Impact of Economic Variables on the Performance of the Jordanian Banking Sector

Abstract

The article  aims to appear the level of achievement in the Jordanian commercial banks, there are several goals for this study as a study developments in the Jordanian banking sector and financial legislation in addition to realizing the concept of banking performance ,in addition to the main factors that determine the level of performance as well as the degree and quality of performance in the domestic commercial banks, compared with foreign commercial banks, which operates in Jordan, and measure the level of concentration of the banking sector of Jordan, on the other hand the study used some statistical methods to test the degree of performance for commercial banks, and to measure the performance of the Jordanian Commercial Banks ,also the study relied on a methodology (Panzar-Rosse) to evaluate the performance of commercial banks, which contributed to test  the assumptions which adopted by the study in order to determine the effect of independent factors on the dependent variable, thus can formulate some equations that led to show results, and notably that there is no relationship between performance in the banking sector and economic variables such as; inflation, gross domestic income, balance of payments and budget deficits, The results also showed that there is a very high banker concentrating for the study sample on assets, in addition to the presence of  concentrating in banking deposits, results showed also concentrating in bank credit facilities, with it's close to the average rate.

Keywords: economic variables, concentration banking, banking performance    .