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Macro-Financial Linkages in Egypt :, A Panel Analysis of Economic Shocks and Loan Portfolio Quality, Inessa Love, Rima Turk

Contributor
Abstract
This paper investigates macro-financial linkages in Egypt using two complementary methods, assessing the interaction between different macroeconomic aggregates and loan portfolio quality in a multivariate framework as well as through a panel vector autoregressive method that controls for bank-level characteristics. Using a panel of banks over 1993-2010, the authors find that a positive shock to capital inflows and growth in gross domestic product improves banks’ loan portfolio quality, and that the effect is fairly similar in magnitude using the multivariate and panel vector autoregressive frameworks. In contrast, higher lending rates may lead to adverse selection problems and hence to a drop in portfolio quality. The paper also reports that a larger market share of foreign banks in the industry improves loan quality
Table Of Contents
Cover; Abstract; Contents; I. Introduction; II. Literature Review; III. Data and Methodology; A. Data; Tables; 1. Market Share in Assets of Commercial, Islamic, and Specialized Banks, 1993-2010; Figures; 1. Size of the Banking Sector, 1993-2010 (Figures in Million USD); 2. Market Share in Assets of State, Domestic, and Foreign Banks, 1993-2010; 2: Market Share in Loans, State vs. Foreign Banks, 1993-2010; 3: Market Share in Treasury Bills, State vs. Foreign Banks, 1993-2010; 4: Portfolio Composition, State vs. Foreign Banks, 1993-2010
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (41 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781484338896

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