The Palestinian banking sector played a leading role in the field of social responsibility during the year 2020, as the total community contribution to this sector amounted to about $8.4 million, an increase of more than 93% compared to the year 2019.

The Association of Banks indicated in a press release today, Tuesday, 4/27/2021, that community contributions were carried out over the past year to support several community sectors in cooperation with (372) partner institutions.

Mr. Bashar Yassin, Director General of the Association of Banks in Palestine, said that banks, based on their responsibilities towards our people, increased their contribution rate as a result of the difficult social, economic and health conditions imposed by the Corona pandemic, pointing out that the total support provided by banks operating in Palestine during this year was more than 8 % of its net profits.

Yassin stressed that the Association of Banks, despite the great pressure it faced during the year of the pandemic that coincided with the clearing crisis and the resulting negative economic effects on the banking sector, spared no effort in providing support to various sectors, most notably the health sector, which turned into the forefront of events and need in light of… The outbreak of the epidemic and the challenges it has posed to institutions working in this sector.

Yassin stated that the Association of Banks contributed part of the banking sector’s responsibility towards society by donating $220,000 from its own revenues.

According to figures issued by the Association of Banks in Palestine, it is clear that the health and environment sector accounted for about $5.8 million of the banks’ total contribution in the field of social responsibility during the year 2020, that is, about 69% of the total support provided, in partnership with (48) institutions working in this field.

While the banking sector provided support amounting to about $1.3 million, or about 15% of the total support for relief work, in cooperation with (205) institutions working in this field.

The education sector received support from the banking sector amounting to about 413 thousand dollars, or 5% of the total support, in partnership with (44) institutions working in this field.

The banking sector also contributed about $338,000 in partnership with 30 partner institutions to support and develop the development sector. Based on the banks’ strategy to support cultural activities, the banking sector provided support to this sector amounting to about 184 thousand dollars, which included 13 cultural institutions.

Since children constitute the largest segment of Palestinian society, efforts had to be unified in order to provide full care for them, as the banking sector supported about $156,000 for this sector in partnership with 6 institutions.

It also granted about 114 thousand dollars to encourage Palestinian women to participate actively in community and economic life in partnership with 6 partner institutions. The value of the support was distributed among several societal sectors, including sports. The Palestinian banking sector provided 48 thousand dollars in order to empower youth and support their creativity through 6 partner institutions. He also paid great attention to people with special needs by providing about 46 thousand dollars through 10 partner institutions.

The growth in the banking sector’s contribution to the field of social responsibility comes despite the fact that the profits of banks operating in Palestine declined by 35% during the year 2020 compared to the year 2019, in addition to a decline in the return on the ratio of assets and on the ratio of equity, as well as a decline in the quality of assets in light of the increasing volume of defaults.

It is noteworthy that the Association of Banks in Palestine was established in 1998, in accordance with the Charitable and Public Societies Law No. (1) of 2000 and based on the text of Article (71) of the Banking Law No. (9) of 2010, so it is a non-profit institution that represents the Palestinian banking sector and works to nurture His interests.

It is noteworthy that the number of banks operating in Palestine reached (13) by the end of the year 2020, including (7) local banks (4 commercial and 3 Islamic), in addition to (6) expatriate banks (5 Jordanian commercial banks and one Egyptian commercial bank).