The effect of financial consumer protection on banks’ competitiveness and profitability

This study examines the effect of Financial Consumer Protection (FCP) on banks’ competitiveness and profitability, using data from Jordanian banks for period 2013–2020. The constructs a FCP index related to customer complaints statistics, communication channels, dispute resolution, protection rights special needs people. Fixed-effect model is used as an estimator based balanced panel data. finds evidence that stricter complying with requirements tend decrease profitability in Jordan. main result confirmed by different robustness tests (dynamic estimation applying generalized method moments (GMM) random-effect). Overall, this contributes existing banking literature provides better understanding balancing between customers financial products’ interests institutions’ obligations. Finally, has essential implications products, policymakers, researchers. Thus, future studies area are recommended