Regulatory Alerts2021-03-31
Added · Updated
Amendment to Instructions on Dealing with Customers Fairly and Transparently Regarding Variable Interest Rate References
The Central Bank of Jordan amended Article 6(d) of its Instructions on Dealing with Customers Fairly and Transparently to mandate that variable interest rates for retail credit products be linked to the monthly average of the Overnight Interbank Rate announced by the CBJ. Islamic banks are permitted to use the Central Bank's discount rate as a reference indicator, while all banks must clearly disclose fixed and variable rate components and prohibit setting a minimum reference rate. These provisions apply to new or renewed retail contracts effective July 1, 2018, while existing contracts and top-ups signed before that date may continue using JODIBOR.