Performance and Credit Rating in Banking: A Comparative Study for Egypt and Lebanon

We investigate the performance and risk in two prominent countries in the MENA region, Egypt and Lebanon, where banks operate under market-oriented economic regimes. The study covers the 1990’s, a period that witnessed banking sector reforms towards a more efficient financial system. Noting the differences in the structure of the banking system and the monetary changes in Egypt and Lebanon, we investigate the impact of liquidity, credit, and capital on bank profitability in each country’s banking sector. Based on our findings, we draw conclusions on the strength of risk management practices and enforcement of banking regulations.