Title:
THE EFFECT OF CONSUMER LOANS ON PUBLIC SECTOR EMPLOYEES IN WEST BANK USING ELSI SHORT FORM

Authors:
Jehad Nafez Al Sheikh Yousef, Dr. Ooroubah A. R. Mahmoud, Palestine

Abstract:

This study aimed to introduce the impact of consumer loans on the standard of living of public sector employees in the West Bank using ELSI Short Form, The researcher has used the descriptive method and interviews in order to achieve the objectives of this study, as this method fits the current study in terms of providing detailed data on the different variables. While the study population consisted of all workers of public sector in West Bank, the researcher selected-Non-Probability purposive sample out of Bank of Jordan in Ramallah city considering it as the economic capital of Palestine and a major center including employees from all over the West Bank, The researcher also used (ELSI Short Form) to measure the standard of living, which is one of the models of indicators to measure the standard of living, and then the questionnaire was distributed randomly into two categories. The sample was consisted of (100) public sector employee, (50) borrowers and (50) non-borrowers, After analyzing the results of the survey and the study, the results relatively revealed that the standard of living for employees who do not have loans are relatively better than those who have actually take out a loan, in addition, the results showed that there is statistically significant effect at the level of significance (α≤0.05) between the net income of the borrowers and non-borrowers of the public sector employees in West Bank, which means any increase of one unit on the net income will lead to improve Borrowers and non-borrowers standard of living. In addition, the results showed differences related to place of resident (City or Camp), where the value of differences were Statistically significant in favor of the first category (City), while there was no differences with the other study variables. The study concluded with a set of recommendations, starting by prioritizing granting consumer loans based on the client needs through designing programs that take into consideration the functional, geographical and demographic diversity, in addition to spreading and raising awareness of banking facilities, policies and terms, finally, by putting an effective regulatory system established by Authority of Monetary on the consumer loans at all levels, to ensure and monitor its continuing effects on the economy and its implications on the standard of living.