The impact of financial innovation determinants on banking efficiency A standard study of a sample of Jordanian commercial banks using the panel models

Abstract

This study aims to test the effect of the determinants of financial innovation on banking efficiency, which was determined based on profitability indicators, which are return on assets and return on equity. in order to reach that. We conducted standard study using panel data models on a sample of Jordanian banks specifically as sample of prominent Arab banks in the field of financial innovations, which made great strides in this framework. The study sample included six leading local commercial banks in field of Jordanian banking, namely: Jordanian Kuwaiti, Al Ahli Jordan, Bank of Jordan, Cairo Amman, Jordanian Commercial and Housing Bank for Trade and Finance, During the period from 2008 to 2017, approving the annual reports of Association of Banks and annual reports of these banks. One of the most important findings of the study results is that there is a difference impact of financial innovation that was adopted in the study model. The results of the economic measurement concluded that there is a positive impact for each of the available financial resources, innovative financial products, and the competition index on both return on assets and return on equity, while the size of the bank had no effect on that.