Banking sector risk management and regulations : A comparative study of European vs. Egyptian banking sector / Boumeddienne Mohamed Ahmed Abousalem ; Supervised Fakhry Elfeky

Thesis (Ph.D.) - Cairo University - Faculty of Economics and Political Science - Department of Economics

The study aims to assess the role of risk management and banking regulations and their ability to prevent future financial crises and their impact on the performance of the banking sector, Furthermore, study focused on Basel I, II and III conventions with comparative analysis and criticism for each agreement of them. The study also includes a comparison between the Egyptian and French economies to determine their degree of vulnerability to the global financial crisis as well as the performance of the banking sector during the crisis in both countries and review the fiscal and monetary policies and measures used by governments to correct and mitigate the effects of the crisis. Where risk management agreements (Basel I and II) and existing regulations were not sufficient to prevent the global financial crisis. The restructuring program has helped the Egyptian banking sector to reduce the impact of the financial crisis. Egypt has been able to provide an effective model for dealing with the financial crisis and address its dependencies. While France is more affected by its greater openness to the global financial market. However, France is one of the least affected European countries of the financial crisis because of the diversity of its economy and the lack of a large volume of toxic guarantees. Finally, the global financial crisis provided a clear example of the inability of Basel II to deal with the emergence of new types of risks and to avoid the consequences of different methods of risk assessment within the banking sector. Moreover, these failures prompted the Basel Committee to issue a new Basel III agreement after the global financial crisis to adjust the regulations to include some of the risks that Basel II failed to deal with and to develop new additional regulations that would help to prevent any future crises. The study concluded that Basel III does not guarantee that future financial crises will not occur due to the continuous emergence of new types of risks due to the technological development and continuous development of banking services

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