Higher bank competition leads to riskier behavior in Egyptian banks
The study looked at how competition between banks, the amount of money they have to keep in reserve, and their specific characteristics affect how risky they are. They studied 27 banks in Egypt from 2012 to 2018. The results showed that more competition between banks leads to less risky behavior. Having more money in reserve also reduces risk. Larger banks and those with more diverse investments tend to take on more risk. However, the type of bank, how much they borrow, and how profitable they are don't seem to affect how risky they are.