The Impact of Off-Balance Sheet Activities (OBS) on the Banking Risk and Revenue Growth for Jordanian Commercial Banks Listed on the Amman Stock Exchange (ASE)

Abstract

This study examines the impact of Off-Balance Sheet Activities (OBS) on the banking risk and revenue growth for Jordanian commercial banks. This study relied on a sample of 13 commercial banks, listed on the Amman Stock Exchange (ASE) during the period 2010-2014.This study is determining the association between off-balance Sheet Activities (OBS) as an independent variable and banking risk (namely; the credit risk, capital adequacy risk, market risk, liquidity risk, leverage risk), and revenue growth as a dependent variables . For testing the hypotheses of the study, the researchers used the descriptive analysis and the regression analysis.The results of the study provides an evidence that there is a significant association between the Off-Balance Sheet Activities and the capital adequacy risks, market risks, liquidity risks and revenue growth, that the relationships are negative for capital adequacy risk, and positive for market risk, liquidity risk and revenue growth. No significant association was evidenced between the Off-Balance Sheet Activities and credit risk and leverage risk.

Keywords: Off-Balance Sheet Activities (OBS), Banking Risks, Revenue Growth, Jordanian Commercial Banks