AMMAN — Jordan has the second-most stable banking
sector in the world, behind only Luxembourg, according to a policy paper by the
Jordan Strategy Forum (JSF), which cited data from the International Monetary
Fund (IMF).
اضافة اعلان
The IMF uses what is known as a “z-score” to calculate the
probability of a banking system defaulting. The z-score compares a country’s
capitalization and returns with the volatility of those returns, Al-Mamlaka TV
reported.
Banking plays a major role in the Jordanian economy — among
the companies listed on the Amman Stock Exchange, banks account for 61.7
percent of tax revenue and 50.5 of total market capitalization, the paper said.
Jordan’s performance on the IMF’s Financial Development
Index has declined over the past four decades, falling from the top Arab
country in 1980 to the ninth in 2020. However, the paper pointed out that this
decline was due to financial markets rather than financial institutions;
Jordan’s score on the financial institutions axis saw an increase over the same
period.
The paper was published on the occasion of the UN’s
International Banking Day, which falls on December 4 every year.
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