"The Impact of deposits and credit facilities on the Safety of Syrian Private Commercial Banks"

Abstract

This study aimed to study the impact of deposits and credit facilities on the banking safety of the Syrian private commercial banks and their relationship with them. The needed data was collected from the financial statements, and official statistics of the banks under study, which are eleven banks that represented the study sample during the period (2011-2023). For the purposes of analysis, the Pearson correlation coefficient and the simple linear regression model were used to study the relationship between deposits and credit facilities with the banking safety and their impact on it.

The results of the study showed that, there is a very strong statistically significant positive correlation between the deposits ratio (equity/ total deposits) and banking safety in Syrian private commercial banks, there is a weak statistically significant inverse correlation between the credit facilities ratios (net credit facilities/ total assets) and banking safety in Syrian private commercial banks.

The study recommended the need to maintain high and good levels of banking safety in Syrian private commercial banks, to pay attention to investing the bank’s sources of funds and balancing them with their uses in a way that contributes to maximizing the bank’s returns at the lowest costs due to their important role in raising the bank’s performance level and not being exposed to risks, and the research also recommended benefiting from the two models reached by the research and developing them into more advanced models by relying on data for longer periods of time.