Journal of the Arab American University مجلة الجامعة العربية الامريكية للبحوث

Journal of the Arab American University  مجلة الجامعة العربية الامريكية للبحوث


Banks perform many activities and functions and the most important function is the credit granted to current or prospective clients. This function will be profitable if it is managed by the credit department properly in terms of several factors .The decision of granting credit in banks is usually complicated and difficult, perhaps because the results of the credit decision only appear after a relatively long period of time. Therefore, understanding the determinants of credit risk plays a crucial role in the financial stability of the banks and decision of granting credit. The study aimed to identify the factors influencing the decision of granting credit at commercial banks in Jenin Governorate in the light of the variables of the employee’s academic qualification, years of experience, job title, specialization and training courses . To achieve the objectives of the study, a questionnaire was prepared. It consisting of (42) questions, which were divided into four sections, and distributed to a sample that consisted of (87) employees from the credit facilities department in the commercial banks in Jenin Governorate. After the data was collected from the study sample, it was analyzed using the Statistical Package for Social Sciences (SPSS). The means and standard, deviations, One-way Anova and Least Significant Difference (LSD) were calculated in order to answer the questions of the study. The study results showed that the factors included in the study tool were highly considered when making the decision of granting credit. The factors related to the client were the most influential factors in the decision of granting credit, followed by factors related to the loan, external factors and finally factors related to the bank. The study also showed that there were statistically significant differences between the responses of the sample members regarding the factors influencing the decision making of granting credit according to the variables of the academic qualification, the job title and the training courses of the employee, while there were no differences according to the variables of the years of experience and specialization. The study recommended that the credit staff in commercial banks should concentrate on the clients’ financial position, payment ability, and nature of the loan.