The Relationship between Granting Factors and Default in The Banking Credit Facilities

Ahmad Daher, Abdullah Al-Amrat


This study aimed at testing the relationship between the granting factors that belong to the commercial bank itself and default of the credit facilities in the Jordanian commercial banks through the three stages of the granting process which are: pre granting stage, granting execution stage and post granting stage. The study includes all parties involved in the credit facilities in each stage. The parties include the customer’s branch, the credit department and the top management. To achieve the study’s objectives, a special designed questionnaire was distributed to the study population which is the Jordanian commercial banks. A total of (232) questionnaires were distributed, and 81% of them were appropriate for statistical analysis.

The results of the statistical analysis showed that there is no statistically significant relationship between both the pre stage and the granting execution stage at a side and the default in another side, meanwhile there is a statistically significant relationship between post granting stage and default resulting mainly from the effect of the customer branches. The post controlling  and following up in the post granting stage and studying some stages in depth by researchers in the future are among the important recommendations set according to the results.


Granting credit facilities, Default credit facilities, Commercial banks

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