Search Results for jordanian-commercial-banks

Abstract

The current study examines the impact of income diversification on the profitability and stability of Jordanian commercial banks. The study sample consisted of (13) commercial banks operating in Jordan for the period 2010-2022. The secondary data included in the financial reports and annual budgets issued by the Jordanian commercial banks are also considered. The study employs the ratio of non-interest income to total operating income and the Hirschman-Herfindahl index to measure income diversification, while the return on assets and return on equity indices were used to measure bank profitability. To measure financial stability, the z-score value was calculated. The Panel Data regression model was employed, and the random effect model was chosen to test the study hypotheses. The results showed that the ratio of non-interest income has a positive and significant impact on the profitability of Jordanian commercial banks. This indicates that increasing reliance on non-interest income sources enhances the performance and profitability of Jordanian commercial banks. The results also showed that the HHI index has a positive and significant effect on the profitability and stability of Jordanian commercial banks, which means that increasing the level of diversification in income sources leads to increased profitability and financial stability in Jordanian commercial banks. The study recommended the necessity of encouraging commercial banks to innovate financially and provide digital banking services and other non-traditional services due to their role in increasing profits and financial stability in Jordanian commercial banks.

Abstract

This study primarily aims to investigate the effect of strategic control on achieving advanced levels of strategic success, with a focus on exploring the degree of strategic control implementation in the Jordanian banking sector. Furthermore, this study intends to provide a comprehensive vision encompassing the key factors that contribute to achieving strategic objectives, in order to address the emerging challenges in the banking business environment. The study population consisted of all Jordanian commercial banks registered with the Association of Banks in Jordan, numbering (12) banks for the year 2025. To achieve the study objectives, data were collected using a questionnaire specifically designed for this purpose. A total of (244) questionnaires were distributed to employees in Jordanian commercial banks, including both general staff and senior management personnel such as managers, deputy managers, assistant managers, and department heads. Of these, (191) questionnaires were returned, with (184) deemed valid for analysis. For the purpose of data analysis and hypothesis testing, the Statistical Package for the Social Sciences (SPSS.V.23) was utilized.

This study concluded with several key findings, the most important of which was the presence of a positive and significant effect of strategic control on achieving strategic success in Jordanian commercial banks. Additionally, the study results demonstrated a high degree of strategic control implementation in Jordanian commercial banks from the perspective of their employees.

      Based on these findings, the study recommends that the relevant departments in Jordanian commercial banks prioritize strategic control as an essential tool for predicting risks and identifying improvement opportunities by enhancing internal and external monitoring mechanisms to ensure long-term performance sustainability and strategic success.