Evaluation of Financial Performance of Islamic Banks in Jordan (2001-2010) ¡°A Comparative Study¡±

Rana M. Airout and Rula M. Airout

International Journal of Economics and Finance, 2017, vol. 9, issue 9, 166-174

Abstract: The purpose of this research is to evaluate the financial performance of two of the oldest banks in Jordan, Jordan Islamic Bank and Arab Islamic International Bank. The study population consists of the Islamic banks operating in Jordan. The Islamic Bank of Jordan and the Arab Islamic Bank were selected to compare the two banks from different aspects of the study, based on the data of the two banks during the period from 2001 to 2010. This research intended to investigate the following hypotheses: 1) There are no statistically significant differences in the performance of the Islamic Bank of Jordan and the Arab Islamic International Bank through profit indicators. 2) There are no significant differences in the performance of the Islamic Bank of Jordan and the Arab Islamic International Bank through liquidity indicators. 3) There are no significant differences in the performance of the Islamic Bank of Jordan and the Arab Islamic International Bank through indicators of indebtedness. 4) There are no significant differences in the performance of the Islamic Bank of Jordan and the Arab Islamic International Bank through indicators of activity. Both descriptive and inferential statistical analysis and results were as follows: The study found that there are no significant differences between the performance of the Arab Islamic Bank and the Jordanian Islamic Bank in the field of profitability, and no statistically significant differences in the field of liquidity, except for the percentage of total deposits / assets where the mean of this ratio to the Islamic Bank of Jordan was (87.55%) compared with Arab Islamic Bank where it was (60.78%), we conclude from that the Jordan Islamic Bank has the ability to meet short-term liabilities when due through its short-term assets more than Arab Islamic Bank. And there are statistical significance differences in the area of indebtedness.

Keywords: Islamic banks; financial performance; profit indicators; liquidity indicators; indebtedness indicators; activity indicators (search for similar items in EconPapers)
Date: 2017
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://ccsenet.org/journal/index.php/ijef/article/view/70179/38238 (application/pdf)
http://ccsenet.org/journal/index.php/ijef/article/view/70179 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ibn:ijefaa:v:9:y:2017:i:9:p:166-174

Access Statistics for this article

More articles in International Journal of Economics and Finance from Canadian Center of Science and Education Contact information at EDIRC.
Bibliographic data for series maintained by Canadian Center of Science and Education ().