The Role of the Jordanian Commercial Banks in Financing Small-Scale Projects

Abstract This study aims to measure the role of the Jordanian commercial banks in financing small-scale projects , while the study sample includes the same study population in three bank (Arab Bank, Kuwait Bank, Cairo Bank) whereas an inclusive field survey was carried out on all subjects of the study population . These involved the field study conducted by using an investigation questionnaire which the researcher developed for each member of the sample, following a review of relevant literature, and according to personal interviews carried out with those interested and specialized in this filed. Thus, the researcher has complied information and knowledge which were utilized for developing and drawing up a questionnaire covering all aspects addressed within the theoretical framework and study hypotheses. In the light of the findings of statistical analysis and testing of the study hypotheses, the study came to the following conclusions: There is statistically significant relationship between (the role of Jordanian Keywords: Commercial Banks Jordan , Small-Scale and reducing unemployment. commercial banks in financing, small-scale projects) Projects , Unemployment. , Poverty. There is statistically significant relationship between the (the role of Jordanian commercial banks in financing small-scale projects) and reducing poverty.

Chapter (1) The Background and Importance of the Study

The small projects (Microfinance) of great importance in the world all, especially developing Introduction countries and small enterprises play a positive and important role in developing countries in terms of providing employment opportunities for all social groups in order to increase income and achieve selfsufficiency in part to some of the goods and services needed by society and turn some countries to develop small projects Through the preparation of an integrated strategy to fight poverty, unemployment and increasing productivity in small enterprises constitute a vital area of entrepreneurship and the exploitation of local raw resources and the redistribution of income. Given the characteristic of small projects from the properties of being an intensive work and compensated for the capital and this makes it one of the main options to alleviate poverty and unemployment, especially in developing countries, hence the small enterprises have the capacity to absorb labor and create additional jobs and the formation of a broad base of productive employment

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and skilled for the adoption of the Technique is less complicated than it makes the training more accessible to use. For this, will carry out this study to identify the theme of " The role of the Jordanian commercial banks in financing small-scale projects ", and for the view that the researcher of this study divided into three main chapters: Chapter one: The background and importance of the study. Chapter two: Theoretical framework and Previous of the study. Chapter three: Methodology of the study. Chapter Four: Data Analysis and Findings. Chapter Fife: Conclusions and Recommendations. The Problem of Study Where the problem has been identified in the research study on the (The role of the Jordanian commercial banks in financing small-scale projects). The problem is the search to identify the (The role of the Jordanian commercial banks in financing small-scale projects), as the problem of the study is to identify the (Small Scale Projects Microfinance ): 1. The problem of the study can be summarized by answering the following questions: 2. What is the role of the Jordanian commercial banks in financing small-scale projects and their role in reducing unemployment? 3. What is the role of the Jordanian commercial banks in financing small-scale projects and their Significant of Study role in reducing poverty? Can demonstrate the importance of the study through the following points: 1. Identify the The Role of The Jordanian Commercial Banks in Microfinance. 2. This study highlights the importance of the The Role of The Jordanian Commercial Banks in Microfinance. 3. Identify the role of Jordanian commercial banks in financing small-scale projects and their role in reducing unemployment? 4. Identify the role of the Jordanian commercial banks in financing small-scale projects and their role in reducing poverty? 5. It is hoped that this study provides the full benefit of all sectors interested in this subject. Objectives of the Study This study aims to identify the extent of (the role of Jordanian commercial banks in financing smallscale projects), we hope that this contributed to the study, even if something is in shedding light on the subject of the (the role of Jordanian commercial banks in financing small-scale projects), the study also aims to provide a set of proposals, conclusions and recommendations that must them. As the main objective of the study to (the role of Jordanian commercial banks in financing small-scale projects), The Limits of the Study which will be achieved through the following sub-goals: 1. To identify the nature of the words circulating among students. First: Where a student is using these study was conducted in a short period. second: spatial Limits: 2. The temporal limits: Since the words vernacular. This study is limited to Commercial Banks in Jordan. Thirdly: Study Limits: the lack of scarcity and the existence of similar studies on this subject. Hypotheses of the Study The First Hypothesis

