Palestinian banking sector is growing as region, world prepare for change driven by technology

AMMAN — The third session of "the reality of the Palestinian banking sector" conference kicked off on Wednesday under the theme "Innovation in financial technology and the future of banking services".

The two-day conference focused on the role of central banks in supporting digital transformation and confronting the new organisational and control challenges.

Organised by the Union of Arab Banks, in cooperation with the Central Bank of Jordan (CBJ), the Palestinian Monetary Authority, the Association of Banks in Jordan (ABJ) and the Association of Banks in Palestine, the event shed light on the advancements in financial technology.

Participants, including Arab bankers, discussed the impact of these technologies on financial stability and possible systemic risks, as well as the development it would drive in the financial services sector, the Jordan News Agency, Petra, reported.

CBJ Governor Ziad Fariz noted that the region, as well as the world, is nearing a turning point that will reflect greatly and positively on the quality and level of services based on technological invitations and the digitisation of services.

This will drive transformation towards an economy that is dependent on knowledge and innovation, Fariz said.

Chairman of the ABJ Hani Qadi explained that banks are at the centre of the Palestinian finance and banking sector, as well as the economy.

Bank assets are estimated at some 109 per cent of the volume of the nominal gross domestic product (GDP) of Palestine, and deposits at 83 per cent, while credit facilities amount to some 55 per cent of the GDP, he highlighted.

This “reflects the relative importance of the sector”, Qadi said.

In a speech on behalf of Qadi, Adli Qandah, director of the ABJ, said that 14 banks operated in Palestinian last year, including seven Palestinian banks and six Jordanian banks, with 351 branches.

Qandah stressed that the Palestinian banking sector, during the last 10 years, has achieved a noticeable growth rates with the volume of combined assets of the Palestinian banking sector valued at $16.1 billion by the end of 2018, registering 7.8 per cent growth.