The Relationship Between Non-Interest Revenue and Sustainable Growth Rate: A Case Study of Commercial Banks in Jordan

• 발행기관: 한국유통과학회
• 저자명: Zaher Abdel Fattah AL-SLEHAT Arshed Fouad ALTAMEEMI
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 8 No.5, 99~108쪽, 전체 10쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2021.05.30

영문 초록

As expansion of interest income business faces several limitations, non-interest revenue can play a vital role in increasing the net profit margin and the productivity of the assets to sustain the growth rate. This study aims to analyze the Effect level (partial or total) of a bank’s size on the relationship between non-interest revenue and the sustainable growth rate of Jordanian commercial banks. Baron and Kenny’s methodology (1986) was adopted to test and analyze the effect of non-interest revenue: including the bank’s size, on the sustainable growth rate during the period from 2008–2019. Data collection was done for thirteen commercial banks which constituted 100% of the study population. Testing four hypotheses by using Amos program and a regression model to diagnose the partial and total effect of size. Findings indicate that there is a nonlinear relationship between Non-IR and SGR due to the total effect of bank size on the sustainable growth rate. The results of this study is expected to enable the banks to diversify their revenue to support financial performance towards healthy growth without facing additional financial problems. This study adopted a different methodology from the prior efforts, by using the mediation effect role to verify the effect of non-interest revenue.

목차

1. Introduction

2. Theoretical Relationship Between Non-IR and SGR

3. Literature Review and Hypotheses

4. Methodology

5. Results

6. Conclusion

키워드

Sustainable Growth Rate Non-Interest Revenue Bank Size