The Role of Internal Control Systems in Ensuring Financial Performance Sustainability

This study investigates the influence of internal control systems (ICS) compliance on banks’ financial performance sustainability (FPS) in the Amman Stock Market. Using a questionnaire survey of sixteen listed banks, the extent of ICS compliance and its impact on various indicators of financial performance is examined, such as profitability, earnings, and returns on sustainability initiatives. It is found that the banks comply with ICS requirements and that ICS compliance positively and significantly affects their financial sustainability. In particular, this study shows that the control activities, information and communication, and monitoring components of ICSs are key drivers of bank performance. These findings have important implications for policymakers and regulators who aim to enhance the effectiveness of ICSs in banks and foster economic growth in the region. As sustainability becomes a vital issue in the banking sector, understanding how ICS compliance relates to financial sustainability is essential for ensuring long-term viability.