The profitability of the banking sector in the Hashemite Kingdome of Jordan (2008 - 1999)

This research paper develops an suitable econometric model whereby the primary determinants of profitability of the commercial banks in Jordan. To achieve this purpose, an econometric model based on internal aspects of the banking organizations as they related to their return on assets and their return on equity, also an external aspects of the environment in which they insert as measured by growth in GDP was developed based on guidance provided by economists and industry experts. A critical analysis of the related peer-reviewed, academic and organizational literature is followed by an analysis of the statistical data for these banks. The paper includes several graphs, tables, and charts.