Factors Affecting Credit Policy in Islamic Banks of Jordan

The paper aimed to study the factors affecting credit facilities for banks in Yemen. The study sample consisted of all Yemeni banks during the period 2006-2018. It used the ratio of credit facilities to total assets as a dependent variable and eight independent variables: deposit ratio, capital ratio, lending rate, deposit rate, statutory reserve ratio, liquidity ratio, inflation rate, and economic growth. The results revealed the absence of any statistically significant effect for each of the percentages of deposits, the percentage of capital, the interest rate on loans and deposits, liquidity ratio, and the legal reserve ratio on the proportion of the credit facilities. While there is a positive impact on both average interest rates on loans, inflation, and economic growth, but is not statistically significant. The recommendation was to avoid excessive liquidity and seek to employ their cash balances while expanding the granting of credit facilities