Middle Eastern Finance and Economics - Issue 10 (2011) Ho: there is no statistically significant relationship between (the role of Jordanian commercial banks in financing small-scale projects) and reducing unemployment. Ha: there is statistically significant relationship between (the role of Jordanian commercial banks in financing small-scale projects) and reducing unemployment The Second Hypothesis Ho: there is no statistically significant relationship between the (the role of Jordanian commercial banks in financing small-scale projects) and reducing poverty Ha: there is statistically significant relationship between the (the role of Jordanian commercial banks in financing small-scale projects) and reducing poverty The Variables of the Study Microfinance (small-scale projects) A type of banking service that is provided to unemployed or low-income individuals or groups who would otherwise have no other means of gaining financial services. Ultimately, the goal of microfinance is to give low income people an opportunity to become self-sufficient by providing a means of saving money, borrowing money and insurance. Unemployment The amount of people in a society that are actively seeking work but are unable to obtain it. This number is reported as a percentage of the general work force and is used as an indicator of the health of an economy at a given time Poverty Is the lack of basic human needs, such as clean water, nutrition, health care, education, clothing and shelter, because of the inability to afford them. This is also referred to as absolute poverty or destitution The variables of the study as follows:
Independent Variable Dependent Variable
Unemployment

Microfinance
(SmallScale Projects)

Poverty

Chapter (2) Theoretical Framework and Previous of the Study

Part One: Theoretical Framework

169 Introduction The subject of the small enterprises play an important role in the national economy and stem the trend of interest in the new strategic economic and social development in Jordan, which emphasizes the geographic dimension of the overall development and optimal utilization of economic resources in a balanced manner and at the provincial level. The consensus on this role, you can play in alleviating the unemployment of the Jordanian economy. The fact that this project-intensive and labor into account the nucleus of the development of large projects and a tool to achieve the development of regional decentralization and balanced addition to the financial and technical supplies used in these projects that fit with the general features of the Jordanian economy. (Al-Janabi, 1999: p. 246) She noted a study in Jordan (2002) that projects very small and medium enterprises in The Definition of Small Enterprises Jordan Thatcontributed significantly and continues to create new jobs and reduce the volume of sector, has the criteria used to measure the size of the project vary depending on the economic which unemployment employs the project percentage of employment focusing on the and about (312 649) workers by in Jordan, where the financial and banking sectorin these projects size of fixed assets and theliquidity 45.26% of the total volume labor in the economic projects of Jordan that enjoy it, and its ability to meet financial obligations of the list. The trade unions and organizations of labor and employment, social security, he withdrew the number of employees is particularly important in determining the size of the project, as well as interested in the project working in the commercial sector institutions, competition and the quality of production, while interested in the industrial establishments the number of customers the estimated production, quality and quantity, and size of the units sold it. So, we can determine the standard one-based in all the institutions in the various economic Small Enterprises the size of the project criterion used in the food industry Characteristics of sectors to measure may not concepts in most ofservice sectorlater show that small (AL-Nsour, 1999: p. 30) major projects in be the same in the the changes or pharmaceuticals. enterprises stood over the phase of recession and started growing recognition in the industrial countries the strength of the major institutions depends on the vital small enterprises and support which contributes in supporting the production capacity and the following main characteristics of small enterprises: (Kasser, 2000: p. 42) 1. do not need a large capital small with low amount of capital required to set up 2. a low-cost opportunity to work one of the project compared to small, medium and large projects 3. the ability to change or modify the activity to the needs of the market. It is characterized by small businesses great flexibility, specially in work patterns and methods 4. Run the workforce. As Businesses Constraints Faced by Small the small projects using simple technology because it relies on laborintensive. When we talk about the problems faced by small projects in Jordan, we are not talking about the problems of particular problems faced by small enterprises in Jordan are similar to those prevailing in developing countries: 1. financing problems: small business owners face difficult access to credit and the benefits of the high volume of which increases from lower cash receipts and the inability of the project to meet its financial obligations. 2. Non-availability of trained manpower: The shortage of trained manpower is one of the main obstacles to development in most third world countries

