Bank Financing and Firm Growth: The Role of Islamic Bank Financing

Al-Rdaydeh, Mahmoud; Muhammad, Joriah; Ibrahim, Haslindar

doi:10.32479/ijefi.8278

Cited by 2 publications

(2 citation statements)

References 47 publications

(60 reference statements)

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“…12, enacted in 1964) and its Commercial Law, enacted in 1966 that stipulates their data availability and access. Additionally, Jordan was chosen due to its strategic and vital location in the Middle East, along with Jordan's economic channel to large markets with more than one billion consumers (Matar et al, 2018;Al-Rdaydeh et al, 2019). Despite Jordan's importance and role as an emerging economy, Jordan's business sector still experienced downturns that implicated its performance over the years (Matar et…”

Section: Methodsmentioning

confidence: 99%

Exploring the effect of market risks on bank profitability: Evidence from Jordan

Al-Rdaydeh

Hamouri

Rahman

et al. 2022

Banks and Bank Systems

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This paper observes the dynamic impact of market risks on the profitability of banks listed on the Amman Stock Exchange (ASE) from 2010 to 2018 in Jordan. To identify the link, the relevant data were retrieved from the annual statements of Jordanian banks and one-step Generalized Method of Moments (GMM) approach was employed to diagnose the error regarding endogeneity. The results of the applied methodology showed that market risks impacted the profitability of Jordanian banks. Furthermore, the study also presented factors that affected the banks’ profitability, such as capitalization and bank size. The previous year profitability has a positive effect on the next year profitability. Moreover, stock market returns (SMRs) directly affect ROA and ROE because when SMRs enhances, bank profitability will increase. Bank managers should ponder the volatility of the market risk while enhancing the profitability of a bank. This relationship of the variables regarding Jordanian banks listed on the ASE was not considered before in the financial economics literature. Recommendations were also provided for Jordanian bank managers to mitigate market risks.

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Section: Methodsmentioning

confidence: 99%

Exploring the effect of market risks on bank profitability: Evidence from Jordan

Al-Rdaydeh

Hamouri

Rahman

et al. 2022

Banks and Bank Systems

Self Cite

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“…The nature of the work of Commercial banks requires that participation in profit and loss and bearing risks be one of the methods of financing and investment in Commercial banks, by investing in real productive projects based on speculation and participation, in which Commercial financing is granted after ensuring the financial solvency of the client and the investment feasibility of the project in Production and Profits (Khalaf, 2006). Al-Rdaydeh et al (2019) added that last four decades witnessed the emergence of Commercial finance that enables companies to acquire bank financing from different types of commercial banks (commercial and Commercial banks). Today, banks worldwide typically practice a dual banking system (commercial and Commercial).…”

Section: Introductionmentioning

confidence: 99%

Commercial Banks' Contribution to Expanded Investment and Credit in Jordan

Dabbas

2023

J. Professional Business Review

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Purpose: The study aimed to investigate the role of commercial banks in increasing investment and credit facilities in Jordan. Theoretical framework: The theoretical literature in this study sheds a light on the role of the commercial banks in in increasing investment and credit facilities. It also sheds a light on the role of commercial banks in supporting economy. Design/methodology/approach: The researchers adopted a descriptive analytical and quantitative approaches. The study’s sample includes all the commercial banks in Jordan. The researcher collected data on commercial banks from reports issued by the Central Bank of Jordan. The sampled banks include: (Bank of Jordan, Arab Bank, Capital Bank and Etihad Bank). The data targets the period (2017-2020). Findings: The researcher found that there is an important role for Commercial banks in investment in general, due to an increasing the financial indicators of Commercial banks related to investment during the years (2017-2020). The study reported that the value of Commercial banks credit facilities increased significantly during .The comparison period (2017-2020) Research, Practical & Social implications: The present study provides information and review of literature for the ones interested in conducting studies about the impact of commercial banks on economic variables. It also provides the decision makers in the Jordanian Ministry of Finance with useful information for supporting and improving investment in Jordan. Originality/value: The present study is significant because it is the first study that addresses the role of commercial banks in increasing investment and credit facilities in Jordan as far as the researcher knows.

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Bank Financing and Firm Growth: The Role of Islamic Bank Financing

Cited by 2 publications

References 47 publications

Exploring the effect of market risks on bank profitability: Evidence from Jordan

Exploring the effect of market risks on bank profitability: Evidence from Jordan

Commercial Banks' Contribution to Expanded Investment and Credit in Jordan

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