Banking Statistics and Data in Palestine: Telling Indicators

- I reviewed the monthly statistics and data of the Palestinian banking sector published on the Palestine Monetary Authority's electronic page up to 31-8-2020, as well as the quarterly banking statistics up to the second quarter of 2020 (dated 30-6-2020), and I observed after analysis and comparison that the banking sector is proceeding in a balanced manner, despite the Corona pandemic, insofar as banking facilities increased on 31-8-2020 compared with their counterparts on 31-8-2019, and likewise total deposits increased on 31-8-2020 compared with their counterparts on 31-8-2019. I also noticed that the geographic distribution of banking facilities varied in the shares allocated to the governorates of these facilities: there are four governorates whose banking facilities decreased, as shown in the second-quarter 2020 statistics – 30-6-2020 – compared with the governorate of Ramallah and al-Bireh receiving the largest shares. This appears as a concentration of facilities in the Ramallah and al-Bireh governorate, which in reality concentrates the arrival and internal migration of trade and labor to Ramallah and al-Bireh. This has the effect of diminishing the importance of other areas, especially the countryside, in the distribution of facilities, which are fundamentally concentrated on the sectors of domestic and foreign trade, services, and consumer loans, sectors in which the countryside has no vital share; the countryside depends mainly on agriculture and labor. Agriculture is one of the sectors that is undesired in our banking philosophy in Palestine, relying on low returns and weak collateral for any potential borrower. Clearly these statistics answer many questions that concern stakeholders, indeed citizens, about the economic situation in Palestine, and about the condition of the Palestinian banking sector and the extent to which it has been affected by the Corona pandemic — whether through increased facilities for the government sector... or by not granting banking facilities in the broad sense to governorates considered remote from the centers of banks’ general and regional administrations in Ramallah and al-Bireh. Have banking facilities in the car-financing sector stopped, especially given that around 6 months in the comparative statistics were under emergency conditions due to the Corona pandemic? Which sectors most attract the banking sector in directing its credit to them in the engine of the Palestinian national economy? Is the banking sector proceeding at an appropriate pace commensurate with the economic conditions in Palestine? I prepared a presentation and analysis of banking data, in general, drawn from monthly and quarterly tables and statistics on the Palestine Monetary Authority's electronic page, which may answer many questions; and sometimes the reader is the analyst from his observations of the statistics with the naked critical eye!! I prepared two articles for publication on my Facebook page in two parts: the first part will be the first article concerning deposits, while the second part will be an article concerning banking facilities...

·       Banking data and statistics on deposits at banks in Palestine, as of 31-8-2020….

- Total deposits at banks as of 31-8-2020 amounted to 13,940 million dollars (thirteen billion nine hundred and forty million dollars), of which deposits without interest amounted to 6,189 million dollars, while total deposits as of 31-8-2019 amounted to 13,047 million dollars—an increase of approximately 893 million dollars... of which non-interest-bearing deposits amounted to 5,868 million dollars. As for the geographical breakdown of deposits, deposits in the West Bank on 31-8-2020 amounted to 12,571 million dollars (twelve billion five hundred seventy-one million dollars), an increase over their counterparts on 31-8-2019 of about 828 million dollars. As for the Gaza Strip, deposits on 31-8-2020 amounted to 1,369 million dollars, an increase over their counterparts on 31-8-2019 of 65 million dollars...(table no. 10)

- Deposits of the Palestinian National Authority at the banking sector as of 31-8-2020 amounted to 307 million dollars, a notable decrease from their counterpart on 31-8-2019 when the total deposits of the Palestinian National Authority were 437 million dollars—i.e., a decrease rate of (59%.).., unlike deposits of public institutions and local authorities, whose deposits increased on 31-8-2020 over their counterparts on 31-8-2019 by 19 million dollars, as they amounted to 87 million dollars... These data concern the West Bank..(table no. 11)

- As for deposits of persons residing in the West Bank as of 31-8-2020, they amounted to 8,976 million dollars, an increase over their counterparts on 31-8-2019 by an increase of 717 million dollars, while deposits of resident companies as of 31-8-2020 amounted to 2,356 million dollars, an increase over their counterparts on 31-8-2019 by 442 million dollars..!!. Overall, total deposits in the West Bank as of 31-8-2020 amounted to 12,571 million dollars, an increase over their counterparts on 31-8-2019 by 828 million dollars..(table no. 12)

- Total customer deposits in Palestine, as of 31-8-2020 amounted to 13,940 million dollars, of which 5,181 million dollars were current account deposits, an increase over their counterparts on 31-8-2019 by 230 million dollars, and 4,578 million dollars were savings accounts, an increase over their counterparts on 31-8-2019 by 376 million dollars, while term deposits amounted to 4,180 million dollars, an increase over their counterparts on 31-8-2019 by 287 million dollars...(table no. 13)... It is noticeable that the saving pace continues to increase positively despite some periods in the statistical timeframe being during the Corona pandemic... which requires spending by citizens, although spending weakens during lockdowns and staying at home.