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3. Problems with availability of raw materials: small businesses rely mostly on local raw materials 4. marketing problems: confronting small-scale projects on problems related to marketing, where these projects can not follow the modern marketing methods due to the lack of managerial marketing. 5. problems related to domestic demand and external to the products of these projects. 6. administrative problems as most of these projects are managed by the owners of the owners who do not have in some cases, sufficient administrative experience to manage such projects 7. problems related to product quality: The small businesses are using advanced methods of production and thus lead to a decline in their products compared to products of major projects. 8. The small scattered on a large scale and therefore it is not possible to relatively accessible, making it difficult for development agencies identified and contacted. 9. in many of these projects is of concern with health and safety as weak and lacking in most of these projects to the existence of health insurance and social security. 10. low ability self-development and expansion due to neglect aspects of research and Part Two:development and lack of conviction of its importance. (Sheikh, 2004: p. 62) Main Bank in Jordan (The Definition of the Banks in Jordan) First: the Establishment of the Central Bank Jordan has begun preparing for the establishment of the Central Bank of Jordan in the late fifties. A law the Central Bank of Jordan in 1959. And completed measures directly to the bank for his work on the first day of the month of October 1964, to succeed the Jordanian currency, which had been founded in 1950, the government owns the entire capital of Jordan Central Bank, which was increased in stages, Second: Arab Bank ten million Jordanian dinars, despite government ownership of capital, the from eight million to Is the Amman-based Arab Bank, Jordan's first financialhas independent legal personality. the Arab Central Bank in accordance with the provisions of law institution to the private sector in world. The Arab Bank is ranked one of the largest global financial institutions, as listed Fitch (A-) and Standard & Poor's (A-) and Moody's (A3). The capital base of the Arab Bank, U.S. $ 6.9 billion in total assets of $ 38.3 billion and income before tax amounted to 1001.1 million U.S. dollars in 2007. Third: Jordan Kuwait Bank Bank of Jordan Kuwait Bank was established in Amman, a Jordanian joint investment between the Jordanian and Kuwaiti investors and investors from other Arab countries, in 1976. 30 is a section in the different regions of Jordan, as well as several branches in Palestine and Cyprus. In 1976, the Court considered a group of Jordanian and Kuwaiti investors, the idea of attracting capital from a rich Kuwait and invested in a country known for efficiency and the development of the labor force, and it has available and the areas where investment and development opportunities, such as Jordan, the success will be certain, this has been done, and today, is Jordan Kuwait Bank and one of Fourth: Cairo Amman Bank the few projects that have been established and contributions 1960 as joint success and was able Bank of Cairo Amman Bank in Amman, Jordan was founded in of Arab a Jordanian public to shareholding, Cairo Amman Bank is currently ranked sixth among banks operating in Jordan in continue. terms of asset size, and second among banks operating in Palestine in terms of asset size and third in terms of number of branches.

