Funding Formulas in Palestinian Islamic Banks and Their Role in Financing and Investment

Abstract

The purpose of this study is identifying the financing and investment role of the Palestinian Islamic banks financing formulas, by evaluating and the investment role of the Palestinian Islamic bank. The study has employed standers included the area of investing money in these banks, the relative importance of the investment methods, the size of assets, the size of financing and investment, the size of investment income, and the relative importance for investment deposits.
The study has found that the Palestinian Islamic banks relay on Murabahah. In addition, the study shows that there is a positive statistical significance effect of Murabahah financing on the volume of financing and investment in the Palestinian Islamic bank, and there is no statistically significance effect of Modaraba, Musharakah, Istisna, Ijarah and AlqardAlhasan financing on the volume of financing and investment in the Palestinian Islamic bank. The research recommended the Palestinian Monetary Authority, as the body that control and regulates the amount of credit granted by banks, to intervene and oblige Islamic banks to diversify their investments and the financing tools applied in them. Creating a kind of harmony and balance in providing financing between the various economic sectors in line with the society’s plans for economic development; Using investment tools that fit the needs and nature of those sectors.