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Article
Publication date: 2 October 2009

Osama D. Sweidan

The purpose of this paper is to examine the hypothesis that a central bank's asymmetric preferences are able to explain inflation rate in a developing country. In addition, it…

Abstract

Purpose

The purpose of this paper is to examine the hypothesis that a central bank's asymmetric preferences are able to explain inflation rate in a developing country. In addition, it seeks to help comprehend movements of inflation rate in Jordan and to understand Central Bank of Jordan preferences regarding inflation rate and output.

Design/methodology/approach

A standard monetary model consists of a central bank's loss function and an economy structure is constructed, which acts as a constraint on the central bank's behavior. Then, a distribute‐lag version of the derived model is estimated using ordinary least squares method.

Findings

The empirical evidence from the Jordanian economy shows that inflation rate relies on the variances of inflation rate and the variances of output. This finding supports the hypothesis that a central bank's asymmetric loss function is able to justify inflation rate movements. Moreover, the Jordanian central banker prefers higher inflation rate and higher level of output.

Originality/value

The paper provides evidence from a developing country regarding the ability of the asymmetric central bank preferences to justify inflation rate movement. In addition, the paper links central banks' losses with the uncertainty level and inflation rate in the economy.

Details

Studies in Economics and Finance, vol. 26 no. 4
Type: Research Article
ISSN: 1086-7376

Keywords

Article
Publication date: 3 July 2017

Osama Omar Jaara and Abdelrahim M. Kadomi

This paper aims to investigate Jordan’s framework specifics of the anti-money laundering (AML) policy and factors related to the Central Bank instructions on money laundering.

Abstract

Purpose

This paper aims to investigate Jordan’s framework specifics of the anti-money laundering (AML) policy and factors related to the Central Bank instructions on money laundering.

Design/methodology/approach

A questionnaire has been distributed to a random data sample of 100 branch bank managers and supervisors who have a sufficient experience in this issue, and a t-test statistical technique has been used.

Findings

The results revealed that commercial banks of Jordan are committed to the instruction of the central bank, and they are highly qualified in all investigated measures.

Practical implications

This study supports the Central Bank of Jordan’s efforts in combating money laundering, which encourage all commercial banks of one country to follow the same adopted regulations to identify and report transactions of suspicious behaviour: investigate capability of the tellers and customer account representatives to report such activities, use AML software, filter customer’s data classify available information according to levels of suspicion or based on the uncertain customers without being subject to the institutional secrecy jurisdiction and to work under cooperative management.

Originality/value

It has been recommended to utilize more advanced technology, intensify training and ensure for more knowing clients’ knowledge. The importance of this paper is to insure the following: first, the banking system is obliged to recognize and report suspicious money laundering transactions, regarding up to date the FATFA equivalence status of other countries; second, increase the awareness and ensure the central bank efforts’ success; third, assure the adequacy of different issues such as the internal control system tools; devices or tools availability; and sufficient employees’ qualifications in facing launderers attempts; fourth, to be sure that suspected transactions are checked against any commercial bank records; finally, to be sure that commercial banks are giving enough considerations to all the AML proactive actions such as the regulations of checking while opening an account, accepting money on deposit, giving loans, issuing a debit card, traveller’s check and collecting enough information about new clients.

Details

Journal of Money Laundering Control, vol. 20 no. 3
Type: Research Article
ISSN: 1368-5201

Keywords

Open Access
Article
Publication date: 12 January 2023

Mohamed Ibrahim Mugableh, Eyad Mohammad Malkawi and Mohamed Adnan Hammouri

This study analyzes the impact of the procedures followed by the Central Bank of Jordan during the COVID-19 pandemic on the financial performance of Jordanian banks listed on the…

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Abstract

Purpose

This study analyzes the impact of the procedures followed by the Central Bank of Jordan during the COVID-19 pandemic on the financial performance of Jordanian banks listed on the Amman Stock Exchange over the period (2019Q1–2021Q3).

Design/methodology/approach

The panel fixed effect model was used to measure the impact of each of the required reserve ratios and the deferred loans on the profitability of Jordanian banks represented by the return on total assets.

Findings

The results revealed a negative relationship at the significance level of 10% between the required reserve ratio and the return on total assets. Also, there is a negative relationship at the significance level of 5% between the deferred loans and the return on total assets.

Research limitations/implications

The paper recommends the Central Bank of Jordan following a precautionary policy to encounter systematic risks that cannot be eliminated by using diversification.

Originality/value

With the severe impact of the Coronavirus pandemic on the overall economic performance of the national economic sectors and the subsequent negative impact on the living standard of society’s members, this study shows the government’s role represented by the procedures of its monetary authority (Central Bank of Jordan) to mitigate the effects of this pandemic, as well as measuring the impact of these procedures on the financial performance of Jordanian banks listed on the Amman Stock Exchange.

