Best Seller Macro-Financial Linkages in Egypt: A Panel Analysis of Economic Shocks and Loan Portfolio Quality

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Macro-Financial Linkages in Egypt: A Panel Analysis of Economic Shocks and Loan Portfolio Quality
By:Inessa Love,Rima Turk Ariss
Published on 2013-12-30 by International Monetary Fund

This paper investigates macro-financial linkages in Egypt using two complementary methods, assessing the interaction between different macroeconomic aggregates and loan portfolio quality in a multivariate framework as well as through a panel vector autoregressive method that controls for bank-level characteristics. Using a panel of banks over 1993-2010, the authors find that a positive shock to capital inflows and growth in gross domestic product improves banks’ loan portfolio quality, and that the effect is fairly similar in magnitude using the multivariate and panel vector autoregressive frameworks. In contrast, higher lending rates may lead to adverse selection problems and hence to a drop in portfolio quality. The paper also reports that a larger market share of foreign banks in the industry improves loan quality.

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Book ID of Macro-Financial Linkages in Egypt: A Panel Analysis of Economic Shocks and Loan Portfolio Quality's Books is qB7LAgAAQBAJ, Book which was written byInessa Love,Rima Turk Arisshave ETAG "sQTPWRr0Psg"

Book which was published by International Monetary Fund since 2013-12-30 have ISBNs, ISBN 13 Code is 9781484339114 and ISBN 10 Code is 1484339118

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