Regulatory Alerts2024-07-01
Added · Updated
Amended Circular on Instructions No. (13-2018) and Instructions No. (6-2020)
The Central Bank of Jordan has amended Instructions No. (2018/13) for applying IFRS (9) and Instructions No. (2020/6) for applying AAOIFI Financial Accounting Standards for licensed banks, effective January 1, 2025. These amendments align the instructions with the new "Instructions for Classifying Credit Exposures and Calculating Impairment Provisions No. (2024/8)". Key changes include removing the requirement for board approval for system output adjustments in expected credit loss calculations, standardizing the overdue period for Stage Two credit risk indicators to 30 days, and linking credit exposure transfers between stages to Article (5) of the new instructions. Additionally, the maximum single credit exposure for aggregated risk measurement is reduced from 250,000 JOD to 150,000 JOD, and deduction ratios for eligible collateral are now governed by the new instructions.