The Effect of the Determinants of Islamic and Commercial Banks' performance in Jordan on Return on Equity (ROE) An Empirical study of the period (2001–2014)

Abstract

This study aimed to test conventional and Islamic banks in Jordan performance parameters using a scale of return on equity during the period (2001- 2014) and included a sample study of Islamic Banks and the Jordan Islamic Bank for Investment and Finance, Arab Bank for International Islamic and commercial banks are the Jordan Ahli Bank, the Housing Bank for Trade and Finance. The Islamic and commercial banks of Jordan during the period (2001-2014), through statistical analysis using multiple regression model through indicators, has been included independent variables for this study (liquidity ratio, the proportion of solvency, the proportion of credit facilities, volume, market share rate, the inflation rate, the type of the bank, and the dependent variable is the return on commercial property for Islamic banks. The results of the study found that the percentage of liquidity and market share have a negative impact on the Jordanian banks in the performance index (ROE). While the ratio of loans and the size of the bank and inflation has positive impact on the Jordanian banks in the performance index (ROE), and there is no solvency ratio for any impact on the Jordanian banks in the performance of the index. The impact on the type of bank is positive and important on the Jordanian banks in the performance of the index in the sense that Islamic banks perform better than conventional banks in Jordan. This study recommends that the Islamic banks to expand market shares and increase the number of its customers to be able to withstand the competitors from traditional banks. It can be based Islamic banks in this regard by providing products and solutions that Islamic banking is more flexible and fit the customers so that they are more efficient alternative to traditional banking services.

Authors and Affiliations

Marwan Abu Hamour

Keywords

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  • EP ID EP671240
  • DOI -
  • Views 92
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How To Cite

Marwan Abu Hamour (2017). The Effect of the Determinants of Islamic and Commercial Banks' performance in Jordan on Return on Equity (ROE) An Empirical study of the period (2001–2014). مجلة الزرقاء للبحوث والدراسات الإنسانية, 17(3), 676-687. https://europub.co.uk/articles/-A-671240