Liquidity and its Impact on the Financial Performance of the Arab Bank in Jordan - Case study Arab Bank in Jordan

Abstract

The study aims to analyze bank liquidity and evaluate its impact on the Arab Bank performance during the period (2015-2019),It used 4 ratios to measure bank liquidity, namely the ratio of cash balance, the ratio of legal reserves, the ratio of legal liquidity, the ratio of employment, while independent variables of financial performance included variables of the return on assets and the return on equity, and the study model was used self-regression VAR, and the results of the study found that the liquidity ratios of the Arab Bank were the most important and most influential factors on its financial performance, the study recommended that Arab Bank should provide the best banking facilities in order to encourage customers ‘deposits.