The repercussions of the Corona pandemic crisis on financial safety indicators: Egypt is a case study

Abstract

The research aims to identify the impact of the Corona pandemic (Covid-19) on the strength of the Egyptian financial and banking system according to financial safety indicators. At the end of 2019, the global economy was struck by a health pandemic called the Corona pandemic. This pandemic led to the global economy paralyzing the system due to the cessation of most economic activities as a result of the measures taken by countries to mitigate the effects. Economic growth rates declined to unprecedented historical levels and public debt worsened until it reached unacceptable stages exceeding all standards, in addition to the rise in unemployment rates and poverty rates and its impact on financial and banking stability conditions. The research found a decline in the net profitability of Egyptian banks by varying percentages as a result of the precautionary policies followed to confront any repercussions of the Corona pandemic (Covid-19) and setting aside part of the profits in the form of allocations that are used in the event of an increase in customer defaults due to the crisis, in addition to the increase in demand for loans granted by banks to the corporate sector, in order to control the repercussions of the Corona pandemic (Covid-19).