Bridging credit risk using comprehensive credit analysis: evidence from Palestinian banking sector

This paper investigates the adoption of the credit analysis techniques that bridges credit risk and provides live evidence on the reality of the Palestinian banks. However, in order to achieve its aims, the study adopted the quantitative approach. It also achieved the required data by designing a questionnaire that targets respondents working at seven banks that work in the Palestinian territories in the West Bank. Out of (248) distributed questionnaire forms, we received (189) completed forms. The findings show that the Palestinian banks follow all the instruments of credit risk analysis and adhere to them to reduce credit risk. This step contributes in creating a strong credit Palestinian banking sector. One of the reasons for this is that Palestine Monetary Authority imposed strict rules and regulations, which the banks follow and adhere to. These results are considered to be positive and of great importance in providing the Palestinian banks with an opportunity to grant credit expansion; and to participate in financing investment development and long term infrastructure projects, as a substitute to financing consumer retail products and short terms loans.