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The Effect of Asset Quality on Systemic Risk: The Case of the Egyptian Banks

Atta, Atta Aid (2023) The Effect of Asset Quality on Systemic Risk: The Case of the Egyptian Banks. European Journal of Accounting, Auditing and Finance Research, 11 (11). pp. 74-95. ISSN 2053-4086(Print), 2053-4094(Online)

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Abstract

This study examined the effect of asset quality on systemic risk of Egyptian banks. The specific objectives determined the effect of asset quality on commercial loans, asset financing, vendor financing of Egyptian banks. The study adopted a descriptive research design approach where the target population included the 10 Egyptian banks for the period 2015-2020. The study used secondary data that was extracted from the websites of the respective commercial banks. The study used panel regression analytical model. The study concluded that asset quality affected commercial loans, asset financing, vendor financing and of Egyptian banks in a positive and significant way. The study recommended that the Egyptian banks should focus on reducing the level of nonperforming loans because when diversifying the loan portfolio where there is a high credit risk. The study recommended that the Egyptian banks to be sure that the collateral is protected and will not deteriorate, this costs the bank money. Lastly, the study recommended banks should develop comprehensive strategic plans detailing on how they will deal with non-performing loans in their occurrence in a systematic way.”

Item Type: Article
Subjects: H Social Sciences > H Social Sciences (General)
Depositing User: Professor Mark T. Owen
Date Deposited: 03 Dec 2023 13:39
Last Modified: 03 Dec 2023 13:39
URI: https://tudr.org/id/eprint/2411

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