Facts and the Geography of Palestine's Banking Sector at the End of 2018

·       Part One – Customer deposits at the end of 2018......and the first and second quarters of 2019

-        Banks and financial institutions constitute one of the most important pillars of the national economy in any country..., as the banking sector contributes primarily to the development of the national economy in terms of granting loans and banking facilities...to the various economic sectors in the country whether directed to the public sector or the private sector, which receives a large share of these banking facilities...Banks also form the main savings vehicle in society whether individuals or companies or institutions...Therefore, financial institutions, headed by banks, serve as an indicator and compass for governments to rely on when formulating their economic policies whether monetary or fiscal ..or their strategic plans.
 Below are some of the facts and information about the financial data of the banks operating in Palestine as they stand at the end of 2018...and some information and distributions of these data that define the banking geography and its boundaries in Palestine, in addition to concentrations and investment tendencies of the banking sector..toward the different sectors of the national economy.

-        Data of the banks operating in Palestine at the end of 2018, (as published in the statistics of the Palestine Monetary Authority (PMA) on its website and the publications of the Palestinian Banks Association) showed the performance results of the banking sector at the end of 2018, in addition to the preliminary results of this sector at the end of the first and second quarters of 2019..which I summarize as follows:

·       Customer deposits at the end of 2018

-        Customer deposits with the banks operating in Palestine amounted on 31-12-2018 to 12,193 billion dollars..an increase of 242 million dollars (2%) over 2017...while these deposits amounted at the end of the second quarter of 2019 to 12,591 billion US dollars.

-        Bank of Palestine ranked first in its holding of 3,735 billion US dollars of the banking sector deposits at year-end and in its market share, which reached 30.6% at the end of 2018. As for its banking facilities, it also ranked first as its net facilities granted at the end of 2018 amounted to 2,687 billion US dollars, with a market share of 32.8%. Arab Bank ranked second in deposits, where its deposits amounted to 3,103 billion dollars, with a market share of 25.5%. While the net facilities of Arab Bank amounted to 1,830 billion US dollars, with a market share of 22.3%. The National Bank ranked third in deposit holdings among banks where its deposits amounted to 1,717 billion dollars with a market share of 14.1%, while its net facilities amounted to 1,327 billion dollars, with a market share of 16.2%.!!

-        Deposits with the banks operating in Palestine at the end of 2018 were distributed between the West Bank and the Gaza Strip, as the total deposits at the end of 2018 in the West Bank amounted to 11,051 billion US dollars, and their deposits at the end of the first quarter of 2018 amounted to 10,879 billion dollars..where their deposits at the end of the first quarter of 2019 increased to 11,123 billion dollars...The West Bank deposits (the northern governorates) were distributed among its constituent governorates as follows:
 Ramallah and Al-Bireh Governorate: its deposits at the end of 2018 amounted to 4,474 billion dollars..These deposits were 4,587 billion dollars at the end of the first quarter of 2018, and were 4,348 billion dollars at the end of the first quarter of 2019....While banking facilities in this governorate at the end of 2018 amounted to 4,121 billion dollars..which were 4,028 billion dollars at the end of the first quarter of 2018, while they rose at the end of the first quarter of 2019 to reach 4,191 billion dollars...

·       Bethlehem Governorate: its deposits at the end of 2018 amounted to 952 million dollars..which were 923 million dollars at the end of the first quarter of 2018..while at the end of the first quarter of 2019 they amounted to 998 million dollars. While banking facilities in this governorate at the end of 2018 amounted to 453 million dollars...which were 462 million dollars at the end of the first quarter of 2018 and then rose at the end of the first quarter of 2019 to reach 461 million dollars...

·       Hebron Governorate: the value of deposits at the end of 2018 was 1,114 billion dollars..which were 1,066 billion dollars at the end of the first quarter of 2018, and were 1,162 billion dollars at the end of the first quarter of 2109. While banking facilities in this governorate at the end of 2018 amounted to 503 million dollars...which were 472 million dollars at the end of the first quarter of 2018, while they rose at the end of the first quarter of 2019 to reach 503 million dollars...

·       Tulkarm Governorate ..the value of deposits there at the end of 2018 amounted to 540 million dollars..which were 527 million dollars at the end of the first quarter of 2018 while they amounted to 561 million dollars at the end of the first quarter of 2019. While banking facilities in this governorate at the end of 2018 amounted to 193 million dollars...which were 181 million dollars at the end of the first quarter of 2018 while they rose at the end of the first quarter of 2019 to reach 192 million dollars...

·       Nablus Governorate: the value of deposits there at the end of 2018 amounted to 1,590 billion dollars..which were 1,487 billion dollars at the end of the first quarter of 2018 while they amounted to 1,600 billion dollars at the end of the first quarter of 2019. While banking facilities in this governorate at the end of 2018 amounted to 1,015 billion dollars...which were 905 million dollars at the end of the first quarter of 2018 while they rose at the end of the first quarter of 2019 to reach 1,040 billion dollars..
 Jenin Governorate: the value of deposits there at the end of 2018 amounted to 819 million dollars..which were 781 million dollars at the end of the first quarter of 2018 while they amounted to 831 million dollars at the end of the first quarter of 2019. While banking facilities in this governorate at the end of 2018 amounted to 367 million dollars...which were 343 million dollars at the end of the first quarter of 2018 while they rose at the end of the first quarter of 2019 to reach 375 million dollars..

