Three-Dimensional Analysis of Bank Profit with the Development of Regulatory Restrictions: Evidence From Egypt

International Journal of Economics and Finance. Vol. 11, No. 3, 2019

20 Pages Posted: 26 Feb 2019 Last revised: 12 Mar 2019

See all articles by Ashraf Helmy

Ashraf Helmy

Independent

Osama Wagdi

International Academy for Engineering & Media Science - IAEMS

Date Written: February 10, 2019

Abstract

This study experienced the effect of different regulatory restrictions and macroeconomic status on banks’ profit in Egypt. The study used factor analysis and event study techniques on data that covered the time period from 2003 to 2016 for banking sector as a whole and individual bank unit using a sample of 13 bank units in Egypt; in addition, the study experienced the performance of common stocks of the bank units in the sample. The study found that the development of regulatory restrictions has a positive effect on the profitability of the banking sector; however, due to the differentiated characteristics of individual bank units, this effect was dissimilar for different bank units in the sample. Finally, the study concluded that if individual bank units play their development role in the economy, they will be able to meet the new set of regulatory restrictions and at the same time achieve high rates of return on their assets.

Keywords: Regulatory Restrictions, Bank Profitability, Basel Committee, Capital Adequacy, Egypt

JEL Classification: G21

Suggested Citation

Helmy, Ashraf and Wagdi, Osama, Three-Dimensional Analysis of Bank Profit with the Development of Regulatory Restrictions: Evidence From Egypt (February 10, 2019). International Journal of Economics and Finance. Vol. 11, No. 3, 2019, Available at SSRN: https://ssrn.com/abstract=3332010

Ashraf Helmy

Independent ( email )

Osama Wagdi (Contact Author)

International Academy for Engineering & Media Science - IAEMS ( email )

Sixth of October
Egypt

HOME PAGE: http://iams.edu.eg

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