Excess Instability

In search of the stronger credit ratings brought by more stable markets, Lebanese banks have long been conquering new territories and Egypt is no exception. While only Bank Audi and BLOM Bank have their own franchises in the recently revolutionized country, many of Lebanon’s other banks have correspondent relationships with existing banks in Egypt. Where others have not, Audi and BLOM have dug in deep and the effects on their operations there from the recent upheaval and its resulting power shift and are worth more than a passing glance. Of the two Lebanese banks operating in Egypt, Bank Audi has the largest presence by a long shot, though both made relatively similar entrances into the market. Audi, the biggest bank in Lebanon by assets and market capitalization, has 30 branches in Egypt, which is set to become the bank’s number two location after Lebanon. Audi entered Egypt in 2006, outbidding