Bank Concentration and Financial Risk in Jordan

Risks, Bank Concentration and their Impact on Stability in Jordanian Commercial Banks

“…The findings in Table 6 also demonstrate that the impact of concentration (CON) on the stability of Jordanian commercial banks is positive and statistically significant. This result is in line with finding of prior studies such as Aldomy, et al,(2020) and Marchionne and Zazzaro (2018) who point out that concentration is positively related to stability and they justify this relationship by the fact that high market power has crucial role in the stability of banks. Table 6 also shows that the profitability gauged by ROA negatively and statistically affects the stability of the Jordanian commercial banks.…”

“…The Lerner index, which measures a bank's concentration, and the Z-score, which measures the bank's stability, both show a negative correlation in the study. Aldomy (2020) from Jordan provided evidence to support the concentration-fragility hypothesis. The study measures bank concentration using three variables i.e., Herfindahl-Hirschmann Index, the Lerner index, and concentration index.…”

“…Second, some previous studies found that concentration positively affects the stability of banks (Aldomy, Thim, Lan, & Norhashim, 2020;Boyd, et al, 2004), while others found that concentration negatively affects the stability of banks (Uhde & Heimeshoff, 2009). This research aims to close this knowledge gap and offer evidence to support the current literature.…”

Readiness for implementing innovations in banking in advanced and emerging economies

“…A detailed analysis of scientific papers characterizing the features of the development of financial and economic relations showed the dependence of the development of banking innovations on the following factors: economic conditions, the emergence of digital currencies and their use as an alternative to fiat money (Knezevic, 2018;Nikic, 2018), the digitization of various spheres of public life (Cwiklicki & Wojnarowska, 2020;Petroye et al, 2020), the competition in the banking service market (Skvarciany et al, 2018;Aldomy et al, 2020), sufficient financial resources (Leonov et al, 2014), trust in the domestic participants of the banking system (Brychko et al, 2019(Brychko et al, , 2020, the efficiency of banks (Kasim et al, 2019;Boďa & Zimkova, 2019), business transparency (Vasilyeva et al, 2017). Structural modelling (Prayitno et al, 2021) and regression analysis (Vasilyeva et al, 2014b) are used to determine the correlation degree between banking development indicators.…”

La Concentración Bancaria, Medida a Través De Diversos Indicadores. Caso Peruano

“…La concentración bancaria ha cobrado importancia desde los años 80; se realizaron diversos estudios en Europa, Asia, América y África en el que se analizan los efectos de la concentración bancaria en cuanto a competencia (Kahn et al 2005), crisis (Levine, Demirguk-Kunt y Thorsten 2003), márgenes de tasas de interés (Espino y Carrera 2006), estabilidad (Aldomy et al 2020), corrupción (Demirgüç-Kunt y Levine 2000) y poder de mercado (Piedrabuena 2013).…”