Productivity Change of the Egyptian Banking Sector: A Two Stage Non-Parametric Approach

This study aims to evaluate of the productivity change of the Egyptian Banking sector by using a data set which cover 14 banks operating in the Egyptian market from 1997 to 2013. We use a non-parametric approach Data Envelopment Analysis based analysis to investigate the productivity change in the Egyptian banking sector. Inputoriented Malmquist indices of productivity change are estimated to measure total factor productivity (TFP) change. The TFP changes are decomposed into the product of technological change and technical efficiency change (catch-up). In the second stage, potential determinants of productivity change are studied using a regression model. We find that Egyptian banking sector experienced a decline in TFP growth at the rate of 2.55% in the whole sample period 1997-03. The estimated regression model identifies some variables which significantly influence the productivity of banks in Egypt. The banks with higher loans to deposit ratio and higher returns on equity have higher productivity growth reflecting on their strong strategic and managerial skills. The size of bank seems to be associated with an increase in productivity. The maturity of a bank (measured by age) is associated with higher productivity. The NIM, NIETA and the financial crisis variables do not seem to be affecting the productivity of the Egyptian banks

Bank Efficiency and Oil Price Volatility: A View from the GCC Countries

The study investigates the banks' efficiency in the Gulf Cooperation Council (GCC) countries' members (GCC). The efficiency of the banking sector is a cornerstone in the financial development of a country. It has also become a prominent label in both economic and financial lexicons due to the lucid importance of the financial intermediation function it provides. The banking industry is considered the backbone of the financial system in oil exporting countries of the GCC region. In general, the advancement and stability of the banking sector are inextricably related to the total economic output as measured by the GDP and to the stability of the financial system in particular. This study aims to evaluate how efficient banking is in the six countries of the GCC bloc, and to assess the effect of the oil price shock in 2014 on the bank’s efficiency in these countries. This study employs the 2-stage Data Envelopment Analysis (DEA) methodology for this aim. This model assigns efficiency scores for GCC banks over a period of time from 2008 to 2016 in the first stage. The second stage of the model regresses the aforementioned efficiency scores against a variety of financial and macroeconomic variables to depict the main determinants of bank efficiency and to assess the banking sector's resilience to global shocks as well as to macroeconomic conditions. The empirical outcomes of this study indicate that the global financial crisis (GFC) in 2008 and the oil price shock in 2014 had a significant negative impact on the efficiency scores of the GCC banks. The findings also show that domestic macroeconomic indicators have a greater impact on bank efficiency than institutional or bank-specific variables.JEL Classifications: E6, E44, Q4, G21 Doi: 10.28991/ESJ-2022-06-03-07 Full Text: PD

Financial Development and Economic Growth Impact on the Environmental Degradation in Jordan

Conflicting results exist in the literature on the role of financial development and economic growth on environmental degradation. The study's focus is to investigate the influence of economic growth and financial development on environmental degradation. The study examines the impact of financial development and economic growth on environmental degradation in Jordan. The ordinary least square model results depict the significant positive impact of financial development on environmental degradation in fossil energy consumption, urbanization, and trade openness as a control variable. Results base the data from 1976 to 2018 for the economy of Jordan. Some control variables also have an insignificant positive impact on carbon emission, a proxy of environmental degradation. This study recommends Jordan's policymakers push the banking and non-banking financial institutions to provide loaning to facilitate the green and environmentally friendly projects, which causes decreased carbon dioxide emissions. Keywords: Energy; Environment; Degradation; Urbanization; Trade.JEL Classifications: Q43, Q50, O44, O16, F62DOI: https://doi.org/10.32479/ijeep.11161</p

The Power of IT Governance When Applied on Key Devisions in Financial Institutions (IT- IS - Risk - Audit)

This dissertation designed in order to illuminate the absolute theory related to the IT governance concept, encompassing all of its aspects, according to the latest international standards, policies, and procedures adopted recently by most of the financial sectors in the local Jordanian and international markets. Additionally, it sheds light on the importance of cloud computing methodology, covering its general growth and expansion directed to simplify the execution practices and management methods related to Information Technology environment. Moreover, this dissertation is clarifying one of the essential concepts of (IT Operational Risk), that is considered as a crucial role in any risk division at any organization by concentrating only on three main event types based on Basel II international business standard clarifying its impact on the daily operational practices and role of work in any institution. After all, the most recent important framework related to IT governance (COBIT 5) was included, where i exposed the general effect of this framework on the entire financial sector in the region. Such a huge framework is used to maximize the work controls and maintain simplicity of the daily work processes for all of the related Departments especially the IT division in any institution according to the international standards and regulations 7 stated by the authorities such as CBJ (Central Bank of Jordan), specifically in our case.N

Separation Anxiety among Kindergarten Children and its Association with Parental Socialization

The present study aimed at investigating the association between separation anxiety and parental socialization styles among a sample of kindergarten children in Amman city, Jordan. The study adopted the descriptive cross-sectional design. A sample of 300 kindergarten children were enrolled in this study. The researcher used a modified version of the separation anxiety scale in addition to the parental socialization styles scale. Data were analyzed using the Statistical Package of Social Sciences (SPSS) (v. 27, IBM Corp.). The results of the study showed that 8% (n=24) of the enrolled participants had a high level of separation anxiety, normality parenting style was adopted by 38.7% (n=116). The results showed that there was significant statistical association between separation anxiety and cruelty parenting style (r=0.465, p=0.003), overprotection parenting style (r=0.301, p=0.000), negligence parenting style (p=0.641, p=0.04), and normality (r=0.09, p=0.000). The results showed that separation anxiety is significantly associated with parental socialization styles in general (r=0.326, p=0.007)

