IDEAS home Printed from https://ideas.repec.org/a/aac/ijirss/v8y2025i2p1565-1572id5514.html
   My bibliography  Save this article

External determinants of profitability of Jordanian Islamic and traditional banks

Author

Listed:
  • Kholood Ahmed Tanash
  • Abdalla Mohammad Al Badarin
  • Hamza Ahmed Tanash

Abstract

This article aims to examine the external factors that impact the profitability of Jordanian Islamic and traditional banks. This paper was applied to all Jordanian banks: 3 Islamic banks and 12 traditional banks. The study was based on annual panel data for the years from 2011 to 2023. Data were collected from the annual reports of banks, reports of the Association of Banks in Jordan, and reports of the Central Bank of Jordan. The study used many determinants that affect profitability: ROA, Concentration Ratio (CR), Market Share (MR), gross domestic product (GDP), growth rate (GR), consumer price index (inflation) (CPI), and money supply (M2). The data were analyzed using a model of the effects of randomness. The paper found that Market Share (MR) and money supply (M2) have a positive impact on the profitability of Jordanian banks. It turned out that the Concentration Ratio (CR) and the consumer price index (CPI) have a negative impact on the profitability of Jordanian banks. It was also pointed out that gross domestic product (GDP) and growth rate (GR) have no impact on the profitability of Jordanian banks. The study recommends that Jordanian Islamic banks continuously monitor the development of their profits, as it affects their continuity and ability to compete. There is a need for Jordanian Islamic banks to explore new investment areas to exploit the volume of deposits available to them to increase profits.

Suggested Citation

  • Kholood Ahmed Tanash & Abdalla Mohammad Al Badarin & Hamza Ahmed Tanash, 2025. "External determinants of profitability of Jordanian Islamic and traditional banks," International Journal of Innovative Research and Scientific Studies, Innovative Research Publishing, vol. 8(2), pages 1565-1572.
    • Handle: RePEc:aac:ijirss:v:8:y:2025:i:2:p:1565-1572:id:5514
    as

    Download full text from publisher

    File URL: https://ijirss.com/index.php/ijirss/article/view/5514/956
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aac:ijirss:v:8:y:2025:i:2:p:1565-1572:id:5514. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Natalie Jean (email available below). General contact details of provider: https://ijirss.com/index.php/ijirss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.