The Impact of the Interest Amount on the Credit Facilities Amount and Deposits Amount in Jordanian Commercial Banks for the Period (1995-2013)

Abstract

This study aimed to identify the interest amount on the Credit facilities amount and deposits amount in Jordanian commercial banks for the period (1995-2013). To achieve the objective of the study; the researcher used an econometric model of linear regression shows the relationship between the variables of study by using non-parametric method through unit root test (Augmented Dickey-Fuller (ADF)). Furthermore, the results of the study showed that there is a positive statistical significant impact of the interest amount on the amount of credit facilities in Jordanian commercial banks for the period (1995-2013), and there is a statistically significant positive impact of the interest amount on the amount of deposits facilities in Jordanian commercial banks for the period (1995-2013).  The study suggested a recommendations such as the need for attention to the client's interests with regard to the debtor rates favourable due to customer deposits to its clients, to contribute to not only maintain current customers but also attract more of them thus giving the bank the opportunity to provide and create financial resources to be able to expand its operational activities and investment activities in hopes of maximizing its profits and service its clients and optimally.

Keywords: interest amount, Credit facilities amount, deposits amount, unit root test (ADF)