The Institutional Centralization for Deposits and the Impact on Jordanian Banks Earnings

Jordanian banks face external and internal challenges which lead to a decrease in their profitability. This is the topic of this research. The market share of deposits among banks varies greatly. The largest three banks have about 60 of all deposits while all other banks have the remaining 40 . The study used a model with six independent variables that have an impact on profitability. Statistical analysis of these variables using SPSS shows no clear evidence of a connection between profitability and deposit size. It also shows a number of relationships which may be of interest to bankers. For example, the evidence shows a negative relationship between the cost of deposit sources and profitability; a positive relationship between wages and profitability; no relationships between loan size, capital to asserts ratio, the growth of money supply on one hand, and profitability on the other hand