• The contribution of the banking sector to the Gross Domestic Product (GDP) reaches 8.0%, and every dinar spent in the banking sector contributes approximately 1.5 dinars directly and indirectly to the national economy.
  • Banks’ spending on corporate social responsibility amounts to 30 million dinars annually, equivalent to 5-6% of the banks’ net profits.
  • A 10% increase in credit facilities leads to an approximately 2.7% increase in economic growth.
  • Banks’ portfolio of government securities constitutes about 51% of the total balance of bonds and treasury bills.
  • The income tax paid by the banking sector reached 277 million dinars in 2022, accounting for 20% of the total collected taxes.
  • Banks represent approximately 48% of the market value of stocks listed on the Amman Stock Exchange, with non-Jordanian ownership in Jordanian banks at 55%.
  • The Jordanian banking sector enjoys a reputable international standing, being classified as sound, secure, robust, with high levels of capital and liquidity.
  • The number of employees in the banking sector reached 22.4 thousand Jordanians, with women constituting 35% of them.
  • The number of bank branches in Jordan exceeds 865 branches distributed throughout the kingdom, with more than 2200 ATMs.
  • Banks are working diligently to achieve the transition to digital services and to reach a cashless society.
  • The achievements of the banking sector are attributed to high efficiency and significant efforts by bank leaders.
  • The Central Bank of Jordan and its meticulous oversight of the banking sector have played a significant role in creating a suitable environment for a distinguished banking sector by all standards.
  • All the achievements of the banking sector and the facets of development were realized within the framework of the comprehensive national renaissance led by His Majesty King Abdullah II.


On the occasion of World Bank Day, which falls on the fourth of December, the Association of Banks in Jordan held a press conference to announce the results of a study conducted under the title “Contributions of the Banking Sector to Economic Activity: Comprehensive Analysis of Contribution and Impact.”

Dr. Maher Al-Mahrouq, the Director General of the Association of Banks in Jordan, stated that World Bank Day, designated by the United Nations on December 4th, recognizes the significant potential of banks in sustainable development financing. It also acknowledges the vital role that banking systems play at the national level in improving the standard of living.

Al-Mahrouq added that this press conference aims to shed more light on the pivotal role of the banking sector in the Jordanian economy, especially since the Jordanian economy is considered an economy based on banks, which constitute more than 97% of the financial sector in Jordan.

Al-Mahrouq announced the results of the study conducted by the association, focusing on the contributions of the banking sector to the Jordanian economy. The study aimed to shed light on the role of the banking sector in various crucial economic aspects, using an analytical approach to assess the economic contributions and impact of the sector.

According to Al-Mahrouq’s review of the study’s key findings, the banking sector is among the highest economic sectors in creating value-added, accounting for over 84% of its total production and operational activities. He emphasized that the value-added by the sector amounted to approximately 1.7 billion dinars out of the total production in 2021. Al-Mahrouq also noted that the banking sector’s contribution to the Gross Domestic Product (GDP) reaches around 8.0%, considering the size and close interconnection with other economic sectors.

According to Al-Mahrouq, “every dinar spent in the banking sector directly and indirectly contributes about 1.5 dinars to the national economy, through calculating the value of the banking sector’s spending multiplier”. He affirmed that these indicators “effectively warrant acknowledging the achievements of the sector and praising them.”

Regarding the relationship between the banking sector and the individual (family) sector, Al-Mahrouq stated that the banking sector plays a clear role in serving all segments of the Jordanian society. The banking system provides various financial services to individuals, including housing and personal loans, enabling them to improve their living standards and enhance local consumption, thereby boosting overall demand in the economy and reflecting on stimulating economic growth.

Al-Mahrouq also addressed the social role of the banking sector, highlighting that the social responsibility of banks is inherent in their citizenship and stems from their high national sense. He pointed out that banks undertake numerous initiatives in supporting national institutions, healthcare, sports, education, training, employment, heritage, environment, culture, arts, social work, and human development. According to Al-Mahrouq, statistics show that banks spent approximately 150 million dinars on corporate social responsibility during the years 2018-2022, equivalent to around 30 million dinars annually, constituting 5-6% of banks’ net profits after tax.

Regarding the impact of credit facilities granted by banks on the national economy, Al-Mahrouq stated that the study found that a 10% increase in credit facilities leads to an approximately 2.7% increase in economic growth. On a sectoral level, he explained that a 10% increase in credit facilities granted to economic sectors would result in a 5.6% increase in value-added in the trade, tourism, hotels, and restaurant sector, a 2.9% increase in other services, a 2.7% increase in mining and quarries, a 2.6% increase in agriculture and industry, and a 1.5% increase in the construction sector.


