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Arab Journal of Administration المجلة العربية للإدارة

Abstract

The study aimed to identify the impact of the establishment of the Palestinian Deposit Insurance Corporation on the development of deposits in Islamic banks operating in Palestine; in terms of the review of the deposit insurance systems, their significance, justification for its establishment, and the discussion on their suitability for Islamic banks, as well to identify the extent of both the effectiveness of regulatory and supervisory policies of the corporation and the Islamic banks’ compliance with the law of the Palestinian Deposit Insurance Corporation. The study relied on descriptive analytical method in studying and analyzing the various aspects of the establishment of the Palestinian Deposit Insurance Corporation and its impact on the evolution of deposits in Islamic banks. The study used a questionnaire as a scientific research tool by answering the questions of the study and testing the hypotheses. The complete enumeration method was also used since the questionnaire was distributed to all members of the original sample of the study’s 54 single; the original sample consists of the employees in the departments of deposits in the Islamic banks. 47 questionnaires were recovered instituting 87% from the total number of the distributed questionnaires (54 questionnaires). The study showed a positive effect for the establishment of the Palestinian Deposit Insurance Corporation which is to reduce the risks that the Islamic banks are always exposed to increase the demand of the depositors in the Islamic banks, to increase the degree of trust among the depositors in the Islamic banks. In addition to the positive impact on the strength of the financial position of the Islamic banks; all of these positive effects are reflected in the growth of the deposits amount in the Islamic banks. The study recommended the Islamic banks of the necessity to increase their concern to raise banking awareness and to reassure depositors that their deposits are subjected to a system of insurance that takes into account the provisions of the Islamic law. The study also recommended the Palestinian Deposit Insurance Corporation of the need to increase banking awareness campaigns and especially to increase the awareness of the importance of the role of the Palestinian Deposit Insurance Corporation in protecting depositors, in order to encourage them to deposit, and to explain the law of the Palestinian Deposit Insurance Corporation to the employees in the Islamic banks.

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