Financial inclusion is gaining acceptance in Egypt as a prominent policy toward the economic reform during the last few years. However, there is relative dearth of em1 pirical studies examining the impact of financial inclusion on the performance of banks in Egypt. This paper fills this gap. Using Pooled Ordinary Least Square (OLS) of six commercial banks listed in the Egyptian stock market over the period from 2013 to 2018, this study empirically investigate the impact of financial inclusion on the performance of Egyptian banks measured in terms of Return on Assets (ROA) and Return on Equity (ROE). Financial inclusion is measured subject to two main dimensions- the access to financial services and utilization of bank account and its related financial services. Due to the difficulty of getting data, the usage dimension is taken for the side of individuals only and ignores SMEs such as credit card; loan; deposit for SMEs. Results showed that financial inclusion positively contribute to banks’ ROA and ROE.

RESTRUCTURE AS A PROPOSED APPROACH FOR IMPROVING FINANCIAL PERFORMANCE IN THE MAIN BANK FOR DEVELOPMENT AND AGRICULTURAL CREDIT FROM AN ENVIRONMENTAL PERSPECTIVE

The banking reformation program adopted by Egyptian banks and supported by the state’s powers drives at reinforcing its validity and credibility, so, the Egyptian Agricultural Bank (Ex-Development and Agricultural Credit) in order to go through this experience, by this a good internal and external reputation under the environment Law no. (4), of 1994 and revised by Law no. (9), of 2009. The restructure processes are targeting a procedure of necessary correction of technical, economic, and financial structures of an organization from an environmental perspective in a way that enables banks to survive in business world. In Light of the research and expected implementation of the process of restoring the financial structure, a comparative analytical study is conducted to measure the effect of some problems affecting the banking performance as a basis for reaching a proposed accounting framework to restore the financial structure from the environmental perspective, the research is based on the use of SPSS method by determining the T test F test as well as the use of quantitative analytical descriptive method based on the design and application of simple and multi–step regression model to reach the results. The research includes two types of variables: the independent variable is the restructuring of the financial structure – the control and administrative restrictions – the sovereign declarations – the efficiency of the work – the efficiency of the productivity and the dependent variable includes the maximization of profitability and derived from it (reducing costs – improving efficiency performance – maximizing profits- incentives- System of Credit and Marketing). This research recommends that banks in general, and the Egyptian Agricultural Bank in particular should focus and optimal utilization of resources and available opportunities; focusing as well on the relative advantage of the bank, as it becomes the launching point using modern technology.

Early Intervention Proposal Assisting Special Needs Children and Empowering Families

Statistics: A survey carried out by the World Bank in Egypt, Jordan and Yemen estimated that between 5% and 10% of children under age 18 have at least one type of disability; many of these children face health, educational, social and psychological problems [World Bank, 2004]. A community-based study carried out in Jeddah, Saudi Arabia, found that speech, motor or mental disabilities were most common. Mission: To actively seek out children from neglected and difficult to reach areas, and be sensitive to the families’ needs. Our goal is to ensure the highest standards of excellence for evaluations, initial and ongoing service coordination, and home, community, and/or office facility based therapeutic services for all our families.

Early Intervention Proposal Assisting Special Needs Children and Empowering Families

Statistics: A survey carried out by the World Bank in Egypt, Jordan and Yemen estimated that between 5% and 10% of children under age 18 have at least one type of disability; many of these children face health, educational, social and psychological problems [World Bank, 2004]. A community-based study carried out in Jeddah, Saudi Arabia, found that speech, motor or mental disabilities were most common.

The efficiency of Islamic banks versus conventional banks: an empirical study of an emerging economy

The purpose of this study is to investigate the efficiency of two different banking systems operating in Egypt (Islamic versus conventional banks). A sample of 35 banks has been used to examine the technical efficiency before and after the financial crisis using data envelopment analysis model. Evaluating the technical efficiency of Egyptian banks will enable policymakers to support which banking system is more efficient to facilitate the financial inclusion and enhance the economic development.Before the financial crisis, conventional banks outperformed conventional banks with Islamic windows and Islamic banks, scale technical efficiency outperformed pure technical efficiency when analyzing conventional banks and conventional banks with Islamic windows. In terms of Islamic banks, pure efficiency outperformed scale efficiency. After the financial crisis, technical efficiency of all banks decreased. However, pure technical efficiency of Islamic banks has improved as a result of the quality of management and outperformed both conventional banks and conventional banks with Islamic windows. These results imply that Islamic banks have not been affected by the financial crisis. Therefore, the increased adoption and support of the Islamic banks in Egypt is addressed to develop the economy and push forward entrepreneurship projects, support the financial inclusion and the informal economy integration.

