تحليل تنافسية المصارف التجارية الأردنية للفترة 2000-2009

Abstract EN

The purpose of this study analyzes the competitiveness of commercial banks operating in Jordan and, in particular, assesses the capacity of local banks in meeting competitive challenges of foreign banks operating in Jordan .

In addition, it identifies key determinants in competitiveness.

The study used "Panzar- Rosse: H-statistic" measure to assess bank competitiveness along with "Pooled and Panel data analysis" by using the fixed effect and random effect models and the ordinary least squares (OLS) method.

The study includes 19 commercial banks including (including 6 foreign banks) during the period (2000-2009).

The findings revealed that all banks operating in Jordan were subject to monopolistic competitive conditions and that foreign banks were posing a competitive threat to local banks as their profitability was better and that the factors affecting competitiveness were different from those in local banks.

The study made recommendations to reduce overall operating costs for local banks, particularly financing costs and to draft appropriate policies for better controlling costs and improving profitability, raising quality of service and attracting larger deposits as a means for enhancing overall profitability.