Banking Information (Sectoral Distribution of Credit Facilities)

·       The concentration of the banks operating in Palestine....on directing approximately two-thirds of their facilities to Ramallah and al-Bireh Governorate—at a rate of 62% of the banks' facilities in the West Bank—is something that feeds indirectly into internal migration flows of citizens between governorates,..and the abandonment of their governorates,...seeking to establish businesses, or to occupy available jobs, in Ramallah and al-Bireh Governorate. This must be corrected fairly by the Palestine Monetary Authority (PMA) and the Palestinian National Authority, since it is clear, as we will see regarding the economic sectors targeted by banks' facilities in the West Bank...that banking facilities in the (sector Agriculture) for example, do not exceed 1% of the total facilities for the various sectors of the Palestinian economy, (noting that agriculture and fishing..had a combined gross domestic output in 2021 of approximately 977 million dollars, out of the total gross domestic output for 2021 of 15,027 million dollars at constant prices..)......but we see the (Real Estate and Construction sector) taking 19%, (Domestic and Foreign Trade) 16%, (Consumer Loans) 14%, and (Business Services and Consumer Services) 10%... ....have secured a considerable share of banks' credit targeting...!

-        We continue in this post to present the banks' credit facilities data, and some of the banking information contained in the reports and statistical tables of the Palestine Monetary Authority (PMA) up to the end of the second quarter of 2022 (30-6-2022).

-        In this post, please note that the figures shown here in the banking facilities data are in million dollars ..

-        The sectoral distribution of credit facilities in the second quarter of 2022 was ranked as follows (Table No. 23).....

·       (Public sector.)...Banking facilities to the public sector amounted to 2,135 million dollars.

-        While banking facilities to the (private sector) amounted to 8,500 million dollars, an increase over the second quarter of 2021 by 477 million dollars..., and an increase over the facilities at the end of 2021 by 220 million dollars.

-        Most of the sectors to which banking facilities in the private sector were directed were as follows:

1-    (Real Estate and Construction) amounting to 2,011 million dollars, or 19% of the total banking facilities up to the second quarter of 2022..., an increase from its value in the second quarter of 2021 by 178 million dollars.

2-    (Domestic and Foreign Trade): amounting to 1,744 million dollars (16%), an increase over the corresponding quarter of 2021 by 165 million dollars....

3-    (Consumer Loans): amounting to 1,497 million dollars (14%). An increase from its value in the second quarter of 2021 by 72 million dollars.

4-    (Business Services and Consumer Services): amounting to 1,098 million dollars (10%), a decrease from its value in the second quarter of 2021 by 9 million dollars.

5-    (Mining and Manufacturing): amounting to 601 million dollars, an increase from its value (5%) in the second quarter of 2021 by 55 million dollars.

6-    (Land Development): amounting to 393 million dollars (4%).. an increase from its value in the second quarter of 2021 by 28 million dollars.

7-    (Vehicle and Auto Financing): amounting to 391 million dollars (4%), the same value as in the second quarter of 2021, a decrease from its balance on 31-12-2021 by 24 million dollars...

8-    (Agriculture and Food Processing): amounting to 121 million dollars (1%)...(a decrease) from its value in the second quarter of 2021 by 14 million dollars ..

9-    (Tourism, Hotels and Restaurants): amounting to 91 million dollars, (a decrease) from the corresponding quarter in 2021 by 1 million dollars.

·       The concentration of the banks operating in Palestine....on directing approximately two-thirds of their facilities to Ramallah and al-Bireh Governorate—at a rate of 62% of the banks' facilities in the West Bank—is something that feeds indirectly into internal migration flows of citizens between governorates,..and the abandonment of their governorates,...seeking to establish businesses, or to occupy available jobs, in Ramallah and al-Bireh Governorate. This must be corrected fairly by the Palestine Monetary Authority (PMA) and the Palestinian National Authority, since it is clear, as we will see regarding the economic sectors targeted by banks' facilities in the West Bank...that banking facilities in the (sector Agriculture) for example, do not exceed 1% of the total facilities for the various sectors of the Palestinian economy, (noting that agriculture and fishing..had a combined gross domestic output in 2021 of approximately 977 million dollars, out of the total gross domestic output for 2021 of 15,027 million dollars at constant prices..)......but we see the (Real Estate and Construction sector) taking 19%, (Domestic and Foreign Trade) 16%, (Consumer Loans) 14%, and (Business Services and Consumer Services) 10%... ....have secured a considerable share of banks' credit targeting...!

·       As for the (annual interest rate) on deposits and loans, it was as follows:

-        In the first quarter of 2022 ( Table No. ( 28)

-        Dinar interest...on deposits: at a rate of 1.96%, while on loans it was 6.27%...annually

-        Dollar interest on deposits at a rate of ...2.12%., while on loans it was 6.56%..annually

-        Shekel interest on deposits at a rate of 2.02%, while on loans it was 6.81%...

-        As for the annual interest rate on deposits and loans in 2021, it was as follows:

-        On dinar deposits, it was at a rate of 2.09%...while on loans the rate was 6.24%

-        On dollar deposits, it was at a rate of 2.11%, while on loans it was at a rate of 5.38%

-        Shekel 2.03% 6.76%

-        On shekel deposits, it was at a rate of 2.03%, while on loans it was at a rate of 6.76%

-        An increase in the interest rate on loans in all three currencies was observed in the first quarter of 2022, compared with the rates in 2021, and a continued rise is possible in light of upward adjustments in US interest rates and other major financial centers in the world to confront waves of inflation and the accompanying price increases these days..., while interest rates on deposits in dinars fell....in the first quarter of 2022 compared with these deposit rates in 2021..which may rise again to rein in liquidity..and confront inflation as noted above..