Commercial Banks' Contribution to Expanded Investment and Credit in Jordan

Abstract

Purpose: The study aimed to investigate the role of commercial banks in increasing investment and credit facilities in Jordan.
 
 Theoretical framework: The theoretical literature in this study sheds a light on the role of the commercial banks in in increasing investment and credit facilities. It also sheds a light on the role of commercial banks in supporting economy.
 
 Design/methodology/approach: The researchers adopted a descriptive analytical and quantitative approaches. The study’s sample includes all the commercial banks in Jordan. The researcher collected data on commercial banks from reports issued by the Central Bank of Jordan. The sampled banks include: (Bank of Jordan, Arab Bank, Capital Bank and Etihad Bank). The data targets the period (2017-2020).
 
 Findings: The researcher found that there is an important role for Commercial banks in investment in general, due to an increasing the financial indicators of Commercial banks related to investment during the years (2017-2020). The study reported that the value of Commercial banks credit facilities increased significantly during .The comparison period (2017-2020)
 
 Research, Practical & Social implications: The present study provides information and review of literature for the ones interested in conducting studies about the impact of commercial banks on economic variables. It also provides the decision makers in the Jordanian Ministry of Finance with useful information for supporting and improving investment in Jordan.
 
 Originality/value: The present study is significant because it is the first study that addresses the role of commercial banks in increasing investment and credit facilities in Jordan as far as the researcher knows.