Credit Portfolio Dynamics and Risk Exposure: A Panel Data Analysis of Lending Institutions in Palestine
Date
2025-07-07
Authors
Ateeq Ibrahim
Bayoud Mohammad
Journal Title
Journal ISSN
Volume Title
Publisher
The International Journal of Business Management and Technology
Abstract
This study examines the determinants of credit risk within Palestinian lending institutions using panel data
from 2022 to 2024. Drawing on data from Qatan, Qudas, and Rief, the analysis combines fixed effects regression and
structural equation modeling (SmartPLS) to assess the impact of inactive loans, credit scoring systems, macroeconomic
indicators, and governance mechanisms on Portfolio at Risk (PAR). Regression results reveal that higher inactive loan
ratios significantly increase PAR, while institutions adopting credit scoring report a notable reduction. SEM findings
validate that internal governance explains 63% of the variance in credit risk. These results emphasize the need for
enhanced institutional practices and regulatory infrastructure to sustain financial stability in fragile economic contexts
Description
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Citation
Ateeq, I. M., & Bayoud, M. A. (2025). Credit portfolio dynamics and risk exposure: A panel data analysis of lending institutions in Palestine. The International Journal of Business Management and Technology, 9(7), 48–60.