(Delfiner, Silvana, 2007) Study is " Commercial Banks and Microfinance " The term microfinance (MF) refers to the provision of banking services to lower-income people, especially the poor. In the Middle Eastern Finance and Economics - Issue 10 (2011) 171 history of MF, microfinance institutions (MFIs)1 have been the first to identify the large unserved demand for microcredit in developing countries, develop methodologies for delivering and And branches of Bank of Cairo Amman Bank has a network of branches scattered in a recovering balanced small loans, and begin credit programs for the each other with the modern communication and informed throughout the UK and linked to poor. Given their nature, though, MFIs can normally network, meet only a fraction to carry out all banking operations and is very areas. Commercial branches enabling customers of the demand for microloans in their service easily through the banks have begun and Third: Previous potentially profitable business and are starting to venture into this field. This Study to see of as bank's 68 branches in Jordan and Palestine offices MF the a approach to MF (known as downscaling") is different from that of upgrading or transforming MFIs into regulated institutions. Evidence is currently showing that financial institutions can profitably attend MF needs on a massive scale. This paper aims at exploring the main aspects and future outlook in connection with commercial banks provision of MF services. A review is made of the incentives and disincentives for financial institutions to venture into the MF sector, and their specific advantages and disadvantages when competing in this market. A classification of the main operating models currently adopted by banks for entering the MF market is established as well as an analysis of the local regulations that could potentially apply to each of these models. (Mayada, 1997) Study is " Commercial Banks in Microfinance New Actors in the Microfinance World " Commercial banks are becoming the new actors in the world of microfinance now that repressive financial market policies have been dismantled in many developing countries. This study documents and discusses the major issues banks must confront to provide micro lending services to low income clienteles. The recent experiences of eighteen banks are investigated in terms of new products and financial technologies, and organizational structure and regulation. Their institutional performance in outreach and sustainability is also highlighted from interviews with bank officers. Lessons from these experiences are summarized along with recommendations to the donor community to facilitate these new initiatives. Elisabeth, (2005) study is" The Service Company Model: A New Strategy for Commercial Banks in Microfinance" ACCION International has developed relationships with several commercial banks to launch and expand microfinance operations through an approach known as the service company model. This paper describes how the service company model addresses the key issues in commercial bank entry into, microfinance identifies success factors for establishing a wellfunctioning microfinance services company, and presents results and lessons from the two microfinance service companies with the longest experience. In a Study to Judith Brandsma and Dinan Kyats (1996) for small loans in Jordan, sponsored by the World Bank from Jordan, which aimed to assess the need for financing small projects and opportunities for the development of small enterprises, and income-generating activities, and assessment of existing capacity to provide non-financial services for small businesses, And assess the possibility of finding initiatives from the private sector to provide funding for small projects, and highlighted the findings of the report and there is a need to finance small enterprises with the need for technical support to transform ideas into projects that generate income, and the financing of small enterprises is not the only option for the alleviation of poverty, but have to walk so In parallel with the development of community-based organizations the private sector, which led to the emergence of a

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The study Munif Abu Rish (2001), Study is " Income Generating Projects in Jordan The Experience of The Jordanian Hashemite Fund for Human Development", and submitted to the Nippon Foundation of Japan and that the goal of the researcher to review the Jordanian experience of incomegenerating projects and the experience of the Jordanian Hashemite Fund since the beginning of work in this area until the year 2000 , in terms of goals and achievements and have been fulfilled and obstacles that confronted him, and shows the researcher that the funds granted to Jordan for incomegenerating projects was much more of the requirements and that the government's role in financing these projects through intermediate institutions and also directly was not planned, but characterized spontaneity, author finds In his study that the reasons behind the failure of income-generating projects until the year Chapter (3) the most important of the absence of economic and social studies designed to 1998, mention Methodology of the Study assess Study Population and Sample projects objectively non-existence of investment plans, and the weakness of previous experience with Study population consists of all student in primary stage , and all and conflicting policies and the availability of big capital and the diversity of funding sources young man which graduated university in Jordan. requirements by funders. Study sample includes the same study population(64Officer)in Three bank (Arab Bank, Kuwait Bank, Cairo Bank) whereas an inclusive field survey was carried out on all subjects of the study population. Methods of Gathering Data Methods adopted for gathering data in this study consisted of the following: 1. Secondary data gathering methods: These include previous related literature, books, articles studies along with periodical bulletins and magazines and specialized periodicals. Such data will provide the basis for drawing up the theoretical and conceptual framework of they study together with the proper hypotheses. 2. Primary data gathering methods: These involved the field study conducted by using an investigation questionnaire which the researcher developed for each member of the sample, following a review of relevant literature, and according to personal interviews carried out with those interested and specialized in this filed. Thus, the researcher has complied information and knowledge which were utilized for developing and drawing up a questionnaire covering all aspects addressed within the theoretical framework and study hypotheses . Period of the Study Data was collected on the sample banks in August and first semester 2010.This study is considered cross-sectional study because data was gathered just once over a period of time. Unit of analysis: Information gathered through a questionnaire that handed out to officer. Data analysis and hypotheses testing methods The Statistical Package for the Social Science (SPSS) was used for analyzing the data and testing of study hypotheses. The following statistical methods have been used for analyzing the data and testing study hypotheses: 1. Working out frequency rates and percentages relevant to the questionnaire paragraphs. 2. Using the One Sample T-Test for testing the fifth general hypothesis .

