Regulatory Alerts2018-01-01
Instructions No. 5 of 2018 Regarding the Application of the Net Stable Funding Ratio
The Central Bank of Jordan issued Instructions No. 5 of 2018 to establish the Net Stable Funding Ratio (NSFR) as a quantitative liquidity standard requiring banks to maintain a minimum ratio of 100%. The document defines available stable funding and required stable funding through specific weighted categories for liabilities and assets based on their liquidity and maturity profiles. It mandates that banks calculate their NSFR by applying these weights to their balance sheet items and off-balance sheet exposures to ensure long-term funding stability.
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