The Role of Client's Creditworthiness Criteria in the Credit Decision-Making Process: A Comparative Study between Syrian Commercial Public and Private Banks


Abstract in English

This study aims at identifying the differences between Syrian commercial public and private banks regarding the role of client's creditworthiness criteria and their relative importance in the credit decision-making process, in addition to recognizing the differences in empowerment between bank's branches in credit decision. To achieve the objectives of the study, a questionnaire is designed to cover the creditworthiness fields according to 5Cs model, which includes (Character- Capability – Capital – Collateral- and Condition). A Descriptive approach is used where hypotheses are tested by Independent Sample T-test from SPSS. The results showed that all 5Cs criteria are important in the credit decision- making process, but their importance differs among private and public commercial banks except for the collateral, where private banks place more weight to this criterion. Both types of banks have a high degree of centralization regarding credit decision, and restrict the power of their branches in dealing with lending files.

References used

Special Economic Zone Authority-Jordan. European Journal Of Business And Management, Vol. 5,No. 1, 2013, p133
ABBADI, S. M; ABU KARSH, S .M . Methods Of Evaluating Credit Risk Used By Commercial Banks In Palestine. International Research journal of Finance And Economics, ISSN 1450-2887 Issue. 111 July, 2013.p151
COOPER, D. R; SCHINDLER, S. PAMELA. Business Research Method, 11th Edition, USA, 2011

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