Open AccessNoninterest Income and Financial Performance at Jordanian Banks
Author(s) -
Alaaeddin Al-Tarawneh,
Bashar K. Abu Khalaf,
Ghazi Al Assaf
Publication year - 2016
Publication title -
international journal of financial research
Language(s) - English
Resource type - Journals
eISSN - 1923-4031
pISSN - 1923-4023
DOI - 10.5430/ijfr.v8n1p166
Subject(s) - profitability index , net interest income , capital adequacy ratio , financial system , business , equity (law) , monetary economics , economics , finance , interest rate , profit (economics) , political science , microeconomics , law
This paper investigated the impact of noninterest income on the performance of 13 banks in Jordan during the period 2000-2015. The impact of size of bank, loans, capital adequacy and general expenses on banks performance found to have a significant impact on banks performance. In more details, general expenses decrease bank performance, while capital adequacy, loans and size increase it. In addition, non-interest income increases equity capital adequacy and this in turn affects the profitability positively.