The effect of applying financial inclusion policies on the financial stability of commercial banks traded on the Egyptian Stock Exchange

Osman, Yasmen Magdy Ragab; Saleh, Mohamed Ahmed Mohamed

doi:10.21608/aljalexu.2021.163023

The effect of applying financial inclusion policies on the financial stability of commercial banks traded on the Egyptian Stock Exchange

Document Type : Original Article

Authors

¹ Accounting department Feculty of Management - Modern University for Technology and Information

² Accounting department Faculty of Management - Modern University forTechnology and Information

10.21608/aljalexu.2021.163023

Abstract

This paper aimed to examine the effect of financial inclusion on the financial stability of commercial banks listed on the Egyptian Stock Exchange, as the study examined the effect of expanding individuals' financing - as one of the financial inclusion policies - represented in mortgage finance, personal finance, and credit cards, on the financial stability that was measured by the ratio of non-performing debts (NPLs) and financial leverage (total liabilities / total assets). An empirical study was conducted between the first quarter of 2017 - the first quarter of 2018 with five commercial banks listed on the Egyptian Stock Exchange.
The result reports a significant relationship between financial inclusion and financial stability in the commercial banks listed on the Egyptian Stock Exchange.

Keywords