Details

Arab Gulf Journal of Scientific Research, vol. 41 no. 4
Type: Research Article
ISSN: 1985-9899

Keywords

Article
Publication date: 1 February 1999

Lu'ayy Minwer Al‐Rimawi

This paper examines comparative aspects of Arab securities regulation. It provides a general introduction, overviews the aims of securities regulation and the UK regulatory…

Abstract

This paper examines comparative aspects of Arab securities regulation. It provides a general introduction, overviews the aims of securities regulation and the UK regulatory framework, and outlines the obstacles facing equity financing under Shari'a and hindrances to effective Arab securities regulation. It accounts for the major macroeconomic reasons which have enhanced interest in Arab securities markets, examines lack of Arab rules on fraud, insider dealing and possible contractual remedies. It concludes with a case study shedding light on the term ‘securities’ as understood by Article 3 of the 1997 Jordanian Securities Act.

Details

Journal of Financial Regulation and Compliance, vol. 7 no. 2
Type: Research Article
ISSN: 1358-1988

Article
Publication date: 3 October 2016

Ahmad Mohammad Abdalla Abu Olaim and Aspalella A. Rahman

We are living in a time when there is a stronger requirement for co-operation to fight organized crimes and the resulting flow of illicit funds. This is due to the globalization…

Abstract

Purpose

We are living in a time when there is a stronger requirement for co-operation to fight organized crimes and the resulting flow of illicit funds. This is due to the globalization and interconnection between world economies and financial systems, as well as with the new technologies that allow rapid movement of funds around the globe. From the early beginning, Jordan realized the importance of providing anti-money laundering technical assistance, especially at the international level. The reason for this comes from Jordan’s strong belief that money laundering crimes can be fought domestically as well as internationally, particularly by combining efforts between Jordan and other countries. The purpose of this paper is to examine the development that Jordan has witnessed in the fighting of money laundering.

Design/methodology/approach

This paper relies on various laws that tackle organized anti-money laundering in Jordan before 2007, with the Jordanian Anti-Money Laundering and Counter Terrorist Financing Law for 2007 as the primary source of information.

Findings

Before 2007, Jordan fought money laundering through a group of laws that are indirectly concerned with combating money laundering. While these laws govern certain crimes, they managed to fight money laundering indirectly. By the year 2007, the Jordanian Anti-Money Laundering Law was passed and published on the official gazette on June 17, 2007. This law became effective after 30 days from that date. The Jordanian Anti-Money Laundering Law is one of the needed laws to keep a safe financial environment. Jordan’s obligation in accordance to the international conventions has made the country join and ratify the efforts, resulting in the issuing of the law. Since then, this law has become concerned with anti-money laundering in Jordan.

Originality/value

This paper provides an examination of the system in Jordan to combat money laundering before and after 2007. It is hoped that the content of this paper can provide some insight into this particular area for practitioners, academics, policy makers and legal advisers, not only in Jordan but also elsewhere. There will be significant interest in how Jordan has been developing the anti-money laundering system because of the international nature of the crime and its seriousness.

Details

Journal of Money Laundering Control, vol. 19 no. 4
Type: Research Article
ISSN: 1368-5201

Keywords

Article
Publication date: 15 May 2007

Bashar H. Malkawi and Hikmet O. Malkawi

The purpose of this paper is to examine the anti‐terrorist finance provisions in the Penal Law as well as the vulnerabilities in place that hamper more effective regime.

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Abstract

Purpose

The purpose of this paper is to examine the anti‐terrorist finance provisions in the Penal Law as well as the vulnerabilities in place that hamper more effective regime.

Design/methodology/approach

The paper identifies the pre‐September 11 legal structure in Jordan regarding terrorist finance. Since, then the amended Penal Law, promulgated on October 8, 2001, has emerged as the principal tool in addressing terrorist finance activities. The paper is divided into five sections covering pre‐existing statutory provisions on terrorist finance, Jordan's counterterrorist financing regime including money laundering law and directives, the anti‐terrorist finance provisions in the Penal with its constituent elements, Jordan's accession to the United Nations Convention for the Suppression of the Financing of Terrorism, and finally the paper provides a set of conclusions.

Findings

There are still many loopholes to close in Jordan's anti‐terrorist finance initiatives. There is a need for greater enforcement of existing provisions with an eye to expanding the scope of article 147(2) of the Penal Law to include Islamic banks, hawala, charities, and zakat. A clear definition of the term “terrorist activity” should be supplied in article 147(2) and penalties for terrorist finance offense should be tightened.

Research limitations/implications

Lack of publications or research on the subject of terrorist finance in Jordan in Arabic.

Practical implications

This paper will be very helpful for any individual interested in the legal regime of anti‐terrorist financing as it exists in Jordan.

