The Impact of Banking Sector on Economic Growth in the Palestinian Territories (2009-2019) رسالة ماجستير

Abstract

The study examines the impact of banking sector on economic growth in Palestinian territories (2009-2019) ,The development of the banking sector and its impact on economic growth has been studied through a set of indicators (total assets, banking sector deposits, credit facilities, profitability, percentage of credit facilities for deposits, number of banking sector branches, number of bank accounts), and their correlation with the indicators of economic growth represented by the rate of growth of the rate of growth of GDP. Measuring the role of the banking sector in economic growth is one of the most important research that must be carried out in order to develop strategic plans for the state’s economy, as the financing aspect of the economy is one of the most important factors for its success and growth. A descriptive and analytical approach was adopted through the statistical data obtained from the Palestinian Monetary Authority, the Palestinian Central Bureau of Statistics (PCBS), the Palestinian Banks Association), as well as personal interviews conducted with specialists in the field of credit at banks operating in Palestine to identify the risks faced by the banking sector and the obstacles faced by the private sector in order to obtain the necessary funding. The results of the analysis show that there is a positive impact of the banking sector on economic growth during the study period. This is through the success of the banking sector in mobilizing the savings necessary for the lending process, which appears through the large increase in deposits, as well as the increase in the volume of credit facilities provided to the private sector, which means that the banking sector contributes to financing economic activity, as well as through the increase in the profitability of the banking sector, and the development in Increasing the assets of the banking sector, and the spread of the banking sector through the increase in the number of branches and bank accounts, has an impact on economic growth represented in the rate of growth of GDP. v The study recommends that the Monetary Authority focuses on developing the financial position of banks through encouraging integration, motivating the banking sector to develop its tools in order to mobilize the savings of the public, focusing on granting credit facilities to the productive sectors. providing guarantees to the banking sector to guarantee the credit facilities provided to the productive sectors, and finally the reducing interest rates on the credit facilities provided to the productive sectors.