Non-performing Loans of Publicly Listed Egyptian Banks and interaction with Macroeconomic Variables | ||||
| التجارة والتمويل | ||||
| Volume 45, Issue 2, June 2025, Page 89-119 PDF (1.34 MB) | ||||
| DOI: 10.21608/caf.2025.434389 | ||||
 View on SCiNiTO | ||||
| Author | ||||
| Wael Moustafa Hassan Mohamed | ||||
| Associate Professor of Finance and Investment ,Faculty of Financial and Administrivia Sciences-Pharos University in Alexandria-(PUA). | ||||
| Abstract | ||||
| This study examines the macroeconomic determinants of loan quality of publicly listed banks in Egypt, primarily the non-performing loans (NPLs). This research uses panel data from 10 listed banks between 2000–2024 and multiple regression analysis to determine NPL macroeconomics determinants namely: GDP growth, exchange rate (EXH), interest rate and unemployment). The results revealed that the GDP growth and exchange rate significantly negatively correlate with the NPLs indicating that the better the economic performance and external financial conditions the higher is the repayment capacity of borrowers and financial stability. On the other side, the results fail to support the predictive power of interest rate and unemployment on NPLs in this study model, probably because fixed interest contracts could limit the liability of the borrowers along with the dominant share of corporate loans over consumer lending. The results highlight the crucial role of economic growth and exchange rate stability as determinants of credit risk and the ability of the Egyptian banking sector to withstand and overcome the challenges it faces | ||||
| Keywords | ||||
| : Non-performing Loans; GDP_Growth; Exchange_Rate; Interest_ Rate; Unemployment Rate | ||||
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