Regulatory Alerts2005-06-14
An indicative working paper for developing follow-up on liquidity management in banks
Here is the interpretation of the data you provided: **1. Overdraft Facilities:** The data indicates an overdraft facility limit of JD6. This means that a bank account can have a negative balance, up to this maximum amount. It's important to note that in most cases, banks charge interest on such balances and encourage customers to manage their finances effectively by avoiding frequent overdraft situations. **2. Deposit Accounts:** The first number, 6666666 (JD 0.55)) is the combined limit for all types of deposit accounts such as a normal savings account, a fixed-interest account, or even an investment account in the banks. It means that for every Jordan dinari(JD) that you want to keep in these kinds of deposit accounts, the combined total amount must not exceed 6666666666666666666600 (JD 0.555)). The data also shows an increase since March 2018, where the combined limit for all these kinds of deposit accounts increased by 34,671,4900000000000 (JD 0.555). The reason behind such a significant increase could be due to the economic developments in Jordan or it might also reflect the impact of inflation and changes in the banking sector's regulatory environment over the years. **3. Loans:** The data indicates that there is no combined limit for all types of loan accounts (such as home mortgages, personal loans, or even business loans) in the banks. Instead, banks typically approve and provide loans to customers based on their income, credit history, repayment capacity, and other relevant factors. **4. Letter of Credit and Financial Guarantees:** The data also indicates that there is a combined limit for all types of letter of credit and financial guarantee accounts in the banks. This means that for every Jordan dinar (JD) that you want to secure by obtaining a letter of credit or financial guarantee, the total amount must not exceed this combined limit. The combined limit for these kinds of accounts is indicated as 7&א£j? (JD 0.555). The reason behind such a significant number could be due to various factors such as the overall financial risk appetite of the banking sector in Jordan or it might also reflect the impact of inflation, changes in the regulatory environment over the years, and other relevant factors. **5. Swaps, Options, and Other Interest Rate and Forward Foreign Exchange Rate Contracts:** The data also indicates that there is no combined limit for all types of swaps, options, and other kinds of interest rate and forward foreign exchange rate contract accounts in the banks. Instead, these financial contracts are typically offered and provided to customers by various financial institutions such as investment banks or even specialized foreign exchange brokers. **6. Deposit Accounts Drawdown on Lending Commitments:** The data also indicates that there is a combined limit for all types of deposit account drawdowns on lending commitments in the banks. This means that for every Jordan dinar (JD) that you want to withdraw from these kinds of accounts, the total amount must not exceed this combined limit. The combined limit for these kinds of accounts is indicated as ¥א£ºWKD?(JD 0.555). The reason behind such a significant number could be due to various factors such as the overall financial risk appetite of the banking sector in Jordan or it might also reflect the impact of inflation, changes in the regulatory environment over the years, and other relevant factors. **7. Letter of Credit and Financial Guarantees:** Finally, the data also indicates that there is a combined limit for all types of letter of credit and financial guarantee accounts in the banks. This means that for every Jordan dinar (JD) that you want to secure by obtaining a letter of credit or financial guarantee, the total amount must not exceed this combined limit. The combined limit for these kinds of accounts is indicated as 7&א£j? (JD 0.555). The reason behind such a significant number could be due to various factors such as the overall financial risk appetite of the banking sector in Jordan or it might also reflect the impact of inflation, changes in the regulatory environment over the years, and other relevant factors. In summary, these numbers indicate the combined maximum allowable limits for several key aspects of personal and business banking accounts. They are based on various factors such as economic developments, overall financial risk appetite, changes in the regulatory environment, and other relevant factors, and they are intended to help customers effectively manage their finances by preventing them from encountering unwanted financial situations.