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Egypt Banking Immune to Financial Turmoil
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RNCOS, in its new report "Egypt Banking Sector Analysis", said that on the back of rising demand of corporate loans and expected decline in interest rates, the total bank loans in Egypt are projected to grow at a CAGR of about 9.5% from 2007-08 to 2010-11. Economic stabilization will provide the added thrust to the growth.
As per the research, private businesses in the country are attracting huge investment - both local as well as foreign.
This has resulted in high loan demand from the private business sector. At present, nearly two-third of economic investment is attracted by these business units. Of these, majority of the investment is directed into manufacturing & oil products, mining, transportation and real estate.
With an annual growth of about 10%, we expect that loans to private business sector will account for over 70% of total loans extended by the Egyptian banking sector by June 2011 end.
Further, the global financial turmoil is not likely to impact the Egyptian banking system significantly as the countrys system is primarily dominated by state-owned banks.
Otherwise also, the system is enjoying a highly supportive environment as the authorities of the country have historically shown both their willingness and capability to interfere and to prevent a banking default by any of the banks, irrespective of their relative significance to the system, or their size.
"Egypt Banking Sector Analysis" provides a comprehensive research and prudent analysis on the banking industry of the Middle Eastern country, Egypt. This extensive research will help the clients to identify the market trends and evaluate the leading-edge opportunities critical to the success of the banking market in the country. It gives an overview on the various factors driving the banking industry, together with the forces that are blocking its growth. |
| Time Added : 2008-11-30 13:25:02 |
Source :
arabfinance |
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