The Impact Of Banking Merger On Jordanian Commercial Banks Efficiency And Profitability

Abstract

Banking merger is one of the most important transformations that the financial and banking sector has witnessed globally, as it is one of the basic manifestations of globalization.  As for Jordan, it was noted that there are limited cases of banking mergers so far, thus, commercial banks still suffer from many problems such as weak competitiveness, lack of sound management, and appropriate level of technological level, which affected their performance and profitability. Therefore, this paper aims at exploring the impact of banking merger on the efficiency and profitability of Jordanian commercial banks. To achieve this objective, a quantitative approach was adopted through the questionnaires that were distributed to 380 employees in Jordanian commercial banks, who worked in banks before and after mergers. Data were analyzed using SPSS. The results showed that there is a significant impact of banking merger on the efficiency of Jordanian commercial banks, as well as there is a significant impact of banking merger on the profitability of Jordanian commercial banks. This paper recommended the necessity of activating the banking merger process more between Jordanian commercial banks in order to avoid the problems and obstacles facing the banking business.