The Financial Indicators and their Role in Judging the Efficiency of Commercial Banks Performance in Jordan: A Case Study of the Arab Bank Situation

This study aimed to identify how to employ the financial resources and evaluate the financial and operating policies applied by the management of the Arab Bank. The researchers applied the practical approach based on selecting a set of the Bank's financial statements and the calculation of the assessment of the financial performance indicators of the years covered by this study. The researchers concluded that there weaknesses in the management and use of funds in the Arab Bank. This was shown through a large surplus cash amount held by the Bank, either in Bank or other banks, reaching up to 32.77 % of total assets in some years of study. This reflected adversely on the Bank's performance and reduces the possibility of achieving profits; especially the Bank bears the costs of obtaining, management and protection of such funds. The researchers recommended the need to restructure the elements of areas of funds investments available to Arab Bank by expanding the investment portfolios, in addition to the employment of these funds in areas of public debt, in particular, the Bank has the surplus liquidity, the bank apparently encounter difficulty in its investment. Keywords: The banking industry, the methods and tools of financial analysis, Bank performance evaluation indicators, financial banking operating efficiency, profitability of the capital.