Amendments to the Electronic Clearing System Law and Instructions

In the Name of Allah, the Most Gracious, the Most Merciful

Central Bank of Jordan
Ref: 10/5/494
Date: 7/1/2021 AD
Corresponding to: 23/5/1442 AH

Circular to Licensed Banks

Greetings,

Please be informed that financial soundness indicators (Jordan branches and consolidated financial statements) and the schedule of non-performing debts, accrued interest, and provisions will be automated through the Office Supervision System (CBJOSS). This will be achieved by providing screens on the system through which all banks will provide us with financial soundness indicators at the level of Jordan branches, effective from the March 2020 data.

Please note that access rights have been granted on the financial soundness indicators screen to the relevant users (USERS) at your institution to input the aggregate data into the Office Supervision System on the Banking Sector.

Referring to the following:

First: Full compliance with the deadlines for uploading the aforementioned data to the Office Supervision System and within the specified deadlines, varying by their cycles, according to the requirements of our Circular No. (14576/2/10) dated 9/11/2016.

Second: Giving the utmost importance to the correctness and accuracy of the data provided to the Central Bank, under the threat of imposing any of the penalties stipulated in paragraph (b) of Article (88) of Banking Law No. (28) of 2000 and its amendments.

Third: The following should be taken into consideration when entering the required data:

1. Non-performing debts, monitored debts, accrued interest, and provisions for each of them should be listed in the data field approved by the Central Bank of Jordan, corresponding to the provision followed (the most severe) according to Instructions (2009/47) or the requirements of Standard (9), so that these data are reflected in the financial soundness indicators.

P.O. Box 27 • Amman 11118 Jordan • Phone: 4630301 Fax: 4638889 • Website: www.cbj.gov.jo • Email: info@cbj.gov.jo

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CENTRAL BANK OF JORDAN
البنك المركزي الأردني

2. The provision for "Non-performing Facilities / Phase Three" and the provision for "Monitored Facilities / Phase Two" should be listed, excluding any other provisions such as provisions against external investment risks, which are included in other provisions.

3. Net direct facilities are defined as the total direct facilities after excluding accrued interest and corresponding provisions.

Fourth: Efforts should be made to upload the financial soundness indicators (Jordan branches and consolidated financial statements) and the schedule of non-performing debts, accrued interest, and provisions for the period preceding the quarterly data (2020/03, 2020/06, 2020/09) within a maximum of two weeks from the date of this circular.

Please accept our highest regards,

Governor
Dr. Ziad Fries

Form (09/01/1/1)