Competition in the Jordanian's Banking Sector

This study investigates the cost of financial intermediation in the banking sector of Jordan over the 2001-2008 period. It assesses to what extent the relatively high and escalating bank interest margins, in this sector, can be attributed to low efficiency or noncompetitive market conditions, controlling for the bank specific and macroeconomic environment factors. Based on a sample consists of all the banks operating in Jordan over the study period, a variety of widely used econometric models are estimated to discern the determinants of net interest margins. The results indicate that the banking sector in Jordan is on a virtuous path as the high and increasing levels of interest margins are derived mainly from increasing efficiency levels and not related to monopolistic or market powers. The results also show that the bank specific variables, mainly the capital adequacy ratio and the loans to total asset ratio are among the factors that reinforce the observed levels of interest margins. Therefore, the policymakers should expand the ongoing deregulation efforts aiming to enhance the levels of operating efficiency and promote the market competitiveness. In particular, new policies should be directed at encouraging market entry and abolishing the legal and regulatory obstacles to competition

The Market Structure-Profit Relationship in the Jordan's Banking Industry

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Assessing the Productivity Change in the Banking Sector of Jordan

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Cost-efficiency and financial and geographical characteristics of banking sectors in the MENA countries

We utilize the translog stochastic frontier model to estimate the cost-efficiency levels for conventional and Islamic, Cooperation Council (GCC) and non-GCC banks in the Middle East and North African (MENA) countries. The estimated cost-efficiency averages around 77% for those MENA banks, but with slight changes in this score for the individual countries. The results also show that the banks in the GCC countries are the most efficient in the region and the efficiency scores for the conventional and Islamic banks are similar. Finally, the recent financial crisis seems to have a slight impact on the observed efficiency scores of those banks. 1 2016 Informa UK Limited, trading as Taylor & Francis Group.Scopu

Evaluating the lending channel of monetary transmission in Qatar

This study uses OLS, fixed effect and random effect models to evaluate the lending channel of the monetary policy transmission in Qatar over the 2000-2013 period. The growth in the loans extended by the Qatari banks is regressed on the current and lagged values of monetary policy stance, bank liquid assets, deposits, GDP and the lagged values of change in bank lending. The results show that bank lending responds positively but insignificantly to changes in the monetary policy stance. In contrast, the results reveal that bank lending responds to changes in the values of cash and due with banks and customer deposits. These results may indicate lack of a lending channel in Qatar though it may concur with the implicit objective of the Qatari monetary policy of changing the structure of banking system assets and liabilities but not on the account of the target credit in the market. Copyright 2017 Inderscience Enterprises Ltd.Scopu

The Turn of the Month Anomaly in Amman Stock Exchange: Evidence and Implications

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