Assessing the Impact of Macroeconomic Indicators in the Resilience of Jordanian Commercial Banks Amid COVID-19 Pandemic

Swiety, Issa Ahmad; Ali, Mohammad Sami; Al-Fasfus, Fuad; Alattar, Kayed; Zarban, Ayman

doi:10.1007/978-3-031-39158-3_66

Cited by 2 publications

(2 citation statements)

References 9 publications

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“…This beneficial impact of deposits on loans is growing as a result of the central bank's monetary policy, which reduced the reserve ratio by 75 points in 2019 and by 150 points in 2020 to counter the pandemic (Alda'as, 2023). Finally, Commercial banks are financially resilient to the unfortunate economic crisis (Swiety et al, 2023).…”

Section: Banking Sectormentioning

confidence: 99%

Short-and Long-run Influence of COVID-19 on Jordan's Economy

Istaiteyeh

2023

Advances in Management and Applied Economics

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Global economic growth projections have been revised downward in the wake of the COVID-19 pandemic. This adjustment mirrors a substantial global economic decline brought about by COVID-19-induced lockdowns, which greatly restricted labor force movement and disrupted international trade, with Jordan aligning itself with this downward trend. This report provides a comprehensive sector-specific assessment of the COVID-19 impacts on the Jordanian economy, drawing on Jordanian official reports, various news sources, and expert opinions. Jordan's battle with COVID-19 extends beyond public health, encompassing significant economic challenges, with the ongoing economic struggle potentially proving more formidable than the health crisis. Therefore, Jordan's primary focus should be on establishing a precisely targeted social safety net, given the pandemic's highlighting of widespread informality in employment across the Middle East and North Africa region, as it navigates its path to economic recovery. JEL classification numbers: I, I15. Keywords: COVID-19, Economic influence, Jordan, Microeconomics, Macroeconomics

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Section: Banking Sectormentioning

confidence: 99%

Short-and Long-run Influence of COVID-19 on Jordan's Economy

Istaiteyeh

2023

Advances in Management and Applied Economics

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“…Equation 10 represents the panel regression equation with random effects: 𝑈𝑁𝐸𝑀𝑃𝐿 = 0.248* 𝑁𝑃𝐿 + 0.080* 𝑅𝑂𝐴 -0.108* 𝑅𝑂𝐸 + 6.581 (10). …”

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confidence: 99%

Assessment of the Connection Between the Bank's Capitalization Level and the Country's Macroeconomic Stability

Pozovna,

Arkhireіska,

Panaseyko

et al. 2024

ФКДПТП

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A well-capitalized banking system is crucial for maintaining macroeconomic stability, preventing financial crises, and bolstering the economy's resilience to shocks. Governments often strive to ensure adequate bank capitalization to foster stable economic growth. This article aims to assess the relationship between bank capitalization and macroeconomic stability in 34 European countries from 2010 to 2021, based on World Bank statistics.The study utilizes the principal components method to identify relevant indicators of bank capitalization and macroeconomic stability, canonical analysis and regression analyses to detail the interconnections between these blocks. The canonical analysis confirms a link between bank capitalization and macroeconomic stability indicators with a coefficient of determination of 0.617 signifying that 61.8% of the variance in macroeconomic stability is explained by fluctuations in bank capitalization.The article presents one fixed-effect and two random-effect regression models detailing the directions and strength of influence of independent variables (NPL, ROA, ROE - indicators of the bank capitalization level) on dependent variables (INFLATION, UNEMPL, GINI - indicators of macroeconomic stability). The Wald criteria and a p-value less than 0.05 indicated that the models with random effects (UNEMPL, GINI) were statistically significant.The results reveal that a 1% increase in non-performing loans correlates with a 0.25% rise in the unemployment rate, and a 1% increase in return on assets leads to a 0.08% increase in the unemployment rate. Additionally, a 1% increase in non-performing loans raises the Gini index by 0.05%, while a 1% increase in return on equity decreases the Gini index by 0.03%. Notably, the impact of return on assets on the unemployment rate and the Gini coefficient is not statistically significant (p-value greater than 0.05).These results can inform the forecasting of national indicators, the development of tools to ensure sufficient bank capitalization, and the formulation of effective macroeconomic policies, taking into account fluctuations in banks' capitalization levels as key financial intermediaries.

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Assessing the Impact of Macroeconomic Indicators in the Resilience of Jordanian Commercial Banks Amid COVID-19 Pandemic

Cited by 2 publications

References 9 publications

Short-and Long-run Influence of COVID-19 on Jordan's Economy

Short-and Long-run Influence of COVID-19 on Jordan's Economy

Assessment of the Connection Between the Bank's Capitalization Level and the Country's Macroeconomic Stability

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