Roles and Determinants of  Banking Concentration  in Jordanian Commercial Banks Profitability

Dr. Ghazi Abdul Majeed Alrgaibat

Authors

Dr. Ghazi Abdul Majeed Alrgaibat

Keywords:

concentration, deposits, loans, banks, Jordan

Abstract

This study aimed to measure the effect of concentration to achieve the banking goal in each of (deposits and loans) on the profitability of the Jordanian commercial banks, which have been measured by using ratio of profitability (ROE). The study was conducted on Jordanian commercial banks. Also the study covered period between 1993 to 2013. The researcher used in this study descriptive analytical method and used statistical program (E-VIEWS) also data were analyzed by using simple linear regression method to test hypotheses of the study. The results showed that there was no statistically significant effect of the concentration of each of the banking (deposits and loans) on the profitability of commercial banks in Jordan. The study recommended the demand of Jordanian commercial banks to diversify the services provided by them and to rely on efficient and effective management of its reliance on more concentration to get market share.

Downloads

How to Cite

Roles and Determinants of Banking Concentration in Jordanian Commercial Banks Profitability. (2014). Global Journal of Management and Business Research, 14(23), 87-95. https://journalofbusiness.org/index.php/GJMBR/article/view/

Download Citation

References

Awartani Basil (1997) the impact of concentration in commercial banks on economic variables.

Walid Siam, Hosni Khryosh (2002) the factors affecting the profitability of commercial banks in Jordan. 16(2).

Mohammed Mustafa (2002) Mohammed Mustafa.

Nidal Fayoumi, Shirin Awad (2003) Nidal Fayoumi, and Shirin Awad.2003, the relationship between market concentration and the performance of banks in Jordan: An, Journal of Muta for Research and Studies, Volume. 18(4), 241-258.

Azzedine Alcor (2011) Azzedine Alcor.2011, the effect of concentration and market share in the performance of Jordanian commercial banks, Journal of Studies of Administrative Sciences, Volume. 38(2), 399-4.

Abdulkarim Shirin al-Hamdani, Bataineh (2012) The relationship between financial dependence of competition and the economic growth rate in Jordan.

Mohammed Anaswah, Bahaa Awad (2013) the relationship between market structure and profitability of Saudi banks. 14(1), 65-78.

Mishan Aldvera, Salem (2013) the impact of the concentration on the profitability for the Kuwaiti commercial banks for the period (1996-2011) message.

Al-Jarrah (2010) The Market Structure-Profit Relationship in Jordan's Banking Industry. 37(1), 251-261.

F. Mashharawi, Kh, Al-Zu (2009) The Determinants of Banks' Profitability: Evidence from the Jordanian Banking Sector (1992-2006). 5(3), 403-414.

G. Garcia, J. Gustavo (2012) Does market power influence bank profits in Mexico? A study on market power and efficiency. 22(1).

Liz Laderman (2003) Good News on Twelfth District Banking Market Concentration.

Andrew Logan (2004) Banking Concentration In The UK.

M. Mostak Ahamed (2012) Market Concentration and Profitability of Indian Banks: Does Size Matter in the Impact of Bad Loans and Bank Capital?.

Mohildin (2001) on bank market structure and competition in egypt arab economic. 10, 3-35.

Phil Molyneux, William Forbes (1995) Market structure and performance in European banking. 27(2), 155-159. https://doi.org/10.1080/00036849500000018

T. Polius, W. Samuel (2000) banking Efficiency in the Eastern Caribbean Currency Union: an Examination of the Structure-Conduct-Performance Parading and the efficiency Hypothesis.