ANALYSIS THE DETERMINANTS OF CREDIT RISK IN JORDANIAN BANKING: AN EMPIRICAL STUDY

Zuhair Al-Abedallat Abedalfattah () and Nasif AL- Shubiri Faris ()
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Zuhair Al-Abedallat Abedalfattah: The World Islamic Sciences University- Jordan, Amman, Jordan
Nasif AL- Shubiri Faris: Amman Arab University –Jordan, Amman, Jordan
Authors registered in the RePEc Author Service: faris nasif ALShubiri

Management Research and Practice, 2013, vol. 5, issue 3, 21-31

Abstract: The study presents the results of an analysis of credit risk factors of the Jordanian banking system. The objective of the empirical analysis is to establish which some factors influence the systematic credit risk of the Jordanian banking loan portfolio The sample consists of a panel of 14 commercial banks that are listed on the Stock Amman Exchange over the period 2006 to 2010. The preceding regression results allow us to shed some lights on the key factors affecting credit risk of Jordanian banking. The findings show that management efficiency, loan loss provision, leverage and loan to deposit ratio have significant influence on credit risk of banking. But not significant the growth rate and size variables on credit risk ,Since hedging is must develop in operations in banking operations, reducing adverse selections and strengthening internal controls are suggested as measures to increase efficiency in mitigating credit risk in banks

Keywords: Hedge Funds; Financial sector; Factors Risk; Loan Portfolio. (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (1)

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