Al-Mahrouq affirmed that the relationship between the growth in credit facilities and the growth in Gross Domestic Product (GDP) is a positive one, evident through the alignment of the growth trajectory of credit facilities with the trajectory of real GDP growth in Jordan. He added that “increasing credit available to companies and individuals through investment financing and business expansion works to enhance economic activity. It enables companies to obtain the necessary funding for purchasing new equipment and expanding their production capabilities, leading to increased output and job creation.” Al-Mahrouq emphasized that this relationship also applies to the individual sector, where utilizing credit for home and car purchases and personal financing contributes to economic growth by increasing spending and consumption, thereby boosting overall demand.

Regarding small and medium-sized enterprises (SMEs), Al-Mahrouq highlighted their importance as drivers of economic growth and employment in Jordan. He pointed out that the financing provided by banks to these companies increased to around 3.182 billion dinars in 2022 compared to 1.984 billion dinars in 2016.

In a related context, Al-Mahrouq discussed the role of the banking sector in providing financing to the government, stating that the banks’ portfolio of government securities amounted to about 9.5 billion dinars. This represents 51% of the total balance of bonds and treasury bills at the end of 2022, with a net credit provided by banks to the central government of approximately 12 billion dinars. He also mentioned that the income tax paid by the banking sector reached 277 million dinars in 2022, constituting 20% of the total taxes collected.

Regarding the banks’ role in the financial market, the Director General of the Association noted that banks represent around 48% of the market value of listed stocks on the Amman Stock Exchange. Additionally, the banking sector is a significant attraction for investment, with non-Jordanian ownership in Jordanian banks reaching approximately 55%, indicating a high level of confidence from investors.

The study highlighted the outstanding performance of the Jordanian banking sector in various international reports, according to Dr. Al-Mahrouq. In addition, the Jordanian banking sector has a prestigious reputation internationally, being classified as sound and secure. This classification is in line with the financial resilience indicators of the sector, including a capital adequacy ratio of 17.4%, surpassing the percentage specified by the Central Bank (12%) and the Basel Committee’s requirement (10.5%), as per the Financial Sector Assessment Program (FSAP) results from the International Monetary Fund mission.

Al-Mahrouq added that the study includes various other details related to the banking sector’s role in the economy, such as employment. He mentioned that the number of employees in the banking sector reached 22.4 thousand Jordanians, with women constituting 35%, the highest among economic sectors. The banking sector focuses on the youth, with approximately 74% of employees below the age of 40.

In terms of geographical distribution, Al-Mahrouq stated that the number of branches of operating banks in Jordan exceeds 865 branches distributed within the kingdom. There are more than 2.2 thousand ATMs, with about 14 branches per 100 thousand adults, higher than the average of middle-income Arab countries and equal to the global average.


He also highlighted banks’ efforts to provide financial services to individuals with special needs, such as Braille language, speaking bank services, text-reading programs, and ensuring easy access to bank branches. Al-Mahrouq emphasized the sector’s commitment to achieving a digital transformation for a cashless society.

At the end of the presentation, Al-Mahrouq expressed his gratitude and appreciation to the chairpersons and CEOs of the banks, attributing the sector’s achievements in Jordan to their leadership. He acknowledged their high competence and significant efforts in developing the banking sector, tirelessly working to realize their visions and ambitious aspirations for the banking sector. Al-Mahrouq highlighted their exemplary leadership, which has become a model and a symbol of excellence in banking in the region.

He also praised the Central Bank of Jordan for its effective oversight of the banking sector. He emphasized the crucial role it played in creating an environment conducive to a distinguished banking sector by ensuring adherence to high standards. Additionally, he acknowledged the central bank’s important role and high proficiency in managing monetary policy, implementing sound procedures, and following effective policies.

Al-Mahrouq underscored that all the achievements of the banking sector and its development were part of the comprehensive national renaissance led by His Majesty King Abdullah II bin Al-Hussein. He credited the King for his efforts in various economic and social aspects that created favorable conditions for the sector’s growth and development.

In conclusion, Al-Mahrouq mentioned that the Association of Banks in Jordan, established in 1978, aims to elevate and promote banking activities by fostering the interests of banks, coordinating among them for mutual benefit, and enhancing the methods and modernization of banking services. The association also seeks to solidify banking concepts and practices, empowering banks to maximize their contributions to sustainable development in the Kingdom. He expressed sincere thanks to the chair and members of the association’s board of directors for their support in achieving its goals, acknowledging their wise guidance and its significant impact on the development of services provided by the association to banks, ultimately contributing to the maximization and support of banks’ roles in the national economy.

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