The role of analyzing financial statements in making the decision to grant credit in Saudi commercial banks "Applied Analytical Study"

The study aimed to know the extent to which commercial banks in the Kingdom of Saudi Arabia rely on financial statement analysis when granting credit. The study relied on the descriptive analytical approach, and the inductive approach. The questionnaire form was used as a primary source for obtaining the data necessary to conduct the study. The study reached a number of results, the most important of which are: Commercial banks in the Kingdom of Saudi Arabia rely on analyzing financial statements when making the decision to grant credit. There is a statistically significant relationship between the results of the analysis of financial statements using financial ratios and rationalizing credit granting decisions in commercial banks in the Kingdom of Saudi Arabia. The study recommended a number of recommendations, including: The necessity of activating the analysis of financial statements in financial ratios when making the decision to grant credit in commercial banks in the Kingdom of Saudi. And to conduct studies on bank credit risks, their causes, and how to treat them.