Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)

Abstract

The Effect of Credit Facilities Granted by Commercial Banks on The Jordanian Economy

Author(s): Hanan Ahmad Al-Qudah, Khawla Kasd Abdo, Laith Akram Al-Qudah, Omar Hani Ali, Mohammad Zakaria Ahmad

This study aims to research upon the effect of credit facilities granted by commercial banks on the Jordanian economy and the objectives of research includes the identifying the impacts of credit ratings on the Jordanian economy along with providing suitable recommendations. Therefore, the research has been divided into five chapters that include introduction, literature review, methodology, data findings and conclusion. Credit facility is a type of agreement that is made with the bank along with the person or organisation in terms of taking credit. The methodology of research study includes Positivism philosophy has been used as it helps in verifying accuracy of information with mathematical derivations. Deductive approach has been applied to identify the influence of credit facilities on the Jordanian economy to develop high quality analysis. Descriptive research design has been used so that collected information can be explained in a detailed manner along with charts and graphs. Primary method of data collection is used to determine all the results of using credit facility in the commercial bank of Jordanian economy with. Sample size includes information related with last 14 years. It has been identified that the role of commercial banks in the Jordanian economy is a significant and the credit ratings are influencing the economy with drastic influence. The results of study also demonstrated that for enhancement in credit facilities of Jordan economy has significant relationship with the financial institutions and commercial banks of country. The study will contribute to the deep understanding of relationship between Jordan’s economy and credit facilities granted by commercial banks.

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