The Impact of Change in Owned Capital and Deposits on the Performance of Banks: An Empirical Study on the Commercial Banking Sector in Jordan

Khalaf Sulieman Al- Taani; Zaher Abdel Fattah Al- Slehat

doi:doi:10.11648/j.jfa.20140202.12

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The Impact of Change in Owned Capital and Deposits on the Performance of Banks: An Empirical Study on the Commercial Banking Sector in Jordan

Khalaf Sulieman Al- Taani, Zaher Abdel Fattah Al- Slehat

Published in Journal of Finance and Accounting (Volume 2, Issue 2)

Received: 12 February 2014 Published: 30 March 2014

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Abstract

This study examines the effects of change in Owned Capital and deposits on performance of Jordanian banks. The study extends empirical work on owned capital of banks within country over the period of twelve years from 2000-2011 by utilizing data of banks listed at Amman Stock Exchange. Multiple regression models are applied to estimate the relationship between owned capital as well as deposits and banking performance. Three performance measures (including return on assets, return on equity, and net income) are used as dependent variable, while owned capital and deposits are used as independent variable. The results indicate that all the performance indicators such as Returns on Assets (ROA), Return on Equity (ROE) and Net Income (NI) are significantly and positively associated with owned capital. Moreover, there is no significant relationship between ROA and deposits. Altogether our study provides evidence that indicates bank performance is positively related to owned capital and deposits.

Published in	Journal of Finance and Accounting (Volume 2, Issue 2)
DOI	10.11648/j.jfa.20140202.12
Page(s)	24-29
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2014. Published by Science Publishing Group

Keywords

Owned Capital, Deposits, Bank performance, Return on Assets, Return on Equity

References

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[2]	Adedipe a (2005), Building and sustaining Corporate performance and Growth in the Nigerian Capital Market.
[3]	Alexandre,A.N and fabiano, G.(2004): “ The End of Monetary Restatement and its Impact on Profitability and in the Capital Adequacy of Banks in Brazil” www.institutoassaf.com
[4]	Apilado.V.and Gies T.(1976):”capital Adequacy and Commercial Bank Failure in Bank Capital”, published by Van Nostrand Renhold company, New York.
[5]	Arogundade, A.O (1999), “ Capital Adequacy and Capital Issues”, focus on Nigeria, July-Dec.
[6]	Bank for International Settlements (1988), “The Basel Agreement, June
[7]	Basel Committee on Banking Supervision (2005), The Application of Basel II to Trading Activities and Treatment of Double Default Effects, Bank for International Settlements press, Communications, Switzerland, July.
[8]	Crosse, H.D and Hamsel, G.H (1980), Management Policies for Commercial Banks, Bankers Publishing Company, boston
[9]	Geruning, H.V and Bratanovic S. (1999), “Analyzing Banking Risk”, Maxwell publishing House.
[10]	Jerry L.J (1995),” Regulation and the Future of banking , Economic Commentary, federal Reserve Bank of Cleceland, August.
[11]	Kidwell, D.S et al (2000), “Financial Institutions, Markets and Money”, The Dryden press, Harcourt College Publishers.
[12]	Klise, E.S (1972), Money and Banking, South western Publishing Co. Cincinnati, ohio, fifth Editon.
[13]	Manuake, T.(2006), “The New Face of Banking”, TELL Magazine, Lagos, Junuary .
[14]	Mathuva, D.M (2009), “ Capital Adequcy, cost-income Ratio and the performance of Commercial banks, The Kenyan Scenario” , The International Journal of applied Economics and finance, 3(2), 35-47.
[15]	Rose, P.S (1999), “Commercial Bank Management”, Irwin McGraw-Hill, 4th Edition.

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APA Style

Khalaf Sulieman Al- Taani, Zaher Abdel Fattah Al- Slehat. (2014). The Impact of Change in Owned Capital and Deposits on the Performance of Banks: An Empirical Study on the Commercial Banking Sector in Jordan. Journal of Finance and Accounting, 2(2), 24-29. https://doi.org/10.11648/j.jfa.20140202.12

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ACS Style

Khalaf Sulieman Al- Taani; Zaher Abdel Fattah Al- Slehat. The Impact of Change in Owned Capital and Deposits on the Performance of Banks: An Empirical Study on the Commercial Banking Sector in Jordan. J. Finance Account. 2014, 2(2), 24-29. doi: 10.11648/j.jfa.20140202.12

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AMA Style

Khalaf Sulieman Al- Taani, Zaher Abdel Fattah Al- Slehat. The Impact of Change in Owned Capital and Deposits on the Performance of Banks: An Empirical Study on the Commercial Banking Sector in Jordan. J Finance Account. 2014;2(2):24-29. doi: 10.11648/j.jfa.20140202.12

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@article{10.11648/j.jfa.20140202.12,
  author = {Khalaf Sulieman Al- Taani and Zaher Abdel Fattah Al- Slehat},
  title = {The Impact of Change in Owned Capital and Deposits on the Performance of Banks: An Empirical Study on the Commercial Banking Sector in Jordan},
  journal = {Journal of Finance and Accounting},
  volume = {2},
  number = {2},
  pages = {24-29},
  doi = {10.11648/j.jfa.20140202.12},
  url = {https://doi.org/10.11648/j.jfa.20140202.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20140202.12},
  abstract = {This study examines the effects of change in Owned Capital and deposits on performance of Jordanian banks. The study extends empirical work on owned capital of banks within country over the period of twelve years from 2000-2011 by utilizing data of banks listed at Amman Stock Exchange. Multiple regression models are applied to estimate the relationship between owned capital as well as deposits and banking performance. Three performance measures (including return on assets, return on equity, and net income) are used as dependent variable, while owned capital and deposits are used as independent variable. The results indicate that all the performance indicators such as Returns on Assets (ROA), Return on Equity (ROE) and Net Income (NI) are significantly and positively associated with owned capital. Moreover, there is no significant relationship between ROA and deposits. Altogether our study provides evidence that indicates bank performance is positively related to owned capital and deposits.},
 year = {2014}
}

