السيولة و أثرها على أسعار أسهم البنوك خلال جائحة كورونا

Abstract EN

Coronavirus (COVID-19) pandemic has struck my country and the whole world, affected the global economies greatly, and Jordan had a share of that.

Many economic sectors and individuals were affected; Amman Stock Exchange was also affected.

To overcome this crisis, the Central Bank implemented a range of facilities to improve liquidity in financial markets by easing restrictions on the use of reserves and supporting credit facilities.

In light of these circumstances, this study examines the extent to which the shares of banks listed on Amman Stock Exchange were affected by the liquid facilities announced by Central Bank of Jordan and supporting banks to expand the granting of credit and on concessional terms.

The study sample consisted of fourteen banks whose shares are listed on the stock exchange, and they represent all listed banks except for one bank that was excluded from the study as a result of suspending trading its shares for several periods.

In order to achieve its objectives, the study took two periods for the purposes of comparison, during the Corona period: the first before the Central Bank announced procedures to support liquidity, and the second period after the announcement of liquidity support, and thus the study extended for the period 2019 and 2020.

By analyzing the standard deviation of stock prices for the two periods, the study found a decrease in the standard deviation of most banks after the decisions of the Central Bank to facilitate liquidity, which indicates the existence of an impact of liquidity in the market on the share prices of banks listed on Amman Stock Exchange.

Despite the decline in share prices - which resulted from investor concern due to Corona pandemic- the intervention of the Central Bank had an impact on controlling investor concerns, calming markets, and mitigating the negative effects of this pandemic.