Document Details

Document Type : Thesis 
Document Title :
"THE ROLE OF FINANCIAL STATEMENT ANALYSIS IN CREDIT LOAN DECISIONS AND ITS RELATION WITH CREDIT RISK: AN EMPIRICAL STUDY ON SAUDI BANKS"
"دور تحليل القوائم المالية في قرارات منح الائتمان وعلاقتها بالمخاطر الائتمانية: دراسة تطبيقية على البنوك السعودية"
 
Subject : Faculty of Economics and Administration 
Document Language : Arabic 
Abstract : This research aims to gain insights into the role of financial statement analysis on credit-granting decisions by exploring the extent to which Saudi commercial banks rely on financial statement analyses when taking credit-granting decisions. It also aims to explore the obstacles that restrict the use of financial statement analyses as well as the relationships between the use of financial statement analysis during credit-granting decisions, the loan loss provision, bank size, and eight attributes of bank loan officers.To achieve this goal, an empirical study has been conducted on a sample of (163) employees from the credit departments of the Saudi Commercial banks. A survey has been created to collect the study data. Data was from financial statements of banks under study. To process the data and test the study hypotheses, a number of statistical methods were employed including descriptive methods. Significant findings are:1)Saudi commercial banks employ customers’ financial statement analyses when taking the credit-granting decisions. Moreover, it is considered as one of the integral steps of this process.2)The most notable obstacle to the use of financial statement analyses is the lack of proper customers’ accounting records.3)The loan loss provision is not affected by the use of financial statement analyses during credit-granting decisions. Also, the level of use of financial statement analysis does not correlate bank size.4)There is a positive correlation between the use of financial statement analysis during credit-granting decisions and between educational qualification, specialization, and years of experience of the credit officer. However, there is a negative correlation between the level of authorization granted to the credit officers, the level of training courses on financial analyses and between the use of financial statement analyses during credit-granting decisions.In the light of the study findings, a number of recommendations have been made. The most significant of which are:1)Saudi commercial banks should increase their use of customers’ financial statement analyses in addition to the collaterals provided by customers.2)The significance of improving the efficiency of credit employees in commercial banks through continued training.3)The importance of providing credit officers with sufficient authorization to carry out their duties properly.4)Conducting more research on this subject since there is scarcity of studies in this respect in the Kingdom of Saudi Arabia. 
Supervisor : Dr. TURKI BUGSHAN 
Thesis Type : Master Thesis 
Publishing Year : 1438 AH
2017 AD 
Added Date : Monday, September 18, 2017 

Researchers

Researcher Name (Arabic)Researcher Name (English)Researcher TypeDr GradeEmail
خلود محمد شحبلShahboul, Kholoud MohammedResearcherMaster 

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