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Chapter (4) Data Analysis and Findings

Characteristics of Respondents and the Sample The descriptive analysis was used to get frequencies and percentages to analyze the number and percentages of respondents to each question for the parts one and two in the questionnaire. Part One: Characteristics of respondents: The following tables summarize the results of descriptive analysis: 1) Number of year of experience in the field of banking business
Table 1: Characteristics of respondents according to the years of experience
Years Less than 5 years 5-10 years 11-15 years Above 15 years sum Freq. 30 15 9 10 64 % 46.9% 23.4% 14.1% 15.6% 100%

As shown in Table (1) 46.9% of the respondents have experience less than 5 years in the field of banking business, 23.4% of them have (5-10) years, 14.1% of them have (11-15) years and the rest have above 15 years of experience in the field of banking business. These findings reflect that high percentage of the respondents has limited experience in the field of banking business. Figure (1) Figure 1: Characteristics of respondents according to the years of experience illustrates these findings:

30 25 20 15 10 5 0 Freq.
less thn years 5-10 years 11-15 years above 15 years

2) Age
Table 2: Characteristics of respondents according to the age
Age 20-25 years 26-31 years 32-37 years 38-43 years 44-49 years 50 years and older sum Freq. 10 24 11 11 8 64 % 15.6% 37.5% 17.2% 17.2% 12.5% 100%

Middle Eastern Finance and Economics - Issue 10 (2011) As shown in Table(2), the highest percentage of respondents were between 26-31 years ,which constituted 37.5 % of the respondents and the majority of the respondents were less than 38 years, whilst only 12.5 % of them were between 44-49 years and there weren't any respondents 50 years and Figure 2: Characteristics of respondents according to the age older .These findings are illustrated in Figure(2):
25 20 15 10 5 0 Freq. 20-25 years 26-31 years 32-37 years 38-43 years 44-49 years 50 years and old

3) Education
Table 3: Characteristics of respondents according to the education
Freq. 9 40 14 1 64 % 14.1% 62.5% 21.9% 1.6% 100%

Education Intermediate Diploma and lower Bachelors Degree. Masters Degree Doctorate Degree sum

It was found that 14.1% of the respondents have Intermediate Diploma and lower, 62.5% of the respondents have Bachelor's degree, 21.9% of the respondents have master's degree and 1.6% them have Doctorate Degree. 3: Characteristics of respondents according to the education Figure Figure (3) illustrates these findings:
40 35 30 25 20 15 10 5 0 F re q .
B a c h e lo rs ' D e g re e M a s te rs 'D e g re e D o c to ra te D e g re e In te rm e d ia te D ip lo m a a n d lo w e r

4) Amount Loan Account your Bank (from 2000-2009):

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Table 4: Characteristics of banks according to the (Loan Account)
Year 2000-2003 2004-2005 2006-2009 % 36.8% 42.1% 21.1%

Loan Account 20000000 and less 20000001-40000000 Above 40000000

The Loan Account ,as shown in Table(4),clearly shows that banks their Loan between 20000001-40000000 were more than (2004-2005) ( 42.1%). These findings are illustrated in Figure(4):
Figure 4: Characteristics of banks according to the Loan Account

8 6 4 2 0 F req .

