Jordan’s Banking Sector Steps Up Efforts for Regulatory Compliance

The Central Bank of Jordan has issued several circulars and instructions to licensed banks, money exchange companies, and other financial institutions, outlining their responsibilities and obligations in complying with regulatory requirements.

Promoting Good Governance and Risk Management Practices

The bank has issued several instructions aimed at promoting good governance and risk management practices among financial institutions. These include:

• Instructions of Corporate Governance for Banks: This circular provides guidance on corporate governance best practices for banks operating in Jordan.
• Governance and Management of Information and Related Technology guidelines: These guidelines outline the importance of robust information management systems and technology governance.

Implementing International Financial Reporting Standards

The Central Bank has also issued circulars related to the implementation of international financial reporting standards, including:

• Cover Letter No 10/1/7702 Dated 6/6/2018 of Implementing the International Financial Reporting Standard 9 Instructions No 13/2018: This circular provides guidance on the implementation of International Financial Reporting Standard 9 (IFRS 9).

Other Regulatory Initiatives

The bank has issued instructions on various aspects of banking operations, including:

• Management of Assets and Liabilities in Foreign Currencies: This circular outlines the procedures for managing assets and liabilities in foreign currencies.
• Electronic Money Transfer Business: This instruction provides guidance on electronic money transfer business operations.
• Effective Interest Ownership: This circular outlines the rules governing effective interest ownership.

Why Regulatory Compliance Matters

The bank’s efforts to ensure regulatory compliance are crucial in maintaining financial stability and protecting consumers. The implementation of these regulations is expected to improve the overall soundness and resilience of Jordan’s financial system.

In a statement, the Central Bank emphasized its commitment to ensuring that Jordan’s banking sector operates in a safe and stable environment, with robust risk management practices and strong governance structures in place.