The Impact of Strategic Planning on Credit Risk Management of the Palestinian Banks رسالة ماجستير

Abstract

This thesis aims to investigate the effect of strategic planning on credit risk management (CRM) at Palestinian banks. The researcher uses the quantitative research approach through using correlation design to conduct this thesis. The researcher develops a specific purpose questionnaire distributed to a sample of (120) employees in the Palestinian banks at Ramallah and Al-Bireh governorate, Palestine (13 local and foreign banks of which three are Islamic banks). The study results demonstrate that there was a high extent of CRM in the Palestinian banks and a high level of strategic planning. There is also a positive and significant statistical effect of implementing the strategic plans in accordance with the Basel II & III standards on credit risk CRM in the Palestinian banks. It also shows that there are some factors of CRM influencing the development of a strategic planning methodology for managing credit risk, and some of these factors have a positive effect on CRM. Likewise, the findings show that some factors have a positive and statistical effect on CRM in the Palestinian banks, while others don’t have. In light of the thesis findings, the researcher recommends that there is necessity of developing and promoting good governance in the Palestinian banks to conduct more research on modern banking risk management, including operational risk management, market risk management, interest rate risk, and foreign exchange risk.