Journal of Poverty, Investment and Development www.iiste.org ISSN 2422-846X An International Peer-reviewed Journal Vol.10, 2015 107 Impact of Economic Variables on the Performance of the Jordanian Banking Sector Dr.Ghazi Abdulmajeed Alrgaibat Assistant Professor Department of Banking and Finance ,Faculty of finance and Business administration,Al al-Bay Universityt Abstract The article aims to appear the level of achievement in the Jordanian commercial banks, there are several goals for this study as a study developments in the Jordanian banking sector and financial legislation in addition to realizing the concept of banking performance ,in addition to the main factors that determine the level of performance as well as the degree and quality of performance in the domestic commercial banks, compared with foreign commercial banks, which operates in Jordan, and measure the level of concentration of the banking sector of Jordan, on the other hand the study used some statistical methods to test the degree of performance for commercial banks, and to measure the performance of the Jordanian Commercial Banks ,also the study relied on a methodology (Panzar-Rosse) to evaluate the performance of commercial banks, which contributed to test the assumptions which adopted by the study in order to determine the effect of independent factors on the dependent variable, thus can formulate some equations that led to show results, and notably that there is no relationship between performance in the banking sector and economic variables such as; inflation, gross domestic income, balance of payments and budget deficits, The results also showed that there is a very high banker concentrating for the study sample on assets, in addition to the presence of concentrating in banking deposits, results showed also concentrating in bank credit facilities, with it's close to the average rate. Keywords: economic variables, concentration banking, banking performance . Introduction The Jordanian banking sector Occupies a prominent place among other sectors of national economy that effects financial and social, which touches different segments of Jordanian society through a lot of businesses and activities that affect and are affected by elements of national economy in addition to the role of the influential played by commercial banks when providing banking services successive and modern to made it the most important sector for the efficiency and ability to deal positively and effectively with internal and external developments. This requires from commercial banks efficient capability to analyze and manage risks in scientific and practical modern methods, as well as efficient management of investment portfolios, departments of the creative management for sources of funds and their usages , to achieve high performance we must adopt plans and policies for each commercial bank, which rely on the translation of plans set to the achievements, and improve the operational efficiency of the optimal exploitation of the production inputs in order to reach a high quality product at the lowest possible cost, enabling them to progress and continue all the way to the best performance. The level of monopology is reflected on the management and profitability of commercial banks which decline of achievement , profitability and then a affect on quality of the banking and financial services provided , that leads neglecting to meet the desires of customers that lead weakness in performance, in contrast, the good performance of Jordanian Commercial Banks Problem of the study : I have to highlight the problem of the study by answering the questions: 1 - Do macroeconomic factors affecting the degree of performance of commercial banks that operating in Jordan? 2 - Is the banking concentration affects on the degree of performance? 3 - Is the size of the bank affects the degree of performance? Hypotheses of the study The main hypothesis: There is no statistically significant effect of the four largest banks concentration and macro-economic variables, and performance of banking on the other hand. And emanated the following sub- hypotheses: 1. No statistically significant effect of a concentration ratio between the four largest banks and (IA) performance. 2. No statistically significant effect of a concentration ratio between the largest four banks and the rate (INF) inflation. 3. No statistically significant effect of a concentration ratio between the largest four banks and the rate Growth in GDP. 4. No statistically significant effect factor affecting the rate of four banks concentration among the factors that affecting the concentration ratio greater banks in terms of deposits and in terms of credit facilities