أثر التنويع في محافظ القروض على عائد البنوك : دراسة حالة البنوك التجارية الأردنية

Abstract EN

This study aims at investigating the effect of diversification in Jordanian banks’ loan portfolio on the banks’ return during the period from 2000 to 2011 using a sample of 13 conventional Jordanian commercial banks.

The researchers study diversification on the banks’ loan portfolio according to economic sectors, disaggregate of financial sectors and disaggregate of forms of loans.

The study found a negative effect of diversification in banks’ loan portfolio in banks’ return.

We also test the consistency of Jordanian banks’ loan portfolio with portfolio theory; the study found that Jordanian banks’ loan portfolio is inconsistent with portfolio theory and found a negative relationship between Jordanian banks’ return and risk