العلاقة بين تركز السوق و أداء البنوك في الأردن : دارسة تطبيقية

Abstract EN

This study examines the relationship between market concentration and performance in the Jordanian banking sector.

While the market concentration is measured by concentration ratio, the bank performance is measured by return on equity (ROE).

The sample includes 13 banks over the period from 1993 to 1999.

Based on the pooled regression model, the results showed a significant relationship between ROE (before and after taxes) and concentration ratio.

In addition, the bank size was the most other important factor that affected the Jordanian banks profitability during the study period.

This study recommends that Jordanian supervisory authorities should formulate certain changes towards a deregulated environment in order to stimulate competition among banks.

On the other hand, Jordanian banks should emphasize on the following issues: Mergers and Aquisitions, Total Quality Management, and Economies of Scale