01953cas a2200253 a 4500 AALejournalIMF014114 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484338315 1018-5941 BD-DhAAL BD-DhAAL Love, Inessa. Macro-Financial Linkages in Egypt : A Panel Analysis of Economic Shocks and Loan Portfolio Quality / Inessa Love, Rima Turk-Ariss. Washington, D.C. : International Monetary Fund, 2013. 1 online resource (40 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper investigates macro-financial linkages in Egypt using two complementary methods, assessing the interaction between different macroeconomic aggregates and loan portfolio quality in a multivariate framework as well as through a panel vector autoregressive method that controls for bank-level characteristics. Using a panel of banks over 1993-2010, the authors find that a positive shock to capital inflows and growth in gross domestic product improves banks' loan portfolio quality, and that the effect is fairly similar in magnitude using the multivariate and panel vector autoregressive frameworks. In contrast, higher lending rates may lead to adverse selection problems and hence to a drop in portfolio quality. The paper also reports that a larger market share of foreign banks in the industry improves loan quality. Mode of access: Internet Turk-Ariss, Rima. IMF Working Papers; Working Paper ; No. 2013/271 Full text available on IMF http://elibrary.imf.org/view/journals/001/2013/271/001.2013.issue-271-en.xml IMF e-Library