Problems of Export Documentary Letters of Credit that Face Jordanian Banks During Corona-Virus Pandemic (Covid-19) “A Field Study”

Abstract

This study aimed to explore problems of export documentary letters of credit that face Jordanian banks during Corona-Virus pandemic (Covid-19). Other minor objectives include testing the relationship between these problems on one hand and each of the banks’ size (big / medium / small) and their type (Islamic / traditional) on the other hand.

To achieve these objectives, a questionnaire was designed. This questionnaire was distributed to all publicly listed Jordanian banks. The results indicated that all (16) tested problems were proved to be significant. The most important problems were governmental closures hamper export activities, existence of negative reflections upon trading between countries, and closure of some countries to their borders caused decrease in exports.

Also, the results indicated that there were no significant differences among banks neither with different sizes nor with different types. The exception for that was the significant differences noted between banks of different sizes related to closure of borders during the pandemic which found to cause lateness of documents arrival to importers and lateness of their payment.

Key words: Export Documentary Letters of Credit, Jordanian Banks, Corona-Virus Pandemic (Covid-19).