THE IMPACT OF CREDIT STANDARDS AND POLICIES ON LENDING DECISIONS MAKING FOR SMALL BUSINESSES: AN APPLIED STUDY AT KUWAIT FINANCE HOUSE

Abstract

Abstract

This research aimed to identify the impact of credit standards and policies on lending decisions making for small projects, through an applied study in Kuwait Finance House, which formed a community for research. As for the research sample, it consisted of (80) respondents from department managers, heads of credit departments, and risk management employees in Kuwait Finance House. The descriptive analytical approach was used, and in the analysis of data, appropriate statistical methods were used within the SPSS program. The research concluded that there is an impact of credit standards and policies on making lending decisions for small projects in Kuwait Finance House. It was also found that he abides by the Central Bank directives and legal restrictions related to granting the loan within the maximum limits, and is concerned with sources of loan repayment that enable the borrower's small business owner to pay the debt on due dates. The researcher made a number of recommendations, the most prominent of which are: Reliance on the reputation and ethics standard of the borrower's small business owner as one of the pillars of credit standards when making lending decisions for his small project.