The efficiency of the evaluation of jordanian banks, estimate with the help by using correlation and regression analysis

Altayawe Fathi
postgraduate of the Chair of Banking, Odessa National Economic University, e-mail:rln@ukr.net

Cite this article:

Altayawe, F.(2016). The efficiency of the evaluation of jordanian banks, estimate with the help by using correlation and regression analysis. Ed.: М.D. Baldzhy (ed.-in-ch.) and others [Systema pensiinoho zabezpechennia Ukrainy ta yevrointehratsiini protsesy; za red.: М. D. Baldzhy (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 4(236), pp. 5–14.

Abstract

The article is devoted to evaluating the efficiency of the modern Jordanian banks which went on a credit basis of its operation by means of correlation and regression analysis. Correlation and regression analysis of values of such generalizing productive indicators of banks' activities as the profitability of their assets - ROA (Return On Assets, literally asset turnover) and return on equity - ROE (Return On Equity, literally turnover of capital) was carried out in the work. The analysis showed that Jordanian banks are successfully operating in the credit market, as the values of such generalizing productive indicators of banks' activities - the efficiency of the use of assets (ROA) and the efficient use of capital (ROE), even during the crisis of 2008-2009 were not lower than the generally accepted in the world practice cost-effective level. In addition, since 2011, the dynamics of these indicators has steadily increased, which contributes greatly to the increase in the volume of exactly credit operations (deposit and lending), which determine the efficiency of the use of assets and capital of studied Jordanian banks.

Keywords

the efficiency of evaluating, summarize of performance indicators of banks – ROA and ROE, regression models, factorial indicators, productivity indicators.

JEL classification: R400

UD classification: 519.233.5:336.71

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