The study aimed to understand challenges facing the banking sector in performing its financing role and to highlight the measures and policies that could be adopted to overcome these challenges, based on international experiences. The study sought to test the hypothesis that the Egyptian banking sector faces numerous challenges that limit its designated financing role. That the instability of economic and financial factors negatively affect the financing role of the banking sector in Egypt. A global economic recession reduces the demand for loans. Banks exposure to banking risks limits the ability of Egyptian banks to perform their designated financing role. The proper implementation of initiatives by the Central Bank of Egypt (such as financial inclusion, sustainable financing) and the adoption of new financial technologies (FinTech) significantly enhances the financing role of the Egyptian banking sector. The study used inductive reasoning based on descriptive and analytical tools for testing the hypotheses. The descriptive tool is used to present concepts, indicators and theories related to the banking sectors financing role, as well as to identify the challenges that limit the banking sector from performing its designated financing role. Statistical tools are used to diagnose the status of the financing role of the banking sector in Egypt and other countries during the period from 2010 to 2023. This article derived strategies and policies for dealing with the challenges of the banking sectors financing role, emphasizing the importance of addressing the impacts of inflation, unemployment, financing the states budget deficit and interest rates. It focuses on the strategies followed to enhance financial stability and improve banks ability to perform their financing function effectively.

The Financial Role of the Banking Sector - Banking Risks - Sustainable Finance - Financial Inclusion - Financial Technology (FinTech)