Criteria Governing Extension of Direct Credit Facilities by Palestinian Islamic Banks

Abstract

The aim of this study was to identify criteria regarding the decision of extending direct credit facilities in the Palestinian Islamic banks. The research instrument used to collect data was a questionnaire distributed among 20 credit line employees in banks. However, 18 questionnaires were collected. Data was processed and analyzed using One Way ANOVA Post Hoc, Sheffe test and Linear Regression Analysis R2. The study concluded that Palestinian Islamic banks used a variety of criteria, when they decided to give such facilities with respect to its importance. The study concluded with a number of recommendations, which can significantly contribute to the determination of criteria pertinent to the offering of direct credit facilities so that they could be adopted by the Islamic banks operating in Palestine.