Impact of Liquidity Rules on Shareholders’ Returns in Jordan Islamic Bank

Abdullah Ibrahim Nazal and Fuad Al-Fasfus

International Journal of Business and Management, 2018, vol. 13, issue 6, 225

Abstract: This paper aims to explore the impact of liquidity increases by local and international roles on shareholders’ returns in the Jordan Islamic Bank as case study. The study methodology based on financial tables annual reports of the bank from (2009-2016) in order to analysis asset liquidity risk standard and its affection on managing balance sheet, and analysis returns for common shareholders in the Bank also discuss the result of shares return reducing. The real impact is deferent because the market price of the Jordan Islamic Bank shares is not affected negatively by the rule. Its price in the market is more than the share value by the ratio (all equities/ all shares). The percentage between the market price and ratio was equal to 202% in 2014 and reduced to 155% in 2016. By discussion, the ratio there is a gap of equities impact as a result of applying depreciation on fixed assets yearly, regardless of its growth by market price. Fair result is to increase equities based on fixed assets market price increasing. This paper contributed to the knowledge by different ways, it helps leaders and managers to find the real impact of managing liquidity risk in the Islamic Bank by the Central Bank and Basel Committee.

Date: 2018
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