Merger and acquisition of banks could be for good or ill, depending on whether or not they promote competition and improve performance. This paper assesses the Egyptian experience over the past two decades and makes policy recommendations in light of international experience. It discusses the rationale for bank mergers and acquisitions and reviews their impact broadly. The paper also assesses the room for consolidation of the banking sector in Egypt through conducting an analysis of the structure and performance of Egyptian banks. The paper concludes that the banking sector in Egypt could benefit from the merger of small banks and a better regulatory framework.
Author(s): Nabil Hashad