The banking sector in Jordan is concentrated. The share of assets which the three largest banks hold is
approximately 70% in light of the worldwide assets of Jordanian banks. With regard to banking policy, the Central
Bank of Jordan adopted further procedures and measures to improve the status of the banking institutions, raise
the level of competition between its units, and strengthen the industry’s capacity in the field of risk management on
the basis of best international practices.
With regard to the operations of licensed banks in 2011, the outstanding balance of credit facilities which
had been extended grew by 2.2% (273.1 Jordanian Dollars). The private sector accounted for 62.5% of this amount
in extended credit facilities. Total deposits also increased by 12.3% (2196.1 Jordanian Dollars). The private sector
had the biggest share of this increase in total deposits, and accounted for 89.6%. The developments with regard to
interest rates in the banking sector indicated that, interest rates on time deposits were reducing at a higher rate
than the decrease on credit facilities. Therefore, the interest rate margin which is measured by the difference
between the rate on advances and loans, and the rate on time deposits, increased to settle at 488 basis points at
the end of 2011, compared with 396 basis at the end of the preceding year (Mansur and International Monetary
Fund, 2007).