Originality/value

This paper meets a need for an understanding of the Jordanian legal regime as applied to anti‐terrorist financing and offers insights to lawyers and academics.

Details

Journal of Money Laundering Control, vol. 10 no. 2
Type: Research Article
ISSN: 1368-5201

Keywords

Article
Publication date: 1 February 1991

Talib Younis

Details the findings of research into the establishment of theCities and Villages Development Bank (CVDB) of Jordan. The structure ofthe bank, its objectives and its internal…

Abstract

Details the findings of research into the establishment of the Cities and Villages Development Bank (CVDB) of Jordan. The structure of the bank, its objectives and its internal procedures and mechanisms for providing assistance to local authorities in identifying priorities for area development are also set out. The role of the CVDB in providing funding and technical expertise, and in project administration and budgetary control is also discussed. Describes the types of project to which the bank is intended to lend support, and the actual borrowing by local councils in the Al‐Balqa governate in 1987 and 1988.

Details

International Journal of Public Sector Management, vol. 4 no. 2
Type: Research Article
ISSN: 0951-3558

Keywords

Article
Publication date: 13 June 2020

Firas Murrar and Khaled Barakat

This study aims to define the role of the Financial Action Task Force (FATF) and its Style Regional Bodies (FSRBs) that combat money laundering (ML) and terrorist financing (TF…

Abstract

Purpose

This study aims to define the role of the Financial Action Task Force (FATF) and its Style Regional Bodies (FSRBs) that combat money laundering (ML) and terrorist financing (TF) by measuring how well some Arab countries have complied with FATF’s “Forty Recommendations” with respect to the regulatory framework.

Design/methodology/approach

This study combines the comparative analysis methodology with a descriptive analytical approach to compare three member countries of the Middle East and North Africa Financial Action Task Force (MENAFATF). It uses secondary data sources, namely, theoretical literature on the subject and FATF reports on mutual evaluation reports (MERs).

Findings

This study examined the variations in compliance with FATF standards among three member countries of MENAFATF: Bahrain, Morocco and Jordan. While Bahrain has almost completely fulfilled these standards, Morocco and Jordan have only partially fulfilled them. These variations in compliance are mainly attributed to the uneven level of readiness in the countries’ commitment to the legislative and regulatory requirements before the process of mutual evaluation.

Originality/value

Researchers can find several studies on the role of FATF and FSRBs in combating ML and TF. However, no studies have focussed on the application levels of FATF standards, which are relevant to the regulatory frameworks of member countries. This study makes a unique and vital contribution, as it demonstrates the effectiveness of applying the FATF standards.

Details

Journal of Money Laundering Control, vol. 24 no. 1
Type: Research Article
ISSN: 1368-5201

Keywords

Article
Publication date: 31 December 2003

Lu’ayy Minwer Al‐Rimawi

Reviews briefly the Jordanian legislation and other measures against money laundering; they include the Central Bank of Jordan Memorandum No. 210 /97, which was advisory and not…

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Abstract

Reviews briefly the Jordanian legislation and other measures against money laundering; they include the Central Bank of Jordan Memorandum No. 210 /97, which was advisory and not sufficiently clear on what money laundering actually is. Moves on to Article 93 of the 2000 Jordanian Banks Law, which makes it mandatory for every bank to report to the Central Bank of Jordan any transaction in which it is involved if it suspects that it is related to an illegal act; while Central Bank Regulations No. 10 for 2001 is Jordan’s first specialised regulation on money laundering.

Details

Journal of Money Laundering Control, vol. 7 no. 1
Type: Research Article
ISSN: 1368-5201

Keywords

Book part
Publication date: 19 March 2018

Fadi Hassan Shihadeh, Azzam (M. T.) Hannon, Jian Guan, Ihtisham ul Haq and Xiuhua Wang

This study investigates the relationship between financial inclusion (FI) and banks’ performance in the economy of Jordan using annual data of 13 commercial banks from 2009 to…

Abstract

This study investigates the relationship between financial inclusion (FI) and banks’ performance in the economy of Jordan using annual data of 13 commercial banks from 2009 to 2014. Performance is measured by gross income and return on assets (ROA) of these banks. To ensure the robustness of our results, we used six different measures of FI. These include credits for small and medium enterprises (SMEs), deposits for SMEs, number of ATMs, number of ATM services, number of credit cards, and new services. We found a significant impact of FI on ‘ performance when measured by gross income, and ROA, although our study displays different results when considering the effect of FI variables separately. Thus, FI contributes to enhance the banks’ performance. Therefore, the banks should devote more resources to increase FI as it benefits their profitability.

Details

Global Tensions in Financial Markets
Type: Book
ISBN: 978-1-78714-839-0

Keywords

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