This study aimed to identify the main causes of the global financial crisis and the Central Bank of Jordan’s
role in containing the repercussions of this crisis on licensed banks operating in Jordan. The study
employed econometric analysis, using the linear regression model on semiannual data covering the period
(2001-2011). The results of the analysis show that the financial crisis increased the ratio of nonperforming
loans to total loans, the liquidity ratio, and the capital adequacy ratio, and decreased the return
on assets as a result of lowering the interest rate on the overnight window deposit facility. The paper
recommends the Central Bank of Jordan to continue tightening the supervision on commercial banks,
especially with respect to investments abroad in order to minimize the transmission of risks from abroad to
the banking system in particular and the Jordanian economy in general.

Title

Jordan Journal of Business Administration-International Refereed Research Journal

Publisher

University of Jordan

Publisher Country

Jordan

Publication Type

Both (Printed and Online)

Volume

9

Year

2013

Pages

356-371