2022_The Impact of Deregulation and Economic Crises on Efficiency and Productivity Growth of The Banking Sector in Jordan

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date 2022-12-14
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spelling 15856 https://intelek.unisza.edu.my/intelek/pages/view.php?ref=15856 https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection3 General Document Malaysia Library Staff (Top Management) Library Staff (Management) Library Staff (Support) Terengganu Faculty of Business and Management English application/pdf 1.5 Server storage Scanned document Universiti Sultan Zainal Abidin UniSZA Private Access Universiti Sultan Zainal Abidin SAMBox 2.4.24; modified using iTextSharp™ 5.5.10 ©2000-2016 iText Group NV (AGPL-version) Copyright©PWB2025 252 2022-12-14 15856_7e540b4a735e84d.pdf Sameer A A Al Zoughool Impact Of Deregulation Economic Crises Efficiency And Productivity Growth Of The Banking Sector Banks and banking—Jordan Deregulation Financial crises—Jordan Bank productivity Economic policy 2022_The Impact of Deregulation and Economic Crises on Efficiency and Productivity Growth of The Banking Sector in Jordan Over the past two decades, several countries across the globe have deregulated their financial services to improve the productivity and efficiency levels of their financial institutions. Furthermore, rising competition in the dynamic financial market has increased pressure on Jordanian financial institutions. The success of Jordan’s financial institutions is largely dependent on their ability to adapt to a dynamic economic environment that enhances operational efficiency. Moreover, the Jordanian government has made efforts to modernize its banking and financial systems in order to enhance the profitability, efficiency, and productivity of the banking sector at both national and international levels. Hence, this study aimed at to examine the effect of deregulation and economic crises on the efficiency and productivity of Jordanian banking sector rom 1999-2018 period. This study’s target population comprised 24 commercial Jordanian banks. A sample of 15 banks was chosen from the target population for an analysis based on the decided criteria. Data of these banks from 1999 to 2018 were obtained from the banks’ publicly available annual reports, due to their broader acceptability and reliability by the stakeholders. This period of study (1999 to 2018) was selected based on its suitability for achieving the objectives of the study. Among the selected samples, data of eleven banks were used for the final analysis. The Data Envelopment Analysis (DEA) method as a part of non-parametric approach was adopted to measure the banks’ technical efficiency based on the intermediation approach. The efficiency was measured in terms of technical, pure technical and scale efficiencies. In addition, Malmquist productivity index (MPI) was used to check for any productivity change within the said time period. Findings of this study show that medium-sized banks, such as Arab Jordan Investment Bank (AJIB) and Arab Banking Corporation (ABC) in Jordan are the most technically efficient, whereas large banks, such as Housing Bank of Trade and Finance (HBTF) and Arab Bank (AB) are the least efficient. Findings also indicate enhancement in the technical efficiency of medium-sized banks observed during the period of this study (1999 to 2018). The Jordanian banking sector also revealed periodic growth in productivity every year, which can be primarily attributed to regular technological advancement. This study has contributed to the existing corpus of knowledge related to banking operations in Jordan through changes to deregulation policies over the past two decades. It also suggested that policy makers should direct their efforts toward restructuring the banking sector and helping large banks to use technological advancements to improve their productivity and operational efficiency. These changes are quite crucial for the overall growth of the Jordanian banking industry because the operational undertaking of large banks is more challenging in comparison to mediumsized banks. Dissertations, Academic Sila masukkan subject wajib Dissertations, Academic. Terima kasih... Thesis
spellingShingle 2022_The Impact of Deregulation and Economic Crises on Efficiency and Productivity Growth of The Banking Sector in Jordan
state Terengganu
subject Banks and banking—Jordan
Deregulation
Financial crises—Jordan
Bank productivity
Economic policy
Dissertations, Academic
summary Over the past two decades, several countries across the globe have deregulated their financial services to improve the productivity and efficiency levels of their financial institutions. Furthermore, rising competition in the dynamic financial market has increased pressure on Jordanian financial institutions. The success of Jordan’s financial institutions is largely dependent on their ability to adapt to a dynamic economic environment that enhances operational efficiency. Moreover, the Jordanian government has made efforts to modernize its banking and financial systems in order to enhance the profitability, efficiency, and productivity of the banking sector at both national and international levels. Hence, this study aimed at to examine the effect of deregulation and economic crises on the efficiency and productivity of Jordanian banking sector rom 1999-2018 period. This study’s target population comprised 24 commercial Jordanian banks. A sample of 15 banks was chosen from the target population for an analysis based on the decided criteria. Data of these banks from 1999 to 2018 were obtained from the banks’ publicly available annual reports, due to their broader acceptability and reliability by the stakeholders. This period of study (1999 to 2018) was selected based on its suitability for achieving the objectives of the study. Among the selected samples, data of eleven banks were used for the final analysis. The Data Envelopment Analysis (DEA) method as a part of non-parametric approach was adopted to measure the banks’ technical efficiency based on the intermediation approach. The efficiency was measured in terms of technical, pure technical and scale efficiencies. In addition, Malmquist productivity index (MPI) was used to check for any productivity change within the said time period. Findings of this study show that medium-sized banks, such as Arab Jordan Investment Bank (AJIB) and Arab Banking Corporation (ABC) in Jordan are the most technically efficient, whereas large banks, such as Housing Bank of Trade and Finance (HBTF) and Arab Bank (AB) are the least efficient. Findings also indicate enhancement in the technical efficiency of medium-sized banks observed during the period of this study (1999 to 2018). The Jordanian banking sector also revealed periodic growth in productivity every year, which can be primarily attributed to regular technological advancement. This study has contributed to the existing corpus of knowledge related to banking operations in Jordan through changes to deregulation policies over the past two decades. It also suggested that policy makers should direct their efforts toward restructuring the banking sector and helping large banks to use technological advancements to improve their productivity and operational efficiency. These changes are quite crucial for the overall growth of the Jordanian banking industry because the operational undertaking of large banks is more challenging in comparison to mediumsized banks.
title 2022_The Impact of Deregulation and Economic Crises on Efficiency and Productivity Growth of The Banking Sector in Jordan
title_full 2022_The Impact of Deregulation and Economic Crises on Efficiency and Productivity Growth of The Banking Sector in Jordan
title_fullStr 2022_The Impact of Deregulation and Economic Crises on Efficiency and Productivity Growth of The Banking Sector in Jordan
title_full_unstemmed 2022_The Impact of Deregulation and Economic Crises on Efficiency and Productivity Growth of The Banking Sector in Jordan
title_short 2022_The Impact of Deregulation and Economic Crises on Efficiency and Productivity Growth of The Banking Sector in Jordan
title_sort 2022_the impact of deregulation and economic crises on efficiency and productivity growth of the banking sector in jordan