The present research provides a theoretical analysis for the different reforms that had been undertaken in the Egyptian banking sector since the adoption of the open door policy in 1974 until the latest reform plan that had been implemented by the Central Bank of Egypt in 2004 and finalized in the first quarter of 2012. In addition, it provides an analysis for the banking sector development indicators in Egypt. It was found that the different stages of reforms that had been undertaken have resulted in the development of the banking sector in Egypt.