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2013
Research on Egyptian Banking
sector

Hatem ELLEISSY
IMC – Integrated Marketing Communication
1/31/2013

Contents
Banking sector in Egypt ....................................................................................................... 3 Banking Structure Development ..................................................................................... 4 Poor Performance Triggered Reforms ............................................................................ 5 Public Banks Being the Primary Concern ........................................................................ 5 Notable Reforms to the Whole System .......................................................................... 6 Consolidation Dominated the Sector .............................................................................. 6 Mergers Banks ................................................................................................................. 7 Foreigners Chasing Opportunities in the Sector ............................................................. 7 Two Major Acquisition Bids in 2007 ................................................................................ 8 One of the Big Four Privatized ........................................................................................ 8 SWOT Analysis..................................................................................................................... 9 Porter 5 forces analysis ..................................................................................................... 10 Segmentation, Targeting and positioning......................................................................... 12 Comparaison between National Bank of Egypt and Alex Bank ........................................ 14 National Bank of Egypt .................................................................................................. 14 The Bank of Alexandria ................................................................................................. 15 Dictionary .......................................................................................................................... 16 References ........................................................................................................................ 45

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EGYPTIAN BANKING SECTOR

Banking sector in Egypt
The banking system comprises 57 state owned commercial banks. This includes 28 commercial banks, four of which are state-owned, 26 investment banks (11 joint venture banks and 15 branches of foreign banks), and three specialized banks. Although private and joint venture banks are growing, many remain relatively small with few branch networks.

Egypt’s banking system has undergone major reforms since the 1990s and today we are faced with a liberalized and modernized system which is supervised and regulated according to internationally accepted standards.

The Central Bank of Egypt (CBE) has improved the Egyptian banking systems in the following ways:
1. Introduction of laws giving more independence to the CBE, and an electronic signature law
2. Regulation of connected and related party lending
3. Management reforms of the four public sector banks, making clear the responsibilities of managers and boards of directors
4. Development of an automated credit risk information system (CRIS), from which participants would be able to gain online access to clients' credit profiles. However, Egyptian banks are still behind other Western banks in supplying a good range of mortgage products to their clients. Although this is soon to change, the mortgage market is underdeveloped in Egypt and as yet foreigners cannot yet obtain a mortgage for a property in Egypt. In the near future, a new mortgage law will enable purchasers to take out property loans. This will open up the market considerably and create a storm of development and real estate activity in the near future.

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EGYPTIAN BANKING SECTOR...
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