The dynamics behind private banking growth in Egypt
Abstract The research investigates the determinants of private banks profitability in Egypt. The determinants are bank specific (liquidity, capital adequacy, bank size, asset structure, credit risk, and non-performing loans), industry-specific (industry concentration and banking industry development...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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SpringerOpen
2024-01-01
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| Series: | Future Business Journal |
| Subjects: | |
| Online Access: | https://doi.org/10.1186/s43093-023-00290-5 |
| _version_ | 1797363269915115520 |
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| author | Doaa M. Salman Abdou Yomna Alarabi |
| author_facet | Doaa M. Salman Abdou Yomna Alarabi |
| author_sort | Doaa M. Salman Abdou |
| collection | DOAJ |
| description | Abstract The research investigates the determinants of private banks profitability in Egypt. The determinants are bank specific (liquidity, capital adequacy, bank size, asset structure, credit risk, and non-performing loans), industry-specific (industry concentration and banking industry development), and macroeconomics (economic growth and inflation). It is an empirical study applying a quantitative method for data analysis and the type of data is secondary data. The sample size of the research is 15 private banks on the Egyptian and the panel data for the research is 2013–2022. The multiple linear regression analysis using the Eviews 12 application as an analytical tool by applying generalized least squares model. The profitability of private banks, which is the dependent factor, is calculated by two measurements, Return on Assets and Return on Equity with ten determinants of profitability as independent variables. Results indicate that capital adequacy, economic growth bank size, and inflation has a positive significant effect on private banks profitability in Egypt. While NPL, liquidity and credit risk have significant negative effect on private banks profitability in Egypt. Based on the results recommendations are provided for bank management to maximize their profitability. |
| first_indexed | 2024-03-08T16:18:55Z |
| format | Article |
| id | doaj.art-f8772df1c0254f6e8d6777c621975586 |
| institution | Directory Open Access Journal |
| issn | 2314-7210 |
| language | English |
| last_indexed | 2024-03-08T16:18:55Z |
| publishDate | 2024-01-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Future Business Journal |
| spelling | doaj.art-f8772df1c0254f6e8d6777c6219755862024-01-07T12:27:46ZengSpringerOpenFuture Business Journal2314-72102024-01-0110111110.1186/s43093-023-00290-5The dynamics behind private banking growth in EgyptDoaa M. Salman Abdou0Yomna Alarabi1Faculty of Management Sciences, October University for Modern Sciences and ArtsDepartment of Accounting, Faculty of Management Sciences, October University for Modern Sciences and ArtsAbstract The research investigates the determinants of private banks profitability in Egypt. The determinants are bank specific (liquidity, capital adequacy, bank size, asset structure, credit risk, and non-performing loans), industry-specific (industry concentration and banking industry development), and macroeconomics (economic growth and inflation). It is an empirical study applying a quantitative method for data analysis and the type of data is secondary data. The sample size of the research is 15 private banks on the Egyptian and the panel data for the research is 2013–2022. The multiple linear regression analysis using the Eviews 12 application as an analytical tool by applying generalized least squares model. The profitability of private banks, which is the dependent factor, is calculated by two measurements, Return on Assets and Return on Equity with ten determinants of profitability as independent variables. Results indicate that capital adequacy, economic growth bank size, and inflation has a positive significant effect on private banks profitability in Egypt. While NPL, liquidity and credit risk have significant negative effect on private banks profitability in Egypt. Based on the results recommendations are provided for bank management to maximize their profitability.https://doi.org/10.1186/s43093-023-00290-5Private banks profitabilityEgyptROAROEBank sizeCredit risk |
| spellingShingle | Doaa M. Salman Abdou Yomna Alarabi The dynamics behind private banking growth in Egypt Future Business Journal Private banks profitability Egypt ROA ROE Bank size Credit risk |
| title | The dynamics behind private banking growth in Egypt |
| title_full | The dynamics behind private banking growth in Egypt |
| title_fullStr | The dynamics behind private banking growth in Egypt |
| title_full_unstemmed | The dynamics behind private banking growth in Egypt |
| title_short | The dynamics behind private banking growth in Egypt |
| title_sort | dynamics behind private banking growth in egypt |
| topic | Private banks profitability Egypt ROA ROE Bank size Credit risk |
| url | https://doi.org/10.1186/s43093-023-00290-5 |
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