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Jordan Journal of Islamic Studies

Jordan Journal of Islamic Studies

Abstract

This study point out the relationship between both sides of Islamic Banks balance sheets, Liabilities and Equity side, where Deposits are the most important Sourse of money for the banks, and the Assets on the other side from the statement, where it presents the uses of these funds.

The study aimed to show the impact of Total Deposits (Credit and Investment) on the Return on Assets)ROA(for the Jordanian Islamic Banks during the period (2012-2016). The total Deposits was chosen as an independent variable to study its impact on the dependent variable: (Return on Asset). The sample of study included two banks: Jordan Islamic Bank and International Islamic Arab Bank.

The study concluded that there is a significant effect for the total deposits on the Return On Assets in the Jordanian Islamic Banks, which indicates the nature of the positive relationship between the sources of funds (Deposits) and its uses in the assets side.

The study recommended the necessity of bank management's to interest on the financing and investment modes in Sourses and Uses of money statement. Also works on listing all kind of deposits in special footnotes in the financial report.

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