Does financial inclusion improve the financial performance of commercial banks in Egypt ? : pooled ols approach

Abstract EN

Financial inclusion is gaining acceptance in Egypt as a prominent policy toward the economic reform during the last few years.

However, there is relative dearth of em1 pirical studies examining the impact of financial inclusion on the performance of banks in Egypt.

This paper fills this gap.

Using Pooled Ordinary Least Square (OLS) of six commercial banks listed in the Egyptian stock market over the period from 2013 to 2018, this study empirically investigate the impact of financial inclusion on the performance of Egyptian banks measured in terms of Return on Assets (ROA) and Return on Equity (ROE).

Financial inclusion is measured subject to two main dimensions- the access to financial services and utilization of bank account and its related financial services.

Due to the difficulty of getting data, the usage dimension is taken for the side of individuals only and ignores SMEs such as credit card; loan; deposit for SMEs.

Results showed that financial inclusion positively contribute to banks' ROA and ROE.