Determinants of the Demand for Credit Facilities: Evidence from the Banking Sector in Jordan for the Period 2012-2021

• 영문명: Determinants of the Demand for Credit Facilities: Evidence from the Banking Sector in Jordan for the Period 2012-2021
• 발행기관: 한국유통과학회
• 저자명: Salah Turki ALRAWASHDEH Ahmad Mahmoud ABKAL Ali Abdelh Fattah ZYADAT
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 10 No.1, 181~187쪽, 전체 7쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2023.01.31

영문 초록

The study aimed to study the effect of the inflation rate, the real domestic product, the interbank lending interest rate, and the total deposits on credit facilities in Jordan for 2012−2021 through quarterly data. The study adopted the ARDL model. The study used the time series analysis method, as the study tests the stationarity of the time series. The results showed that the impact of inflation on the total credit facilities was negative. In contrast, the impact of each of the total deposits, real GDP, and the interest rate of interbank loans on the total credit facilities was positive and significant. The study recommended the need for the banking sector in Jordan to develop risk management mechanisms in a way that allows it to adapt to economic cycles and crises by conducting stress tests and developing scenarios that ensure the formation of sufficient provisions to meet emergencies. The study also recommended that the macroeconomic policy should be based on creating a stable macroeconomic environment that allows the efficient employment of resources in all economic sectors in a way that achieves high economic growth rates, which contributes to the promotion of economic recovery and is reflected in income. Hence, individuals have a greater ability to repay loans.

목차

1. Introduction

2. Literature Review

3. Research Methods

4. Results

5. Discussion

6. Conclusion and Recommendations

References

키워드

Credit Facilities Interbank Lending Interest Rate Total Deposits Real GDP