Determinants of the Size of Financing in Islamic Banks Operating in Jordan

Authors

Nadia Youssef, Yarmouk University,JordanFollow
Emad Barakat, Yarmouk University, JordanFollow

Abstract

The study aims to test the main determinants of the size of Islamic banking finance in Jordan and its impact on it using data from a sample of Islamic banks operating in Jordan for the period from 2006 to 2015. The relationship between the size of Islamic banking finance and some main determinants such as (pricing of finance, size of deposits, bank size, liquidity, cash required reserve, economic growth rate, financing risks) has been tested. The results of the study indicate that there is a statistically significant effect for each of the deposits size, economic growth and required reserve, while pricing, liquidity, bank size and financing risks do not affect the size of Islamic banking finance in Jordan for the study period. The study recommended the need to pay attention to and follow the behavior of these related determinants because of their impact on the size of Islamic banking finance and therefore on the profitability of Islamic banks

Recommended Citation

Youssef, Nadia and Barakat, Emad (2018) "Determinants of the Size of Financing in Islamic Banks Operating in Jordan," Jerash for Research and Studies Journal مجلة جرش للبحوث والدراسات: Vol. 19: Iss. 2, Article 2.
Available at: https://digitalcommons.aaru.edu.jo/jpu/vol19/iss2/2