Abstract

This study aims to analyze the impact of the resources gap on the interest margin in the Jordanian Commercial Banks. Since the interest margin is the main source of profit in commercial banks, the existence of a gap have a negative impact on the interest margin. In addition, as the change in sensitive assets to interest rate and sensitive liabilities of interest rate has an impact on the bank's profits; especially when the commercial banks pay the costs of some sources of funds to increase what they get from the benefits derived from credit facilities of credit interest and the debt interest. This is all embarked upon within a sample that included eight Jordanian commercial banks (out of thirteen are banks in Jordan)..The analysis relies on the annual data for banks to identify the resource gap in the Jordanian commercial banks, their impact on the interest margin and sensitive assets, sensitive reductions. The result of this study aim to provide Jordanian banks with up-to-date feedback which can help in advancing the Jordanian banking sector. The study used methods of econometrics where the Simple Linear Regression model is used. The study shows the existence of statistically significant effect of the resources gap in the Jordanian commercial banks on the interest margin. And it also shows the existence of statistically significant effect for the resources gap in the Jordanian commercial banks on the debt interest. Finally, the study shows the existence of statistically significant effect for the resources gap in the Jordanian commercial banks on the payable interest.