The main objective of the study is to examine the relationship between banking sector development and economic growth in Egypt. The study is conducted by using an annual time-series data over the period 1974-2015. To examine the relationship between banking sector development and economic growth, a multiple regression analysis and a Granger Causality test are employed. The results of study reveal that the banking sector development has a positive and statistically significant impact on economic growth and leads economic growth in Egypt.