Impact of Global Financial Crisis on Banking Sector of India and Jordan

Journal Title: Academic Journal of Economic Studies - Year 2016, Vol 2, Issue 1

Abstract

This study aims to find out the impact of global financial crisis on banking sector in Jordan and India. the descriptive analytical methodology was used. The study population includes all banks in each country (Jordanian and Indian). The study sample consists of seven banks in Jordan and seven banks in India. The study use variables which includes (Bank Share Price, Bank Capital Adequacy, bank Deposit- lending Ratio, Interest Rates, Nonperforming Assets). The study indicated that global financial crisis have a negative effect on share price of Jordanian banks because share price decrease after global financial crisis. The study also indicated that global financial crisis have a negative effect on capital adequacy, Deposit - Lending Ratio, and Non-Performing Assets because all of these variables was increase after global financial crisis. The study reported that global financial crisis have a positive effect on share price of Indian banks because share price increase after global financial crisis. The study also indicated that global financial crisis have a positive effect on capital adequacy because it increase after global financial crisis, but other indicators which includes Deposit - Lending Ratio, and Non-Performing effect negatively by global financial crisis because all of these variables was increase after global financial crisis. The study reported that performance of Jordanian Banks Sector goes in negative trends after global financial crisis such as; Share prices declining and nonperforming assets increasing, also the study reported that performance of Indian Banks Sector goes in negative trends after global financial crisis such as; Non-performing assets increasing and in positive trends after global financial crisis such as share prices increasing. The study recommended that Central Banks have to issue instructions to raise the minimum capital funds of local banks and continue to oblige banks to apply risk management at the macroeconomic level and at the level of the banking system.

Authors and Affiliations

Baaeth Atallah Dalaien

Keywords

Related Articles

Infrastructural Development and Growth of Micro, Small and Medium Scale Enterprises (MSME)

A critical perspective on micro, small and medium scale enterprises is the believe that it contributes to improve social and economic advancement of a nation. However, this critical component in an economy remains underu...

Energy Use and Growth of Manufacturing Sector: Evidence from Turkey

This study investigates the relationship between Energy use and the growth of the Turkish Manufacturing Sector, using Vector Error Correction and Granger causality, between 1960 and 2015. The research found a long-run as...

e-CRM and Loyalty: A Mediation Effect of Customer Experience and Satisfaction in Online Transportation of Indonesia

Sharing economy inspire people to share resources to produce more efficient economies. In Indonesia, Sharing economy is predicted to grow rapidly and become a very promising business model in the future. One of the most...

The Labor Market from Romania from the Perspective of Migration Phenomenon

Population migration is a real phenomenon that has amplified over the last two decades and will continue to grow as major disparities between regions develop. There are many reasons that generate the trend of population...

An Assessment of the Efficiency of Government Regulatory Agencies in Nigeria. Case of the National Agency for Food and Drugs Administration and Control

This study examines Business, Government and Society interrelationships. It eventually narrowed down to assessing the efficiency of government regulatory agencies, in fulfilling the role of government in protecting consu...

Download PDF file
  • EP ID EP177918
  • DOI -
  • Views 117
  • Downloads 0

How To Cite

Baaeth Atallah Dalaien (2016). Impact of Global Financial Crisis on Banking Sector of India and Jordan. Academic Journal of Economic Studies, 2(1), 79-95. https://www.europub.co.uk/articles/-A-177918