Usefulness of nucleic acid testing among negative HBs Ag blood donors in Egypt

IntroductionHepatitis B viral infection has been transmitted from donors with HBV infections who have negative HBs Ag. Many countries have implemented nucleic acid testing (NAT) to screen donors with non- reactive HBs Ag for detection of HBV DNA and enhance safety of blood transfusion, while it is restricted to limited blood banks in Egypt. ObjectiveTo evaluate the significance of NAT technology in detection of HBV DNA in the Egyptian blood donors with HBs Ag non- reactivity. MethodsThe study included 36,584 collected blood samples from volunteer blood donors at the blood bank of Zagazig University Hospitals. Each specimen was tested for HBs Ag; non- reactive sera were further tested for qualitative detection of HBV-DNA by NAT testing. All positive HBV-DNA donors were tested for anti- HBc and anti- HBs by electro-chemiluminescence immunoassay and confirmed by quantitative RT-PCR. ResultsAmong 34,671 donors non-reactive to HBs Ag, 34,657 (99.96%) were tested negative for HBV- DNA and 14 specimens (0.04%) were positive for HBV via NAT testing. Among HBV NAT positive donors, HBs Ab reactive only in (2); HBc Ab reactive only in (3); HBs and HBc Abs reactive in (3) while HBs and HBc Ab non-reactive in (6). All tested sera 14 (100%) showed low viral load for HBV (<50 IU/ml) confirmed by RT- qPCR. ConclusionOur results highlighted the significance of the HBV NAT technique to reduce the potential risk of HBV transfusion-transmission and the critical need to enforce the usage of NAT technology in all blood banks in Egypt.

The Relationship between E-Service Quality and E-Customer Satisfaction: An Empirical Study in Egyptian Banks

E-Service has become of great importance to both companies and researchers alike during the last decade. So, E-Service helping the banks in building a good relation-ship with their customers. However, The main aims of this study are to investigate. Does E-Service Quality affect E-Customer Satisfaction in Egyptian Banks? the study collected 140 surveys from respondents who use online service in different branches banks located in Cairo City in Egypt. Factor analysis has shown a significant impact between e-service quality and e-customer satisfaction. The regression analysis showed a significant correlation between all the variables of the e-service quality and e-customer satisfaction except Empathy.

Brand Equity Role in Customers Planned Behavior in the Egyptian E-Banking Sector

Abstract The purpose of this paper is to investigate the impact of Brand Equity dimensions on customers planned behavior of the e-banking services in the Egyptian banking sector. Therefore, a questionnaire had been adopted and directed to customers of e-banking services in the Egyptian context. Results revealed that there is a significant positive effect of all brand equity dimensions; Awareness, Association, Loyalty and perceived service quality on Subjective Norms, while there had been a significant effect of Awareness, Association and perceived service quality on Attitude. Finally, a significant positive effect was found for Awareness and Association only on Perceived Behavior Control.

Moderating Effects of Dynamic Managerial Capabilities on Heterogeneous Workplaces: A Case Study of Private Banks in Egypt