2 0000000 a nd less 2 0000001-4000 0000 a bo ve 400 00000

Discussion of Results Mean and standard deviation were used to describe attitudes of the sample toward questions in parts in the questionnaire. Moreover, number of banks which responded positively to each question was worked out. In order to determine whether each bank responded positively to each question or not , the mean for responses to each question has been taken from each bank. Then the mean of the scale 3 was taken as a standard for judgment . So, if the result is lower than 3 , the response will not apply to the bank; Table 5: Findings and statistical analysis for questionnaire but if the result is higher than 3, the result will be applicable.
QuestionsMeanStd. Deviation First Section: the role of Jordanian commercial banks in financing small-scale projects) and reducing unemployment 1-The Bank is giving loans to young people and help them to build their future4.51560.5343 2-The Bank is giving loans to unemployed persons provided that adequate safeguards3.43751.4679 3-The bank instalments amount to long periods of time in order to facilitate payment by3.57811.5098 persons 4-That the loans by the Bank to grant to help people in reducing the problem of3.56251.4679 unemployment among young people 5-In the case of failure to repay the loan the bank to give a chance for the payment of the3.46871.3566 loan amount Second Section: (the role of Jordanian commercial banks in financing small-scale projects) and reducing poverty 6-The Bank is giving loans to people in need.3.23441.3886 7-Requested by the Bank of the persons providing a range of securities to ensure the3.17191.4644 ability to repay the loan. 8-The loans provide them the bank to help people to start their lives3.39061.5697 9-The loans by the Bank to grant to help people alleviate the problem of poverty in3.29691.3295 Jordan 10-In the case of failure to repay the loan the bank to give a chance for the payment of3.90621.2436 the loan amount

Middle Eastern Finance and Economics - Issue 10 (2011) In general, It was found that there were Positive attitudes toward all questions because their means are higher than mean of the scale (3)(*). Part Four: Test of hypotheses: The first hypothesis Ho: there is no statistically significant relationship between (the role of Jordanian commercial banks in financing small-scale projects) and reducing unemployment. Ha: there is statistically significant relationship between (the role of Jordanian commercial banks in financing small-scale projects) and reducing unemployment
Table 7: Test of hypothesis (1)
N 64 df 63 Sig 0.000 Result of Ho reject

T 26.604

One Sample Test was used to test our hypothesis and we found that (Sig = 0.000) is Lower than (0.05) .According to our decision rule: Accept (Ho) if (Sig) value is greater than (0.05) and reject (Ho) if (Sig) value is less than 0.05. We will, therefore reject (Ho) and accept (Ha). Thus , there is statistically significant relationship between (the role of Jordanian commercial banks in financing small-scale projects) and reducing unemployment. The second hypothesis: Ho: there is no statistically significant relationship between the (the role of Jordanian commercial banks in financing small-scale projects) and reducing poverty Ha: there is statistically significant relationship between the (the role of Jordanian commercial banks in financing small-scale projects) and reducing poverty
Table 8: Test of hypothesis (2)
N 64 df 63 Sig 0.000 Result of Ho reject T 25.625

One Sample Test was used to test our hypothesis and we found that (Sig = 0.000) is Lower than (0.05) .According to our decision rule: Accept (Ho) if (Sig) value is greater than (0.05) and reject (Ho) if (Sig) value is less than 0.05. We will, therefore reject (Ho) and accept (Ha). Thus , there is statistically significant relationship between the (the role of Jordanian commercial banks in financing small-scale projects) and reducing poverty.

Chapter (5) Conclusions & Recommendation

First: Conclusions In the light of the findings of statistical analysis and testing of the study hypotheses, the study came to the following conclusions: 1. There is statistically significant relationship between (the role of Jordanian commercial banks in financing small-scale projects) and reducing unemployment. 2. There is statistically significant relationship between the (the role of Jordanian commercial banks in financing small-scale projects) and reducing poverty.

