The Clap Fitch Ratings said that Egyptian banks will be able to withstand the EGP’s decline due to high reserve ratios.
What The Fitch report said that the major private sector banks will cope better than state-owned banks in withstanding the devaluation of the currency.
So What Fitch expects that the National Bank of Egypt and Banque Misr’s net interest margin will be affected by the 25% certificate issuance, while private sector banks are expected to witness more cash flows from abroad.
Claps Class The net interest margin is the difference between the interest that the bank receives from banks and the interest that the bank pays on deposits.
Now What The report indicated that the EGP could be under pressure during 2023 due to the accumulation of imports and the large external financing needs, which will lead to an attempt to attract hard currency at the expense of devaluation.