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Volume :18 Issue : 2 2011
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The Impact of Foreign Banks Entry on Risk and Return: Evidence from the Jordanian and the Arab Gulf Banking
Auther : Suzan s. issa
khalid a. al-zoubi
This research paper examines the expected effects for the entry of foreign banks on the domestic banking market in Jordan and the Arab Gulf countries. The research is based on the financial statements of sample of 52 banks during the period of 1996-2004. Data is collected from the World Bank, Bank Scope, Arab Monetary Fund, International Monetary Fund, and annual reports. Conclusions show that the entry of foreign banks has an unfavorable effect on net interest margin, accounting profit, and banking risk, and a favorable effect on non-lending activities and operating expenses.