Data from the Central Bank of Egypt (CBE) revealed a significant shift in the structure of bank credit, as the private sector’s share of total customer loans continued to decline, hitting its lowest level in nearly 25 years by the end of February 2026. This comes amid growing bank financing for the government and shifting lending priorities in recent years.
The percentage of banking sector loans extended to the private sector dropped to 41.2% of the total loans granted to customers by the end of February 2026, according to CBE data.
This rate is considered the lowest since 2000 (according to the latest available CBE data), when loans extended to the private sector accounted for roughly 79.1% of total customer loans.
This ratio reached its peak in 2007, with the private sector securing approximately 84.6% of the total loans granted to customers.
This decline reflects a clear shift in lending trends within the banking system, driven by the state’s increasing reliance on banks to finance the budget deficit and national projects—whether through investments in treasury bills and bonds or direct lending. Additionally, high interest rates in recent years have dampened borrowing demand among many private sector companies, coinciding with banks’ expansion into retail banking and consumer finance activities.