(*) mean of the scale = weight of Likart answers/5 = (1+2+3+4+5)/5=3

Middle Eastern Finance and Economics - Issue 10 (2011) Second: Recommendation

177

Informed by a researcher in the light of statistical analysis for the researcher can develop the following recommendations: 1. The need to facilitate the special procedures to obtain a loan from the young people in order to reduce unemployment. 2. The need to give out for a long period of repayment instalments to creditors arising from the category of poor people who do not work. 3. Increasing the grace period if it does not pay a premium for people with small projects. 4. Need to encourage the enactment of strategies and policies to encourage commercial banks to finance small projects to reduce the problem of poverty and unemployment

References
[1] [2]

[3] [4] [5] [6]

[7] [8] [9]

AL-Nsour, Iyad, (1999) The role of governmental financial institutions in the development of small projects in Jordan, Master Thesis, University of Jordan, Amman, , p. 30 Janabi, Ajami, (1999), finance agricultural projects in the governorate of Mafraq, the prospects for economic development and social development in the countryside and the desert of Jordan, Al-Bayt University, , p. 346. Kasser, Nasr, (2000) Management of small projects, Dar al-Hamid, a library for the publication and distribution, Jordan, Amman Sheikh, Fouad Naguib, (2004) a culture of innovation in small business facilities in Jordan, Arab Journal of Management, Vol 24-14, p. 62 Delfiner, Miguel, Peron, Silvana(2007), Commercial Banks and Microfinance, University Library of Munich, Germany in its series MPRA Paper with number 10229 Mayada M. Baydas (1997)COMMERCIAL BANKS IN MICROFINANCE NEW ACTORS IN THE MICROFINANCE WORLD, Rural Finance Program Department of Agricultural Economics The Ohio State University 2120 Fyffe Road Columbus, Ohio 43210-1099 Elisabeth Rhyne (2005) The Service Company Model: A New Strategy for Commercial Banks in Microfinance, ACCION international, Series No, 6. Brandsma Judith & Others, (1996) Jordan Micro Credit Mission, World Bank. Abu Rish Munif, (2001) Income Generating Projects in Jordan The Experience of The Jordanian Hashemite Fund for Human Development, (JOHUD) Amman, 2001

Appendix Questionnaire
Dear Respondent: The researcher is preparing a Master's Thesis studying " The Role of The Jordanian Commercial Banks in Financing Small-Scale Projects ". This questionnaire consists of two parts all of which you are kindly requested to answer. However, information and responses in this questionnaire will be kept in strict confidence and will be used solely for research purposes. Thank you for your kind cooperation, If you want to obtain a summary of the results of this study. Thank you for your kind cooperation Researcher

Middle Eastern Finance and Economics - Issue 10 (2011) Part I: This part consists of general data on the respondent
1- Number of year of experience in the field of banking business: Less than 5 years from 11 to 15 years 20-25 Years2-Age: 26-31 years 32-37 years 3-Education: Diploma and lower Masers Degree 4- Amount Loan Account your Bank (from 2000-2009): from 5 to 10 years from Above 15 years 38-43 years 44-49 years 50 years and older Bachelors Degree Doctorate Degree

Part II: Subject of Study Please specify how far you agree that the following factors. by marking X in the square applicable to the statement.
PhraseAgree StronglyAgreeNeutralDisagreeDisagree strongly First Section: the role of Jordanian commercial banks in financing small-scale projects) and reducing unemployment 1. The Bank is giving loans to people in need. 2. Requested by the Bank of the persons providing a range of securities to ensure the ability to repay the loan. 3. The loans provide them the bank to help people to start their lives 4. The loans by the Bank to grant to help people alleviate the problem of poverty in Jordan 5. In the case of failure to repay the loan the bank to give a chance for the payment of the loan amount Second Section: (the role of Jordanian commercial banks in financing small-scale projects) and reducing poverty 6. The Bank is giving loans to young people and help them to build their future 7. The Bank is giving loans to unemployed persons provided that adequate safeguards

8. The bank installments amount to long periods of time in order to facilitate payment by persons 9. That the loans by the Bank to grant to help people in reducing the problem of unemployment among young people 10. In the case of failure to repay the loan the bank to give a chance for the payment of the loan amount