Case Egypt
Abstract
This proposal model tested the return on earnings performance of Egyptian banks following the full enforcement of electronic banking system. The study became obligatory as a result of increased penetration of electronic banking which has redefined the banking operations in Egypt and over the whole world. Judgmental sampling method was undertaken by using data collected from four Egyptian banks. These four banks are as a sample banks in Egypt that have consistently conserved their brand names and remain quoted in the Egyptian Stock Exchange since 1997.
The return on earnings performance of these banks had been calculated in terms of returns on equity ratio (ROE) and returns on assets ratio (ROA). With the data acquired, we tested the pre- and post-takeover of e- banking performance variation between means using a standard statistical technique for independent sample at 5 percent level of significance for performance factors such as ROE and ROA.
The study uncovered that the takeover of electronic banking has positively and significantly boosted the returns on equity (ROE) of Egyptian banks. On the other hand and on the antithesis, it also uncovered that e-banking has not significantly enhanced the returns on assets (ROA) of Egyptian banks.
The findings of this model have reconnoitered new recommendations for bank end customers, bank management and stakeholders with respect to electronic banking takeover for banking operations.
Keywords: Electronic banking, the returns on assets ratio (ROA), the returns on Equity ratio (ROE), variation between sample means and Bank return on earnings performance.
Introduction
The introduction of worldwide banking pursuit in Egypt and the embrace of electronic banking by Commercial banks have been offered appreciated services to clients with a companion increase in
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