Banking Credit Policy in Yemen

Abstract

This study aims to address credit policy and banking credit, and to identify the key elements of credit. The adopted a descriptive-analytical approach was adopted for this purpose.  The study is organized into an Introduction, four sections covering key components of credit policy, determinants of credit policy, contents of credit policy, types of acceptable collateral, risks and challenges of credit policy respectively, and a conclusion. The study results showed that contribution of self-resources of commercial banks in granting credit was weak. It was also revealed that banks' consideration for the rules and regulations governing credit granting was lacking, which were of great importance in reducing credit risks