The rating agency Moody’s through its investor service has revised up Wednesday, October 10, the prospect of the Egyptian banking system from “stable” to “positive”.
The agency attributed this improvement to rising economic growth, credit growth, bank profitability and domestic capital production in the North African country.
The report states that “the economic outlook has also been underpinned by the accelerating economy and strong demand for loans in Egypt”. According to the same source, one of the other key drivers of this positive outlook of the Egyptian banking system is the improvement of the operational environment following the implementation of structural reforms, according to the report.
The paper also states that Egypt’s real gross domestic product (GDP) growth will reach 5.5 percent in 2019, compared to 4.2 percent in 2017.
According to the vice-president of the rating agency, Melina Skouridou, “an increase in investment in the domestic private sector, major infrastructure projects and higher exports will boost economic growth and demand for credit” .
In conclusion, “the funds and liquidity profiles of Egyptian banks will become strong again as the two largest government banks, the National Bank of Egypt and Bank Misr, have significantly increased their market financing”.
