Paper Title
The Responsibility of Central Bank of Jordan in Maintaining the Jordanian Financial System Stable
Abstract
This paper aims to seek the responsibility of the Central Bank of Jordan (CBJ) and how it maintains the Jordanian
financial stability especially in the banking sector by using ratios such as the Liquidity Ratio, Capital Adequacy Ratio, and
Leverage Ratio. This is byinvestigating the stability of five selected banks in Jordanand evaluates the impact of the 2008
Global Financial Crisis (GFC) on the Jordanian financial system, in general, and its impact on these selected banks, in
particular.The following hypothesizes will be tested: Hypothesis (1): Did the GFC affect banks in Jordan, Hypothesis (2):
did Jordan banks recover after the GFC, Hypothesis (3): did these ratios (Capital Adequacy Ratio, Liquidity Ratio, Leverage
Ratio) help in indicating the strength of the Jordanian banking sector, Hypothesis (4): did Jordan financial stability get
stabilized after the GFC, and Hypothesis (5): Did the CBJ role affect the Jordanian banking sector positively. Based on the
study results, all these hypothesizes have been accepted.
Keywords - Central Bank of Jordan, Stability, Global Financial Crisis.