Performance of Commercial Banks Profitability in Jordan (2005 -2019)

Abstract

The commercial banks remain one of the important keys of financial intermediaries that provides Variety of services in the economy over the states around the world, therefore this paper aims to investigate the profitability of Jordanian commercial banks in Jordan. The effect of internal and external determinants of Commercial Jordanian Banks profitability has been studied in this paper, the paper utilized of annual time series both internal and external data of these determinants for the period 2008 to 2018. Using the time series analysis and panel data techniques to measure the impact of these determinants, the sample consists of 21 Banks, followed for 14 years the quantitative method in this paper focuses on the statistical. The R 2 determinants within are 64% and LSD R 2 is 76% thus in both R 2 the independent variables interpret the changes which happen in ROE, and the R 2 is good to do this the analysis and lags depend on Hanan-Quinn which is 67.72042. The groups have a common intercept and the LSDVF 3.658 is > than P-value we reject the null hypothesis, and accept the alternative hypothesis that there is a relationship between ROE and vector of (bank specific). Results indicate that for bank-specific which consist of four variables such as, credit risk, equity, loan, saving the deposit. Where the industry-specific consist of market concentration, and also the macro-economy, determinates include: GDP Per capita, lending interest rate, inflation-unemployment ratio, Total Government revenue / GDP. Money supply 2. The analysis shows that bank-specific has a positive significant sign to bank profitability. While the market concentrates have appositive effects. Meanwhile, the macroeconomic variables are beyond the scope of management control and show appositive signs.

Competition, Survival Issue, and Performance Constraints of Banks: Evidence from Ethiopian Private Commercial Banks

“…Te healthiness of capital adequacy may improve the income of banks; consequently, enormous capital supports operations to be more fexible in dealing with various investment prospects [26]. Alalaya and Ahmad [27] found that capital adequacy positively and signifcantly related to the fnancial performance of commercial banks measured by ROA at a 5% level of signifcance [28,29]. Moreover, the study conducted by Eric et al [30] reveals that the relationship between capital adequacy and bank profitability was positive [31,32].…”

“…For this study, liquidity was measured by the ratio of total liquid assets to total deposits and cash to total deposits. According to Alalaya and Ahmad [27], Eric et al [30], Jaouad and Lahse [52], Kryeziu and Hoxha [33], and Mahmud et al [34], the liquidity level infuences the bank proftability positively.…”

The effect of corporate income tax on financial performance: Evidence from Palestine

“…Therefore, this study aims to investigate whether CIT influences the Palestinian company's financial performance and market value. Taking into account the political risk and unstable environment in the Palestinian context, this area is exposed to political risk and instability for quite a long time (Alalaya, & Al Khattab, 2015;Elfeituri, 2022).…”