Purpose - The purpose of this study is to present strategies that banking organizations might adopt to utilize the heterogeneity and generational differences for better workplaces. Workforce diversity has been identified as one of the strategic capabilities that will add value to the organizations over their competition. As one of the most globally competitive sectors, the banking industry faces the challenge of attracting highly skilled and extremely innovative employees while retaining valuable senior employees to make use of their expertise in an inclusive setting. . As such, an understanding of heterogeneity and generational differences may be used as a tool by managers to improve employee productivity, innovation and to create good corporate individuals. Data was collected from a target population from seven general managers of private banks operating in Egypt who were managing through the multigenerational phenomenon. The paper will utilize the Resource-based view (RBV) framework as a complementary theory based on the assumption that organizations differ according to the heterogeneity of their resources.Design/methodology/approach - This study adopts a qualitative approach and presents findings based on a series of semi-structured interviews with senior managers of the Private Banks operating in Egypt.Findings - The findings show that resource idiosyncrasy, deployment, utilizations and organizational culture accommodate dynamic managerial capabilities (DMC) to achieve sustainable competitive advantage (SCA) in the multigenerational heterogeneous workplace. By analysing the components of the VIRO model that reviews resource characteristics that could lead to sustain competitive advantage, the findings of the current research revealed DMC as an underestimated moderator for achieving the SCA.Practical implications - The practical implication of this study is to extend generational research by investigating the effect of inclusion and the importance different generations place on the presence of various workplace characteristics. Organizations are exploring the inclusion of workforce diversity against the traditional structure. A private bank’s workforce has employees from different countries, cultures, generations and genders. This heterogeneity has positioned private banks as a striking foreign investment destination due to their mature and experienced workforce. Managerial capabilities and skills can utilize the challenges resulting from such wider heterogeneity in a multidisciplinary approach for achieving sustained competitive advantages. Thus, workforce heterogeneity is regarded as an asset for private banks for connecting with businesses all over the world and for enabling foreign communities to conduct their business within its location.Originality/value - The paper originated from the researchers’ own unique investigation into the employment market from a managerial standpoint. Little qualitative research has been thus far published regarding how organizations hire highly skilled and extremely innovative people to work while maintaining old employees to make use of their expertise in an inclusion setting. Particularly, the notion of adapting a Resource -Based View to illustrate how heterogeneity and generational differences may be used as a tool by managerial capabilities to improve employee productivity, innovation and to create good corporate individuals is also a new area for academic research.

Determining factors that affect risk disclosure level in Egyptian banks

This study aims to measure the risk disclosure level in Egyptian banks and to investigate its determinants. The sample consisted of 28 banks during the period from 2010 to 2017. An unweighted risk disclosure index including six categories was used: credit risk, market risk, liquidity risk, capital structure and adequacy risk, operational risk, and other non-financial risks. Also, a content analysis approach was used to measure the actual level of risk disclosure. The findings demonstrated that there was an average level of total risk disclosure of all sample banks. The results showed that banks with a higher percentage of independent board membership, large board size, large audit committee size, duality, higher institutional ownership, and banks audited by one of big four audit firms were more motivated to increase risk disclosure. Also, the results showed that leverage, bad news, and bank social responsibility have a negative relationship with the level of risk disclosure. Overall, the results indicated that leverage, board size, audit committee size, auditor types, independence, duality, institutional ownership, bank social responsibility, and bad news are the main factors affecting the level of risk disclosure in Egyptian banks. The findings of this paper have a number of important implications. The risk disclosure in the banking sector is important for stakeholders such as investors and depositors. Also, risk disclosure index helps the regulatory bodies to evaluate the risk disclosure practice in Egyptian banks. This paper contributes to analyzing factors affecting banks managers’ decision to disclose risk information in emerging countries such as Egypt.

SOCIAL AND ENVIRONMENTAL IMPACT OF THE CULTIVATION OF JATROPHA USING AGRICULTURAL DRAINAGE WATER IN SIWA OASIS

The term is used to express a natural phenomenon in desert areas. It is a low-lying isolated area surrounded by desert from each side. Siwa Oasis is a natural depression in Western Sahara, which has a low altitude of about 23 meters below sea level. It has an area of ​​about 250,000 feddans, of which about 209,400 feddans are cultivated and irrigated through a number of wells and springs. As a result of continuous and continuous flow of water in excess of 33 million m3 (Fathi Hammad, 2001) , In the absence of an efficient and efficient sewage system, in addition to the low efficiency of the existing drainage system, the water accumulation and accumulation of water in the low areas of the oasis has created a number of lakes, causing the problem of rising water level, Negatively affect their productivity and threaten the entire ecosystem of the oasis. The study aimed to identify the most important returns and costs that affect the cultivation of jatropha and the economic feasibility of planting them. The research relied on both descriptive and quantitative methods. The results proved an IRR of about 27%, which is higher than the opportunity cost available. For the investment in Egyptian banks for 2018, which is an interest rate of about 17%, and the rate of return on costs was estimated at1.6 and the net present value (91025.6), The study recommended the exploitation of agricultural waste water economically as a waste resource causing many economic and environmental problems and encouraging investments in this field. dunes, and the provision of new jobs by increasing the areas of new land, and recommended the research the need to exploit agricultural wastewater economically as a waste resource causing many economic and environmental problems and encourage investments in This area.

Determinants of Accounting Measurement of Relational Capital and Competitive Advantage: Study on Egyptian Banking Sector

Determinants of Accounting Measurement of Relational Capital and Competitive Advantage: Study on Egyptian Banking Sector