The Role of Corporate Governance Code Pillars in the Reduction of the Global Financial Crisis on the Jordanian Commercial Banks in Light of the Central Bank of Jordan Instructions

Abstract:     
This study aims to determine the role of Corporate Governance Codes have been adapted by Central Bank of Jordan on the reduction of the prospected impact of the Global Financial Crises on the Jordanian Commercial Banks, in addition to that, it aims to review the latest CBJ regulation and directions have been issued during 2009 in order to motive the Jordanian Banks to expand the credit and loan to the public. In this study we have used the CG Codes Pillars for Banks, and the monthly reports issued have been issued by CBJ. In order to reach the desired results, a postal questionnaire has been sent to the risk management and internal audit departments operating in the Jordanian Commercial Banks. The researchers have used under this study the appropriate statistical analysis by applying (t- one sample test). The study has reached that the CG Codes Pillars have a significant effect on the reduction of the prospected impact of the global financial crises, on the other hand, the study did not find a significant effect of CBJ regulations and directions to the Jordanian Banks to which aimed to motivate the economy, in the meantime the study has found that the global financial crises has little impact on the Jordanian Banks, and they still sound.

Keywords: Global Financial Crisis, Corporate Governance, Central Bank of Jordan

JEL Classification: E58, G28, G38, M40, M41

Accepted Paper Series