Banks have to play many roles in the upcoming period so as to contribute to boosting economic growth, said Abdel Megid Mohy El-Din, chairman of the Egyptian Arab Land Bank (EALB).
Banks shall adopt more advanced methods and provide modern services so as to reach international levels, he said. 14% of Egyptians do not have bank accounts, while the rate reaches 70% in most countries.
During “People and Banks” Conference, he affirmed that banks shall reduce credit concentration risk and diversify their investments with focusing on small and medium-sized enterprises that play a large role in boosting economy.
Banks have largely contributed to supporting the national economy, especially after 2011’s revolution as they provided customers with their needs and maintained customers’ deposits in that hard time. The total value of liquidity held by the banking sector surged 2.9% (EGP 29 billion) from May 2011 to the end of 2012 to reach EGP 1.38 trillion.
The importance of the banking system arouses from its mediatory role between depositors and investors in establishing projects and supplying the country with basic goods. Banks’ finance sector largely contributes to the country’s GDP. As finances fell from 8.7% to 2.3%, the country’s GDP dropped from 4.9% in 1995 and 1996 to 3.1% in 2003.
