The Role of the Jordanian Banking Sector in Economic Development
- Abedalfattah Al-abedallat
The aim of this study is to investigate the impact of the Jordanian banking sector on economic development that was measured by the Gross Domestic Product (GDP). It aims to identify the role of the Jordanian banking sector in the support of economic development through the study of the size of the credit facilities offered by banks.
The study relied on descriptive and analytic method, as well as on field study. The population of this study represents the working banks in Jordan, which offers various banking services to the customers. The tool of the study include data of credit facilities, banking deposits for Jordanian banking sector, and gross domestic product that were collected from the annual financial status of Jordanian Central Bank for the period (2000- 2015).
The study found that there is a significant statistical impact of the factors (the deposits of the banking sector, Credit facilities) on Gross Domestic Product (GDP). The study rejected the null hypothesis and accepted the alternative hypothesis for the two hypotheses. Also, the study recommended that the Jordanian banking sector should expand in the granting of credit facilities to all economic sectors.
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