Abstract

This study aimed to investigate the impact of bank traits variables on the liquidity hazard in Jordanian commercial banks. It used a panel data model to analyze the impact of core bank factors like profitability, capital, credit, size, and management quality on liquidity risk for thirteen Jordanian commercial banks while controlling for the regulatory and macroeconomic environment. The research motivation by the relatively large size of Jordan's commercial banks compared to other economic sectors and the unrest in the Middle East and North Africa region. The econometric results demonstrate that liquidity risk is negatively impacted by efficient management, while profitability positively impacts it. Finally, because of the interplay between the various elements, the influence of capital and credit on liquidity risk was ambiguous. The range of commercial banks' operations in Jordan, which include financing the nation's economic sectors through their function as financial intermediaries, underlines how crucial it is to protect them against liquidity threats.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.