Does Bank Efficiency Matter? A Case of Egypt

This paper offers to measure the efficiency of the Egyptian banks and its determining factors. Using data envelopment analysis in the first stage to find the efficiency level for banks, by comparing the efficiency of large, medium and small banks and the efficiency of foreign and domestic banks through a balanced panel which cover 14 banks operating in Egypt from 1997 to 2013. A detailed analysis per banking group reveals that medium banks are the most efficient ones, followed by foreign banks. In the second stage, potential determinants of technical efficiency are studied using a regression model using method developed by Papke and Wooldridge (1996). The variables LTA, LTD, and NIM are all statistically significant with positive affected on the efficiency level for the Egyptian banks, however, number of branches and NIETA all statistically significant with negatively affected on the efficiency level for the Egyptian banks. Keywords: Egyptian banks; Technical efficiency; pure technical efficiency; Scale Efficiency; Data envelopment analysis JEL Classifications: D22, D24, D61, G2

The Impact of Ukrainian Crisis on the Connectedness of Stock Index in Asian Economies

The main aim of this study is to measure the dynamic connectedness and spillover effects among emerging stock markets in Asia and the developed stock markets of the US and Europe in the ongoing Ukrainian crisis. The paper also aims to provide a comparative analysis of return and volatility spillovers during the global financial crisis in 2008, the COVID-19 pandemic, and the Ukrainian crisis. This paper utilizes the multiple structural beak test of Bai & Perron (2003) and also depicts the risk and return transmissions among these markets using the Diebold & Yilmaz (2012) method. The main outcomes of this study indicate that the stock markets in Asia are less affected by the political crisis in Ukraine as compared to the previous effects during the GFC and COVID-19 periods. The results also show that sensitivity of Asian financial markets to global shocks has been weakened in the wake of the Ukrainian crisis in favour of increased resilience of Asian stock indices to external shocks. These results carry an important implication for international and local investors as well as for policy makers in Asia, where investors have greater potentials for portfolio diversify and risk reduction across Asian markets. Doi: 10.28991/ESJ-2023-07-02-04 Full Text: PD

Cost Efficiency of the Egyptian Banking Sector: A Panel Data Analysis

Based on a two stage method this paper investigates the determinants of the cost efficiency of Egyptian banking sector. Employing Data Envelopment Analysis (DEA). we compare the cost efficiency of large, medium and small banks and the cost efficiency of foreign and domestic banks using a balanced panel which cover 14 banks operating in Egypt from 1997 to 2013. In the first stage, cost efficiency scores are computed using an input-oriented data envelopment analysis (DEA). At the second stage, cost efficiency scores are regressed on a set of potential explanatory variables in a logit model.  While the cost efficiency scores show large improvements in the early and third phases of financial deregulation. Over the entire sample period, cost efficiency has declined at the rate of 0.963% per annum. Our finding indicates that age, loan to net interest margin, return on equity and good management practises positively affects banks cost efficiency and number of bank branches negatively affects bank cost efficiency. Keywords: Cost Efficiency, Two-stage Data Envelopment Analysis, Egyptian Banks. JEL Classifications: D22, D24, D61, G2

The impact of BRICS formation on portfolio diversification : empirical evidence from pre- and post-formation eras

This paper aims at contributing to the international portfolio investment decisions among the emerging BRICS countries where individual and institutional investors seek diversification benefits and to help in advocating policy changes and implementation as a response to the changing dynamics in these countries pre- and post-BRICS formation. Therefore, the context of this paper is aimed towards examining the short term causalities and long term integration among the BRICS stock market pre- and post-BRICS formation. The research applies the Augmented Dicker-Fuller (ADF) and Philips-Perron tests (PP) tests to analyze stationarity among the selected variables. The pre- and post-BRICS formation long-term linear relationship is investigated using Johansen and Juselius cointegration test while the Granger Causality is applied to assess the direction of the causality between the stock market indices. The study also extends the investigation by employing the impulse response function and variance decomposition to evaluate the reaction of each of the BRICS market to a shock from other BRICS stock markets. Weekly stock market indices of BRICS countries were used covering the period from January 2003 to December 2018. One key finding is that the degree of financial integration among the BRICS stock markets has moderately strengthened in the post-BRICS formation period compared to the pre-BRICS formation period. Another significant finding is that the Chinese stock market are mostly independent from other BRICS markets in the two aforementioned sub-periods, implying diversification benefits for the international investors both in the short and the long run. Further, the results also reveal a unidirectional causal relationship from the Russian stock market to its BRICS counterparts in both periods. Finally, the overall results show an increased responsiveness of stock markets in BRICS countries to shocks in each other after the formation of the bloc as compared to pre- formation period

An examination of the banking efficiency of the BRICS countries : a perspective derived from the oil price volatility

This study examines the influence of Oil Price Volatility on Banks efficiency within the BRICS countries (Brazil, Russia, India, China, and South Africa) noting the importance of the banking sector efficiency as a tool to ensure financial stability in the region. Being able to measure efficiency levels in banks determines how successful a bank is in managing its operations and achieving its goals. A sample data of 112 banks was selected using the Bank Scope database over the time interval 2003 to 2018 to inspect banking sector relative efficiency following a non-parametric methodology known as Data Envelopment Analysis (DEA). The paper applies a two-stage model to process the empirical results consisting in using the Data Envelopment Analysis (DEA) to identify the scores of banks efficiency at a first stage (Stage 1) and determining how volatility in Oil price has impact on these scores of efficiencies on a second stage (Stage 2). Findings of the study indicate that the Chinese banking system shows the highest efficiency (90%), followed by the South Africa (87%), followed by the Brazilian and Indian banking system with efficiency level of (77%), the Russian bank industry revealed the lowest efficient banking system with level of efficiency (50%)