(Reuters) - The Egyptian banking sector has high potential for excelling and withstanding the current global financial turmoil, said HC Brokerage, which reinitiated coverage of National Societe Generale Bank and Commercial International Bank (CIB). "With low integration within the global economy, the sector has no exposure to toxic assets," HC said in a note to clients. A conservative regulatory environment, recent regulations and consolidation waves that enhanced big players' asset positions, and abundant liquidity have saved the industry from the current funding dry-out, the brokerage said. HC noted that low utilization rates and a considerably under-penetrated retail market in Egypt provided huge potential for lending growth in the sector. The brokerage, however, said a slowdown in lending this year was inevitable for Egyptian banks due to lack of opportunities on the corporate side and the banks' conservative approach towards retail and small- and medium-sized enterprises segment. HC noted that the SME and retail segments were most vulnerable to deterioration in asset quality. The brokerage re-initiated NSGB with a "buy" rating and a price target of 32.23 Egyptian pounds, while it resumed CIB with a "hold" rating and a target of 54.02 Egyptian pounds. | 
