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319848

Measuring the Performance of Working Banks in Egypt

Article

Last updated: 25 Dec 2024

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Tags

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Abstract

Purpose: Paper aims to evaluate the performance of working banks in Egypt.
Design/methodology/approach – This is done via total factor productivity (TFP) and technical efficiency(TE) through Malmquist index and data envelopment analysis (DEA). Data incorporate annual statements from 2010 to 2021 for 26 different sorts of banks. TE and TFP are regressed against bank's size, age, number of branches, and ATMs to detect their impact on TE and TFP.
Findings –  Results  reveal  discrepancy on TE and TFP among banks. Productivity gains are mainly derived from technical progress than efficiency improvements. Moreover, TE scores for net profits and investment indicators have poor performance for all banks. Provided loans' performance is not as hoped relative to collected deposits. Public banks perform better than Arab and foreign banks for size and age. Islamic banks perform better than conventional banks since they have wide range of diversified products that suit clients' preferences. Thus, banks have to  set policies that aim to manage deposits and investments efficiently to enhance performance and profits. Moreover, conventional banks have to diversify products to improve performance. Small and less-productive banks have to merge with large ones to enhance performance.
Originality/value – The paper aims to fill the gap for the lack of papers that measure banking performance in Egypt as a case of developing countries via TFP. Moreover, propose ways to enhance the performance of less-productive and inefficient banks

DOI

10.21608/caf.2023.319848

Keywords

TE and TFP, Deposits, Loans, investments, Net profits, Earning assets

Authors

First Name

Ibrahim

Last Name

Elatroush

MiddleName

-

Affiliation

Faculty of Commerce, Tanta University

Email

ibrahim.elatroush@commerce.tanta.edu.eg

City

-

Orcid

0000-0003-4276-0713

Volume

43

Article Issue

3

Related Issue

43760

Issue Date

2023-09-01

Receive Date

2023-10-03

Publish Date

2023-09-01

Page Start

235

Page End

285

Print ISSN

1110-4716

Online ISSN

2682-4825

Link

https://caf.journals.ekb.eg/article_319848.html

Detail API

https://caf.journals.ekb.eg/service?article_code=319848

Order

319,848

Publication Type

Journal

Publication Title

التجارة والتمويل

Publication Link

https://caf.journals.ekb.eg/

MainTitle

Measuring the Performance of Working Banks in Egypt

Details

Type

Article

Created At

25 Dec 2024