Proceedings of The 8th International Conference on Business, Management and Economics
Year: 2023
DOI: https://www.doi.org/10.33422/8th.icbmeconf.2023.08.100
[PDF]
The Impact of Monetary Policy on The Financial Stability of The Banking Sector (An Applied Study to Egyptian Banks From 2010 To 2021)
Wisam Mohamed Abd Elkader Kasem, Ashraf Salah Eldin, and Taha Kassem
ABSTRACT:
The researcher sought to identify the impact resulting from the application of monetary policy in achieving banking stability during the period from 2010-2021, and whether these policies led to improving the indicators on which the study relied in measuring banking stability, represented in (non-performing debts – NPL – and Z-Index). In Egyptian banks, where Egyptian banks have worked to develop performance in line with the requirements of the Central Bank of Egypt with regard to setting standards that preserve the assets of these banks, especially assets related to bank credit, where the study population consisted of all Egyptian banks and they counted (38) commercial banks based on the annual report of the Central Bank of Egypt for the year 2021. The results concluded that there is a statistically significant effect of monetary policies on banking stability in Egyptian commercial banks (governmental – joint investment – foreign), where the results showed that monetary policies affect banking stability as measured by the Z-Index by a determination coefficient of (Cox). & Snell) with an explanatory power of 29.51%, and the coefficient of determination of (Nagelkerke) showed an explanatory power of 31.25% in light of the introduction of regulatory variables (inflation – ownership structure – bank size), in addition to the fact that monetary policies affect banking stability as measured by the non-performing loan ratio (NPL) with a coefficient of determination For (Cox & Snell) it is 33.62%, and the coefficient of determination for (Nagelkerke) is 35.99% in light of the introduction of the regulatory variables (inflation – ownership structure – bank size).
Keywords: Monetary policy, financial stability, non-performing debts, banking sector