The Role of Strategic Planning in Shifting the Priority of Palestinian Commercial Banks towards Financing the Productive Sectors رسالة ماجستير

Abstract

This study aimed to determine the extent to which Palestinian commercial banks comply to the directives of regulatory authorities regarding compliance with the requirements of the national strategy for financial inclusion, including productive projects in Palestine, and the study sample was selected from high-ranking officers in Palestinian commercial banks (Department Manager, Supervisor of Department, Chief of Division and Head of Unit), where (60) questionnaires were distributed, of which (50) questionnaires were adopted for the purposes of analysis and study. The study came out with a number of results, such as including: first, limited bank credit directed to productive sectors and activities, as the productive sector in Palestine is considered the least fortunate in this aspect, and this is due to the policies of banks operating in Palestine to direct credit towards other sectors, especially the consumption sector, and thus they adhere to the national strategy for financial inclusion and the instructions of the Monetary Authority, but with the narrowest limits Because the banks are concerned with profitability regardless of the type of facilities and to avoid the risks associated with the facilities for the purpose of production, second, the Monetary Authority’s instructions are insufficient and not explicit in directing banks to lend productive projects, as the productive projects and activities did not benefit from many of the directions and tools of the Monetary Authority applied to stimulate and direct the banking sector towards financing economic activities and production and development projects, third, the results of the statistical analysis showed that there is a relationship between the commitment of Palestinian commercial banks to the directives of the regulatory authorities and the requirements of the national strategy for financial inclusion, including Productive sectors, there is another relationship, the relationship between strategic planning at the level of the Palestine Monetary Authority and Palestinian commercial banks to shift their priorities towards financing the productive sectors in Palestine.