Jordanian Commercial Banks Performance Relative to Their Expenses

Abstract

This study aimed to demonstrate the impact of the financial burden and determinants  in both cases of increasing or decreasing costs which reflecting on the performance and profits of the Jordanian commercial banks, It was taking a sample of five Jordanian banks ,the researchers conducting the analysis depends on  descriptive statically and financial data , calculated average and standard deviation for these data as well as the correlation coefficient, the study found that the arithmetic mean of the total rate of costs for commercial banks in case of an increase in spending , which show that there is a negative correlation with statistically significant at level of significance (∞ = 0.05), between the rate of administrative expenses for commercial banks, and profitability, in addition to the rate of administrative expenses for commercial banks had a predictive power about profitability of banks, also in case of an increasing in expenses the opposite occurred , furthermore there is a positive correlation with statistically significant at level of significance (∞ = 0.05 ), between the rate of administrative expenses for Jordanian commercial banks in case of low expenditure rates and banks' profitability.

Keywords: Performance, determinants, financial burden.