أثر مخاطر الائتمان على ربحية البنوك : دراسة تحليلية على البنوك المرخصة في الأردن

Abstract EN

This study aimed to find out the effect of credit risk on the profitability of licensed banks in Jordan during the period between (2013- 2019).

The risks were measured through the risk of financial default (non-performing loans / total loans) and capital adequacy risks (total regulatory capital / Risk weighted assets), while the profitability of banks was measured through the rate of return on assets (ROA) and the rate of return on equity (ROE).

The results of the study showed that there is an impact of credit risk on bank profitability, Where there was an inverse relationship with statistical significance between credit risk (financial default risk and capital adequacy risk) and ROA, and a direct relationship with statistical significance between credit risk (financial default risk and capital adequacy risk) and ROE.

The study recommended the importance of bank management's reliance on low-risk assets in achieving Appropriate returns such as using the cash reserve balance in financing government projects or buying treasury bills or government bonds that are characterized by low risks and good returns instead of keeping them in the central bank.