In 2003, the new banking law No. 88/2003 was promulgated. This law was meant to foster the consolidation of the sector through mergers and acquisitions, and abolished the distinction between commercial, business and specialized banks. Interested by this new development, we analyzed the Egyptian banking sector’s efficiency and productivity over the period 2004-2009 through the non-parametric technique DEA, to measure banks’ efficiency, and the Malmquist Productivity Indexes to estimate productivity changes. Finally we examined, through a GLS regression, possible correlates or determinants of efficiency, such as stability, ownership & control, size, market power, risk, and other bank characteristics. Finally we give policy recommendations to foster the consolidation and the liberalization of the sector.