This paper investigated the impact of noninterest income on the performance of 13 banks in Jordan during the period 2000-2015. The impact of size of bank, loans, capital adequacy and overhead expenses on banks performance found to have a significant impact on banks performance. In more details, overhead expenses decrease bank performance, while capital adequacy, loans and size increase it. In addition, non-interest income increases equity capital adequacy and this in turn affects the profitability positively.
This paper highlights the nonlinear relationship between inflation and investment in Jordan. Applying a threshold model over the period 1980-2016, the results reveal that investment is retracted by inflation when inflation rate reaches a threshold of 10%. This suggests that inflation rates should remain below 10% to sustain and improve investment levels.
This paper examines the impact of the quality governance on the energy sector in the MENA region, particularly, political stability and government effectiveness. Several macroeconomic variables are taken into account in a panel analysis, and the study employs the POLS and Fixed effect approaches to find out if the government's effectiveness and political stability among all governance indicators have a vital role in promoting energy efficiency in MENA. Panel data for the period 2003-2018 are used. The empirical results show he political stability and the effectiveness of government are positively affected the energy consumption for the MENA countries. Moreover, the findings of the study show a negative relationship between energy consumption and economic growth. This situation referred to the unimproved relationship in the MENA region, as literature confirms no relationship exists for some countries in the region.
In this paper, we analyze the relationship between financial stability and monetary policy in Jordan. We consider an impulse function using a VAR framework. A Granger causality test employed to explore the impact of monetary policy shocks on a financial stability index. Findings emphasize that changes in the excess reserves impact positively on the financial stability index, however, the effect is small in magnitude. On the same direction, changes in domestic credit have a significant impact on the financial stability index. These findings support the explanation that monetary policy has a significant effect on the financial stability through affecting its medium target, using its instruments, mainly excess reserves.
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