The role of corporate governance in reducing the global financial crisis implications in light of the Central Bank of Jordan

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The study aims to test the role of the measures implemented by the Central Bank of Jordan to reduce the effect of financial crisis on the Jordanian banks, using two independent variables (loans and advances rate, overnight deposit window), which are the actions of the Central Bank of Jordan, and four dependent variables (liquidity ratio, ROA ratio, capital adequacy ratio, non-performing loans ratio), which are financial stability indicators for the banks for six years (2005–2011).
To get the study results, these data are measured and analyzed using SPSS (Statistical Package for Social Sciences). It was found that the actions of the Central Bank of Jordan (loans and advances rate, overnight deposit window rate): have a statistically significant impact on the non-performing loans ratio (2005–2011); do not have a statistically significant impact on the capital adequacy ratio (2005–2011); have a statistically significant impact on ROA ratio (2005–2011); do not have a statistically significant impact on the liquidity ratio (2005–2011).

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    • Figure 1. Model of the study
    • Table 1. Independent variables (in %) for six years (2005–2011)
    • Table 2. Dependent variables (in %) for six years (2005–2011)
    • Table 3. Descriptive statistics for the study variables during 2005–2011
    • Table 4. Multiple linear regression for testing the effect of actions of the Central Bank of Jordan on non-performing loans in banks operating in Jordan (2005–2011)
    • Table 5. Multiple linear regression for testing the effect of the Central Bank of Jordan on capital adequacy ratio in the banks working in Jordan (2005–2011)
    • Table 6. Multiple linear regression for testing the effect of the Central Bank of Jordan on ROA in banks operating in Jordan (2005–2011)
    • Table 7. Multiple linear regression for testing the effect of the Central Bank of Jordan on the liquidity ratio of banks operating in Jordan (2005–2011)