The Impact of Interest Rates on Size of the Credit Facilities and Deposits in Jordanian Commercial Banks (1985-2014)

Gazi A AlRqeebat, Torki M. Al-Fawwaz

Abstract


This study aimed to identify the impact of interest rates on the size of (Credit facilities, and deposits) in Jordanian commercial banks for the period (1985-2014). To achieve the study objectives the least squares (OLS) regression was used to indicate the relationship between variables of the study.
The results indicated that all the variables of the study are not stationary at level, but after taking first difference all variables become stationary. Also the results showed that there is no statistically significant effect of interest rates on credit facilities and deposits in Jordanian commercial banks, the alternative hypothesis rejected.
The result showed that there is a positive relationship between the interest rate and the size of the credit facilities, but it is a negative relationship with the deposit size.

Keywords


Commercial banks, Credit facilities, Deposits, Interest rate, OLS.

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