Impact of Corona Virus on Jordanian Banks

Topic: The Impact of Corona Virus Pandemic on the profit of
Jordanian banks Listed in Amman stock market
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Abstract
The report is actually designed to examine the potential effects of (COVID-19) cases on the
financial environment in Jordan. The findings suggest a financial impact across the country,
despite the fact that nearly all organizations across the country are having a major impact.
Additionally, permanent blocking is recognized as a threat to organizations' overall view.
COVID-19 is likely to impact the global economy. To be able to assess the credible outcome of
the Covid program on Jordan's financial environment, it is necessary to focus not only on the
financial attack, but also on what makes it important for Jordan. Leaders in government
foundations and leaders in Jordan responded to it. Coronavirus creates standard methods for
immediate cooperation. With that in mind, the article seeks to look at Covid's findings on
Jordan's monetary environment just as the best strategy to get the economy back on track to half-
build it.
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Table of Contents
Abstract............................................................................................................................................2
Introduction......................................................................................................................................5
Study Problem.................................................................................................................................7
Importance of the study...................................................................................................................7
Study Objectives..............................................................................................................................8
Study Hypothesis.............................................................................................................................8
Literature Review............................................................................................................................8
Analysis results..............................................................................................................................11
Conclusion and recommendations.................................................................................................13
References......................................................................................................................................14
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Introduction
Fitch expects further series on the quality of Jordanian banks ’resources in 2020 as a result of
increased debilitations, reconstruction and re-listing. The proportion of non-performing loans in
the area had risen to 5.2% at the end of H1 19 from 4.9% at the end of 2018 on the basis of a
stable test working situation, which has hampered reconstruction and reconstruction progress
recorded. Measures by the Jordanian Central Bank (CBJ) that allow banks to defer loan
installments, rebuild and reorganize advances without raising additional fees or delaying the
interest of some lenders could . However, it will delay the recognition of Stage 3 progress under
IFRS 9 and reduce the success rate of emissions progress in the region. Experts accept that the
highest credit age is likely to come from the fields of trade, land, development, assembly, travel
business, and friendship, just as from consumer loans.
The travel industry and friendly areas will be greatly affected by more sensitive and unfamiliar
internal interest and some mobility restrictions. The expansion of the travel and travel industry
accounts for around 19% of Jordan's GDP. Lower regional and global development will reduce
interest rates in Jordan. Jordan is deeply rooted in global investment chains and has a greater
amount of unknown value content in its targets (phosphate is an important tariff feature for
Jordan). SMEs (around 10% of area loans) and individuals (around 25%) are the weakest
lenders.
Furthermore, Jordanian banks are open to a high degree of sovereignty, which includes an
emphasis on the quality of their assets. The current crisis will put pressure on public spending
and potentially hinder financial mixing. The benefits of being an oil tanker depend on the fact
that the value of oil falls more than offset by adverse effects associated with the pandemic, for
example, declining external interest and lower settlements, which are easy to move to the Gulf
Cooperation Council (GCC) countries and the euro area. The landlord of Jordan has little room
for estimates against repetition resulting from full-fledged burdens and powerless public
finances. However, we accept outside help from the local area which supports multi-faceted
associations around the world and partner partners who continue to support Jordan's
macroeconomic determination. This includes, for example, the new $ 1.3 billion IMF deal and
unwavering financial support from the US, EU and GCC countries.
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