The Factors Affecting on Excess Liquidity of the Islamic Banks: Case Study on the Islamic Banks in the Jordan

Abstract

The problem of the study that there is excess liquidity of the Islamic bank , the study found that there is significant statistical impact statistical impact of factors affecting (the instructions of the Central Bank and the Non-Islamic banks' ability to deal with interest and Lack of the financial markets Islamic and the lack of an Islamic financial market) on the excess liquidity of the Islamic banks , and the study has recommended : the central bank should amend the instructions to allow Islamic banks to borrow with interest-free, and  the Islamic banks need to sprayed new banking services in order to be exploited  the excess liquidity.

Keywords: Islamic Banks, Central Bank, Financial Market, Excess Liquidity.