- As for the distribution of customer deposits by area as of 30-6-2020, they amounted in the West Bank to 12,415 million dollars. While banking facilities granted in the West Bank as of 30-6-2020 amounted to 8,736 million dollars (table no. 21), distributed in the main governorates and cities as follows (the numbers as of 30-6-2020 will be compared with their counterparts as of 30-6-2019) (table no. 17)

· Deposits of Ramallah and Al-Bireh Governorate amounted to 4,913 million dollars, an increase over their counterpart on 30-6-2019 by 449 million dollars (i.e., 42% of the increase in the value of deposits as of 30-6-2020). Meanwhile, the value of banking facilities granted to this governorate on the same date (30-6-2020) amounted to 5,194 million dollars, an increase over facilities granted to the governorate on 30-6-2019 by 742 million dollars (i.e., 104%.. of the increase in facilities on 30-6-2020)!!... Ramallah and Al-Bireh Governorate gained the lion’s share in the increase of banking facilities as appeared in the second quarter of 2020 compared to the second quarter of 2019. It is noticeable that the governorate took share from others in the facilities granted to governorates that will appear later and are mostly northern governorates, noting that the ratio of facilities granted to this governorate to its total deposits as of 30-6-2020 reached 106%... !

· Deposits of Bethlehem Governorate amounted to 1,044 million dollars, an increase over their counterpart on 30-6-2019 by 46 million dollars (i.e., 4% of the total increase in deposits), while banking facilities amounted to 502 million dollars, an increase over their counterpart on 30-6-2019 by 32 million dollars (i.e., 4% of the increase in banking facilities on 30-6-2020).

· Deposits of Hebron Governorate amounted to 1,255 million dollars, an increase over their counterpart on 30-6-2019 by 102 million dollars (i.e., an increase of about 10% of the total increase in deposits as of 30-6-2020), while facilities granted to the governorate as of 30-6-2020 amounted to 575 million dollars, an increase over their counterpart on 30-6-2019 by 37 million dollars (i.e., 5% of the total increase in facilities as of 30-6-2020). It is clear that in Hebron the facilities granted to this governorate are not commensurate with the size of its deposits relative to total deposits in the West Bank, which amount to 46%—i.e., the ratio of facilities in this governorate to its deposits as of 30-6-2020....)!!

· Deposits of Tulkarm Governorate amounted to 637 million dollars, an increase over their counterpart on 30-6-2019 by 57 million dollars (i.e., 5% of the increase in total deposits as of 30-6-2020), while facilities granted to the governorate as of 30-6-2020 amounted to 207 million dollars, an increase over their counterpart on 30-6-2019 by 7 million dollars... (i.e., about 1% of the total increase in facilities as of 30-6-2020)

·       deposits of Nablus Governorate They amounted to $1,793 million, an increase over the amount on 30-6-2019 by $156 million, (i.e., 15% of the total increase in deposits on 30-6-2020). As for the facilities granted to the governorate on 30-6-2020, they amounted to $1,138 million, an increase over the amount on 30-6-2019 by $28 million (i.e., about 4% of the total increase in bank facilities on 30-6-2020), and the ratio of bank facilities granted to this governorate to its deposits reached about 63%...!

·       deposits of Qalqilya Governorate They amounted to $250 million, an increase over the amount on 30-6-2019 by $24 million. As for the facilities granted to the governorate on 30-6-2020, they amounted to $112 million, a decrease from the amount on 30-6-2019 by ($4 million).

·       deposits of Jenin Governorate They amounted to $940 million, an increase over the amount on 30-6-2019 by $76 million. As for the facilities granted on 30-6-2020, they amounted to $367 million, a decrease from the amount on 30-6-2019 by ($18 million). The ratio of facilities granted to this governorate to its deposits on 30-6-2020 is 39%!!

·       deposits of Salfit Governorate They amounted to $162 million, an increase over the amount on 30-6-2019 by $16 million. As for the facilities granted to the governorate on 30-6-2020, they amounted to $69 million, a decrease from the amount on 30-6-2019 by ($40 million)..!!!

·       deposits of Tubas Governorate They amounted to $107 million, an increase over the amount on 30-6-2019 by $9 million, while the facilities granted to the governorate on 30-6-2020 amounted to $45 million, a decrease from the amount on 30-6-2019 ($10 million). !!!

-       On 22-9-2020