-        As for Gaza Strip deposits, they amounted at the end of 2018 to 1,176 billion dollars...which were 1,123 billion dollars at the end of the first quarter of 2018, and they also amounted to 1,271 billion dollars at the end of the first quarter of 2019...Where deposits of Gaza City at the end of 2018 were 818 million dollars, which were 795 million dollars at the end of the first quarter of 2018 while they were 862 million dollars at the end of the first quarter of 2019... . While banking facilities in this governorate at the end of 2018 amounted to 641 million dollars...which were 656 million dollars at the end of the first quarter of 2018 while they rose at the end of the first quarter of 2019 to reach 625 million dollars...

·       Part Two: Net banking facilities of the banking sector in Palestine at the end of 2018

-        Net banking facilities amounted on 31-12-2018 to 8,190 billion dollars, an increase of 289 million US dollars compared to the end of 2017 and a 4% increase.., while this net of banking facilities at the end of the second quarter of 2019 amounted to 8,697 billion US dollars, of which to the private sector amounted 7,136 billion dollars, while to the public sector net banking facilities amounted to 1,561 billion dollars...where these facilities in US dollars amounted to 3,769 billion dollars, while those in shekels converted to dollars amounted to 3,409 billion dollars, and net facilities granted in Jordanian dinar amounted to the equivalent of 1,356 billion US dollars.....

- As for the distribution of net facilities at the end of 2018, by sector, the net facilities for the public sector at the end of 2018 amounted to 1,317 billion dollars, while the net facilities in the first quarter of 2018 amounted to 1,384 billion dollars, where this net of facilities granted to the public sector decreased in the first quarter of 2019 to an amount of 1,269 billion US dollars. It is worth noting that the public sector referred to here is the Palestinian National Authority, the local authorities and the institutions affiliated with the public sector. We note that the net banking facilities granted to the Palestinian National Authority amounted at the end of 2018 to 1,307 billion US dollars. In comparison with the net facilities granted to the Palestinian National Authority in the first quarter of 2018, which amounted to 1,375 billion dollars, these facilities decreased in the first quarter of 2019 to an amount of 1,256 billion dollars...

- As for net banking facilities for the private sector, they amounted at the end of 2018 to 7,115 billion US dollars. While these facilities for the private sector in the first quarter of 2018 amounted to 6,791 billion dollars, they amounted in the first quarter of 2019 to 7,301 billion dollars...
• As for the distribution of banking facilities for the private sector by economic sector, these facilities at the end of 2018

- Real estate sector: an amount of 1,606 billion dollars, where these banking facilities in the first quarter of 2018 amounted to 1,471 billion dollars, while these facilities in the first quarter of 2019 amounted to 1,595 billion dollars.

- As for the land development sector: the facilities granted to this sector at the end of 2018 amounted to 255 million US dollars, while these facilities at the end of the first quarter of 2018 amounted to 241 million dollars, while they amounted at the end of the first quarter of 2019 to 273 million dollars..
• As for the banking facilities for the mining and industry sector, they amounted at the end of 2018 to 444 million dollars. At the end of the first quarter of 2018, the facilities for this sector amounted to 407 million dollars, while at the end of the first quarter of 2019 they amounted to 457 million dollars.

- The internal and external trade sector obtained a principal share of the banks' banking facilities, as its value at the end of 2018 amounted to 1,570 billion dollars, while the facilities for this sector at the end of the first quarter of 2018 amounted to 1,446 billion dollars, whereas they increased noticeably at the end of the first quarter of 2019 to amount to 1,678 billion dollars...

- As for the agriculture and food manufacturing sector, the value of the banking facilities granted to this sector at the end of 2018 amounted to 141 million US dollars, while their value in the first quarter of 2018 amounted to 131 million dollars, and at the end of the first quarter of 2019 amounted to 141 million US dollars.

- As for the banking facilities granted to the tourism, hotels and restaurants sector at the end of 2018, their value amounted to 93 million US dollars, while their value at the end of the first quarter of 2108 amounted to 76 million dollars; their value at the end of the first quarter of 2019 amounted to 92 million dollars...

- As for facilities in the business services and consumer services sector, the banking facilities granted to it at the end of 2018 amounted to 864 million US dollars, which amounted at the end of the first quarter of 2018 to 841 million dollars, while at the end of the first quarter of 2019 they amounted to 876 million dollars.

- As for the banking facilities granted to the car and vehicle financing sector at the end of 2018, their value amounted to 303 million dollars, while at the end of the first quarter of 2018 they amounted to 294 million dollars, whereas these facilities at the end of the first quarter of 2018 amounted to 304 million dollars..
• As for the consumer loans sector, the value of the facilities granted to this sector at the end of 2018 amounted to 1,325 billion dollars, while these facilities at the end of the first quarter of 2018 amounted to 1,429 billion dollars; their value at the end of the first quarter of 2019 amounted to 1,335 billion dollars...