{"id":600851,"date":"2019-02-12T03:42:48","date_gmt":"2019-02-12T03:42:48","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2019\/02\/12\/moodys-maintains-positive-outlook-on-egypts-banking-system\/"},"modified":"2019-02-12T03:42:48","modified_gmt":"2019-02-12T03:42:48","slug":"moodys-maintains-positive-outlook-on-egypts-banking-system","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2019\/02\/12\/moodys-maintains-positive-outlook-on-egypts-banking-system\/","title":{"rendered":"Moody\u2019s maintains positive outlook on Egypt\u2019s banking system"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-07\"><\/a> <b>Moody\u2019s maintains positive outlook on Egypt\u2019s banking system: <\/b>Moody\u2019s Investors Service said in a <a href=\"https:\/\/ent.news\/2019\/2\/1832.pdf\">report on Monday (pdf)<\/a> that it has maintained its positive outlook on Egypt\u2019s banking system amid \u201can improving operating environment.\u201d<\/p>\n<p><b>Stable funding and liquidity in EGP, FX to remain under pressure: <\/b>The ratings agency said banks will continue to enjoy access to stable funding as well as sizeable volumes of liquid assets, especially in EGP. It pointed, however, to the decline in banks\u2019 foreign assets over the past year, saying FX funding and liquidity \u2014 although stable \u2014 will remain under pressure partially due to global monetary policy tightening. Banks\u2019 net foreign assets registered EGP 72 bn in September, down from EGP 73 bn in March. \"We expect balance sheet growth of around 15% in 2019 and for banks to maintain ample local currency funding, high liquidity, and strong and stable profitability,\u201d says Constantinos Kypreos, senior vice president at Moody's Investors Service.<\/p>\n<p><b>Bad loan levels stable, but vulnerable: <\/b>Moody\u2019s sees non-performing loan (NPL) levels remaining generally stable amid strong economic growth, but said \u201ca future turn in the economic cycle due to large of volumes of untested new loans and ongoing security risks\u201d is a concern.<\/p>\n<p><b>GDP growth expected at 5.5% in FY2019-20: <\/b>Moody\u2019s expects Egypt\u2019s real GDP growth to reach 5.5% in FY2019-20 and 5.8% in FY2020-21, citing private and public investment, higher exports and the country\u2019s recovering tourism industry. \u201cAccelerating growth in Egypt reflects increased public and private-sector investment, higher exports and a recovery in tourism,\u201d Kypreos said.<\/p>\n<p><b>Potential risks: <\/b>The firm cites high interest rates and inflation as two factors that could hamper growth. Moody\u2019s also said the EGP could suffer due to global financial tightening as well as a decline in investment inflows. Security risks could also harm the recovering tourism industry, it said.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Moody\u2019s maintains positive outlook on Egypt\u2019s banking system: Moody\u2019s Investors Service said in a report on Monday (pdf) that it has maintained its positive outlook on Egypt\u2019s banking system amid \u201can improving operating environment.\u201d Stable funding and liquidity in EGP, FX to remain under pressure: The ratings agency said banks will continue to enjoy access [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":600852,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8572],"tags":[204,72,2234,1324,2380],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-600851","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-speed-round","tag-banking","tag-enterpriseam","tag-foreign-exchange","tag-moodys","tag-speed-round","wpautop","entry"],"acf":{"mongo_id":"83bc63f4-3647-4779-a52c-48df5633c69d","is_powered_by":true,"section_story_id":"bfe9a0b2-15c8-4422-a72b-c64c48f86b50","story_type":"1","photo_url":"https:\/\/ent.news\/2019\/2\/994.jpg","photo_position":"above","related_issue":[600837],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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