Profitability and Risk Management in Banking: A Comparative Analysis of Egypt and Lebanon

Abstract

We investigate the profitability and risk management in banking in two prominent countries in Middle East and North Africa (MENA), Egypt and Lebanon, where banks operate under market-oriented economic regimes. The study covers the 1990s which witnessed banking sector reforms towards a more efficient financial system. Noting the differences in the structure of the banking system and the monetary changes in Egypt and Lebanon, we investigate the impact of liquidity, credit, and capital on bank profitability in each country's banking sector. Based on our findings, we draw conclusions on the strength of risk management practices and enforcement of banking regulations.

Citation

Hakim, S. and Neaime, S. (2005), "Profitability and Risk Management in Banking: A Comparative Analysis of Egypt and Lebanon", Neaime, S. and Colton, N.A. (Ed.) Money and Finance in the Middle East: Missed Oportunities or Future Prospects? (Research in Middle East Economics, Vol. 6), Emerald Group Publishing Limited, Leeds, pp. 117-131. https://doi.org/10.1016/S1094-5334(05)06006-1