Reasons For Troubled Loans And Its Impact On The Banks And Taxes

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Borhan Husni Hasan Omar
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Banking sector in all countries faces the problem of troubled loans , Palestinian banking sector suffers from this problem due to the current situation , credit facilities dropped by the end of June,2002 by 23.7% of that of the end of 2000, .Provisions for doubtful debts increased by 40% . This study aims at examine the reasons for troubled loans and its impact on the banks and taxes . Several hypothesis have been developed . A questionnaire was designed for data gathering. A pilot study was conducted then the questionnaire was distributed to a sample of officials of banks branches of West Bank , 38 respondents out of 46 returned the questionnaire i.e. about 90% of the sample, data were analyzed using SPSS. Descriptive statistics was used to analyze the data. It was found that both the banks and clients were responsible for troubled loans , granting loans on a personal basis bad management bad financial management were main reasons for troubled loans . More than 76% of the sample did not use Z- score for forecasting failure in credits . This was due to the lack of knowledge of this measure. It was found that credit is granted on the basis of clients character, collateral , follow up was one of the main means of collection troubled loans. It was found that there is a relationship between troubled loans and taxes . Tax department used uncollected interest as part of taxable income. This led to the increase in taxes paid by banks. Recommendations were drawn from the results of which are training of banks staff documentation follow up of credit facilities , establishment of collection departments , emphasize more internal and external control on banks , establishing a special section in the courts for banking disputes through experienced judges and attorneys to facilitate the follow up of troubled loans, as for the tax department it is recommended that unsolved interests on troubled loans in banks to be dealt with within the taxable income on a cash basis rather than on accrual basis.
تعتبر ظاهرة الديون المتعثرة من المشاكل الرئيسية التي يعاني منها القطاع المصرفي في كافة دول العالم ، لما لتلك الظاهرة من تأثيرات كبيرة على البنوك بشكل خاص ، والاقتصاد بشكل عام ، وحيث ان القطاع المصرفي الفلسطيني يعاني من مشكلة الديون المتعثرة في ظل ظروف غير طبيعية تختلف عن بقية ظروف دول العالم ، متمثلة في الظروف السياسية السائدة ، واجراءات الاحتلال المتواصلة من اغلاق وحصار وخنق الاقتصاد الفلسطيني بكافة قطاعاته ، كل ذلك زاد من ظاهرة تعثر الديون في القطاع المصرفي الفلسطيني , وتأكيداً لما سبق واستنادا الى الميزانية المجمعة للبنوك العاملة في فلسطين كما هي بتاريخ 30/6/2002 ، تبين ان التسهيلات المصرفية انخفضت عن نهاية عام 2000 مبلغ 318.93مليون دولار أي بنسبة 23.68% ، في حين زادت مخصصات الديون المشكوك في تحصيلها