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TY  - JOUR
T1  - The Impact of Change in Owned Capital and Deposits on the Performance of Banks: An Empirical Study on the Commercial Banking Sector in Jordan
AU  - Khalaf Sulieman Al- Taani
AU  - Zaher Abdel Fattah Al- Slehat
Y1  - 2014/03/30
PY  - 2014
N1  - https://doi.org/10.11648/j.jfa.20140202.12
DO  - 10.11648/j.jfa.20140202.12
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 24
EP  - 29
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20140202.12
AB  - This study examines the effects of change in Owned Capital and deposits on performance of Jordanian banks. The study extends empirical work on owned capital of banks within country over the period of twelve years from 2000-2011 by utilizing data of banks listed at Amman Stock Exchange. Multiple regression models are applied to estimate the relationship between owned capital as well as deposits and banking performance. Three performance measures (including return on assets, return on equity, and net income) are used as dependent variable, while owned capital and deposits are used as independent variable. The results indicate that all the performance indicators such as Returns on Assets (ROA), Return on Equity (ROE) and Net Income (NI) are significantly and positively associated with owned capital. Moreover, there is no significant relationship between ROA and deposits. Altogether our study provides evidence that indicates bank performance is positively related to owned capital and deposits.
VL  - 2
IS  - 2
ER  -

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Author Information

Khalaf Sulieman Al- Taani

Department of Finance & Banking, Faculty of Finance & Administrative Sciences, Irbid National University, Jordan
Zaher Abdel Fattah Al- Slehat

Department of Finance & Banking, Faculty of Finance & Administrative Sciences, Irbid National University, Jordan

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Plain Text BibTeX RIS

APA Style

Khalaf Sulieman Al- Taani, Zaher Abdel Fattah Al- Slehat. (2014). The Impact of Change in Owned Capital and Deposits on the Performance of Banks: An Empirical Study on the Commercial Banking Sector in Jordan. Journal of Finance and Accounting, 2(2), 24-29. https://doi.org/10.11648/j.jfa.20140202.12

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ACS Style

Khalaf Sulieman Al- Taani; Zaher Abdel Fattah Al- Slehat. The Impact of Change in Owned Capital and Deposits on the Performance of Banks: An Empirical Study on the Commercial Banking Sector in Jordan. J. Finance Account. 2014, 2(2), 24-29. doi: 10.11648/j.jfa.20140202.12

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AMA Style

Khalaf Sulieman Al- Taani, Zaher Abdel Fattah Al- Slehat. The Impact of Change in Owned Capital and Deposits on the Performance of Banks: An Empirical Study on the Commercial Banking Sector in Jordan. J Finance Account. 2014;2(2):24-29. doi: 10.11648/j.jfa.20140202.12

Copy | Download

@article{10.11648/j.jfa.20140202.12,
  author = {Khalaf Sulieman Al- Taani and Zaher Abdel Fattah Al- Slehat},
  title = {The Impact of Change in Owned Capital and Deposits on the Performance of Banks: An Empirical Study on the Commercial Banking Sector in Jordan},
  journal = {Journal of Finance and Accounting},
  volume = {2},
  number = {2},
  pages = {24-29},
  doi = {10.11648/j.jfa.20140202.12},
  url = {https://doi.org/10.11648/j.jfa.20140202.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20140202.12},
  abstract = {This study examines the effects of change in Owned Capital and deposits on performance of Jordanian banks. The study extends empirical work on owned capital of banks within country over the period of twelve years from 2000-2011 by utilizing data of banks listed at Amman Stock Exchange. Multiple regression models are applied to estimate the relationship between owned capital as well as deposits and banking performance. Three performance measures (including return on assets, return on equity, and net income) are used as dependent variable, while owned capital and deposits are used as independent variable. The results indicate that all the performance indicators such as Returns on Assets (ROA), Return on Equity (ROE) and Net Income (NI) are significantly and positively associated with owned capital. Moreover, there is no significant relationship between ROA and deposits. Altogether our study provides evidence that indicates bank performance is positively related to owned capital and deposits.},
 year = {2014}
}

Copy | Download

TY  - JOUR
T1  - The Impact of Change in Owned Capital and Deposits on the Performance of Banks: An Empirical Study on the Commercial Banking Sector in Jordan
AU  - Khalaf Sulieman Al- Taani
AU  - Zaher Abdel Fattah Al- Slehat
Y1  - 2014/03/30
PY  - 2014
N1  - https://doi.org/10.11648/j.jfa.20140202.12
DO  - 10.11648/j.jfa.20140202.12
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 24
EP  - 29
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20140202.12
AB  - This study examines the effects of change in Owned Capital and deposits on performance of Jordanian banks. The study extends empirical work on owned capital of banks within country over the period of twelve years from 2000-2011 by utilizing data of banks listed at Amman Stock Exchange. Multiple regression models are applied to estimate the relationship between owned capital as well as deposits and banking performance. Three performance measures (including return on assets, return on equity, and net income) are used as dependent variable, while owned capital and deposits are used as independent variable. The results indicate that all the performance indicators such as Returns on Assets (ROA), Return on Equity (ROE) and Net Income (NI) are significantly and positively associated with owned capital. Moreover, there is no significant relationship between ROA and deposits. Altogether our study provides evidence that indicates bank performance is positively related to owned capital and deposits.
VL  - 2
IS  - 2
ER  -

Copy | Download