The banking sector is believed to be one of the driving forces of economic growth of many countries. Muslim jurists have realized the need to get the benefit of banking activities that adopts a lawful way with Islamic rule. Jordanian Islamic banks suffer from measure the financial performance using effective measurement tool based on various indicators. The main aim of this research is to analysis and ranks the performance levels of the Jordanian Islamic banks using suitable measurement methods. This study utilizes secondary data to measures the performance of three Jordanian Islamic banks (JIBFI, IIAB, and JDIB) over the period 2010-2013 by integrated tools; FRA, DEA, and MI. The significant results indicate that JDIB recorded the best performance rank based the three measurements tools, followed IIAB, and lowest rank is JIBFI. The contribution of this study is performance measurements of Jordanian Islamic banks based on the combination of FRA, DEA, and MI rather than ISSN 2161-7104 2017 utilize one measurement tool. Journal of Public Administration and Governance
This research primarily aims to utilise the Altman model of Z-score to examine the trend performance and predict bankruptcy among three Islamic banks in Jordan for the period of 2010-2016. Furthermore, it also aims to introduce the Z-score model as a beneficial diagnostic technique for possible causes standing behind the bank performance crises. The results of the Z-score model showed that the Jordan Dubai Islamic Bank (JDIB), Jordan Islamic Bank for Finance and Investment (JIBFI), and International Islamic Arabic Banks (IIAB) recorded safe zones in the period of study except for JDIB and IIAB which recorded a Grey zone in 2010, 2011, and 2012 and 2010, 2011, 2012, and 2013, respectively. The implication of this research is important to policymakers, managers, and investors who can use the information to monitor the safest bank among these three Islamic banks in Jordan based on the priority for lending that has to be done in the order of JIBFI, JDIB, and then IIAB. On the other hand, the Z-score was found to be a valid model to examine performance, and ratios utilised in computing the Z-score which was considered to provide workable instrumental indicators as well as being adopted to finance short-term and long-term projects by Jordanian Islamic banks.
For now, there are incomplete studies to investigate the Jordan Islamic banks' (IBs) performance. Also, there is evidence of increasing withdrawal of investors from IBs to commercial banks as a result of decreased confidence among depositors and minimize of profits. This study focuses on using secondary data analysis to measure the performance of
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