ثر السياسة الائتمانية على محفظة القروض في البنوك التجارية الأردنية

Abstract

This study investigate the impact of credit policy on loans portfolio in the Jordanian commercial banks. It was found that there is strong empirical support of a positive relationship between credit policy (Independent Variables) and loans portfolio (dependent variable). Moreover, it contains empirical evidence of more lenient credit standards during boom periods, both in terms of screening of borrows and in collateral requirements. A robust evidence was also found that during upturns, riskier borrowers get bank loans, while collateralized loans decrease.Strong competition among domestic banks or with other foreign banks and financial intermediaries erodes margin as both loan and deposit interest rates get closer to the inter bank rate. To compensate for the fall in profitability, bank managers might increase loan growth at the expense of the (future) quality of their loan portfolio.