Abstract

The study aims at identifying the extent of the impact of achieving the dimensions of financial inclusion on the banking performance in Palestine by working to reach, use and proliferate these services and their quality, which is represented in indicators (the development of customer deposits, the development in the number of bank branches and offices, the development in the number of those who have bank accounts, the development in the number of ATM cards, and the development in the number of ATMs and the number of POS machines). The banking performance was measured using the following financial measurement indicators (Return on Assets ROA, and Return on Equity RO). The study relied on the annual financial reports, that were published statistics issued by the Palestinian Monetary Authority for the banks under study from (2001) to (2018). For the purposes of the study, the necessary statistical tests were used in this regard, which are the multiple linear regression model and the T-Test model. The study also compared between the averages of financial statements for the period before applying financial inclusion with the averages of financial statements for the period after applying financial inclusion. The most important findings of the study is that the application of financial inclusion dimensions have an impact on the banking performance in Palestine in terms of the presence of growth and development in all banking indicators that reflected its impact on increasing the achieved banking returns. The growth in the return on assets and the return on equity was greater than the growth in the return of credit facilities and the return on investment.The most important recommendations of the study are that the study recommended strengthening financial inclusion operations in Palestine and setting up the necessary mechanisms to support its application in banks in a manner that is suitable to achieving acceptable gains for banks, clients and capital owners alike. The study also recommended that the banking sector should pay attention to improving methods of managing depositors’ funds through diversification and invent advanced banking services that keep pace the level of banking services provided by banks in developed countries.