The Impact Of Financial Risks On The Profitability Of Islamic Banks Operating In Jordan (2019-2022)
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Abstract
Islamic banks seek to achieve greater compatibility with international standards and regulations related to financial risk management. This can help enhance the reputation of these banks and expand their operations on the global stage. Studying financial risks helps ensure the sustainability of Islamic banking. By controlling risks, Islamic banks can preserve capital and reduce the chances of significant losses.
The study aimed to examine the impact of financial risks, including credit risk, interest rate risk, and liquidity risk, on the profitability of Islamic banks operating in Jordan. The study employed a descriptive-analytical approach, the study population consisted of financial data for all Islamic banks operating in Jordan, during the period from 2019 to 2022.
Financial risks: credit risks, interest rate risks, and liquidity risks, have a negative impact on the profitability of Islamic banks operating in Jordan during the period from 2019 to 2022.