Jordan's Prime Minister Ali Abu Ragheb urged commercial banks, especially the small ones, to merge, reported the Jordan Times newspaper.
The prime minister said the government encourages banks to merge to form more efficient institutions that can more effectively play a leading role in the national economy.
At least 18 commercial and specialized banks are operating in Jordan, in addition to four foreign banks, said the daily.
According to the paper, many banks have recorded a decline in their profits in the past three years.
In 1998, the central bank demanded commercial banks increase their capital to JD20 million (approximately $14 million) to enable them to enhance their performance and expand their work, said the paper.
Among the services merged banks can more effectively introduce are home and mobile banking, long-term financing, one banker said.
"Small entities will not be able to compete and record good profits as long as they remain unchanged," he said -- Albawaba.com
© 2001 Al Bawaba (www.albawaba.com)
