Appendix 1: Quantitative and Qualitative Disclosures Required for Compliance with IFRS 7

CENTRAL BANK OF JORDAN 26

Appendix No. (1): Quantitative and Qualitative Disclosures Required for Compliance with the Application of International Financial Reporting Standard (IFRS 7)

• Banks are not required to reclassify financial statement items for the year 2017 according to the requirements of Standard (IFRS 9) and the International Accounting Standard (IAS 1); therefore, the financial statements for 2017 will not be comparable with the financial statements for 2018.
• Banks must modify their adopted accounting policies to align with the requirements of International Financial Reporting Standard (IFRS 9).
• Banks must disclose information that helps users of financial statements assess the nature and degree of risks to which the bank is exposed arising from financial instruments as of the date of the financial statements, as follows:

First: Qualitative Disclosures:

Following our circular No. (11141/1/10) dated 2007/11/12 and the attached approved forms for financial statements prepared according to International Financial Reporting Standards, these disclosures are to be modified to align with the disclosure requirements under International Financial Reporting Standard (IFRS 7) to include the following:

1. The bank's risk management system, risk management procedures, and the main units responsible for them.
2. The bank's risk management culture and the role of risk management policies and strategies in supporting and consolidating the bank's risk culture.
3. The acceptable risk limits of the bank, in alignment with the bank's approved business model(s).
4. Stress-testing, which must include:
   • The methodology for applying these tests.
   • The role and integration of these tests with risk management governance, risk culture, and capital plans.
   • The mechanism for selecting scenarios (Scenario Analysis), including assumptions related to macroeconomic variables.
   • The mechanism for using test results in decision-making at the appropriate management level, including strategic decisions by the Board of Directors and Senior Executive Management.
   • Governance of the application of stress tests.
5. Definition of default and the mechanism for handling default.
6. A detailed explanation of the bank's internal credit rating system and its mechanism of operation.

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CENTRAL BANK OF JORDAN 27

7. The approved mechanism for calculating Expected Credit Losses (ECL) on financial instruments, for each item individually.
8. Governance of the application of International Financial Reporting Standard (IFRS 9) requirements, including the responsibilities of the Board of Directors and Executive Management to ensure compliance with the application of the Standard.
9. Definition and mechanism for calculating and monitoring Probability of Default (PD), Exposure at Default (EAD), and Loss Given Default (LGD).
10. Determinants of significant changes in credit risk relied upon by the bank in calculating Expected Credit Losses.
11. The bank's policy in determining the common elements (specifications) upon which credit risk and Expected Credit Loss were measured on a collective basis.
12. The key economic indicators used by the bank in calculating Expected Credit Loss (PD).
13. Modification of the qualitative disclosures required under the aforementioned circular to align with what is applied in practice after implementing the requirements of International Financial Reporting Standard (IFRS 9), as follows:
    • Disclosure related to the bank's policies and procedures for accepting, measuring, monitoring, and controlling risks.
    • Disclosure related to the policies and procedures followed to avoid concentration of risks.
      [Any changes in the above qualitative disclosures for the previous period, the reasons for which may result from changes in the volume of risk exposure or management methods, shall be disclosed.]

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CENTRAL BANK OF JORDAN 28

Second: Quantitative Disclosures:

• The bank must clarify the impact of applying International Financial Reporting Standard (IFRS 9) on the opening balances for 2018 as follows:

Item (in Dinars)	Amount as of 2017/12/31	Reclassified Amount	Expected Credit Loss (ECL)	Balance as of 2018/1/1 after applying (IFRS 9)	Impact of Application Resulting from Reclassification	Balance Sheet Items Affected by Application
Cash and balances with central banks
Balances and deposits with banks and financial institutions
Financial assets at fair value through profit or loss
Of which transferred to FVOCI portfolio
Of which: Debt instruments
Of which: Equity instruments
Of which transferred to AC portfolio
Financial assets at fair value through other comprehensive income (FVOCI)
Of which transferred to FVPL portfolio
Direct credit facilities:
Of which transferred to FVPL portfolio
Debt instruments within amortized cost financial assets portfolio
Of which transferred to FVPL portfolio
Of which transferred to FVOCI portfolio
Financial guarantees
Undrawn limits
Documentary credits
Others

• Expected Credit Loss for the item is calculated after performing the reclassification process.

• Opening balance of the provision amount after applying International Financial Reporting Standard (IFRS 9):

Item (in Dinars)	Current Provision Amount	Difference Resulting from Re-measurement	Balance according to (IFRS 9)
Balances with central banks
Balances and deposits with banks and financial institutions
Direct credit facilities
Debt instruments within amortized cost financial assets portfolio
Debt instruments within fair value through other comprehensive income financial assets portfolio
Financial guarantees
Undrawn limits
Documentary credits
Others

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CENTRAL BANK OF JORDAN 29

• Expected Credit Losses for the period following 2018/1/1:

Item (in Dinars)	Stage 1 Individual	Stage 1 Collective	Stage 2 Individual	Stage 2 Collective	Stage 3	Total
Balances with central banks
Balances and deposits with banks and financial institutions
Direct credit facilities
Debt instruments within amortized cost financial assets portfolio
Debt instruments within fair value through other comprehensive income financial assets portfolio
Financial guarantees
Undrawn limits
Documentary credits
Others

• Disclosure of credit exposures according to Classification Instructions No. (47/2009), which is comparable with International Financial Reporting Standard (IFRS 9). (And is comparable with the previous period)

Item	According to Classification Instructions No. (47/2009)	According to International Financial Reporting Standard (IFRS 9)
	Total	Principal	Provision	Accrued Interest	Total	ECL	Accrued Interest	Stage 1	Stage 2	Stage 3
Performing debts
Debts under surveillance
Non-performing debts
Of which:
Sub-standard
Doubtful
Loss
Total

• The bank must also clarify the cumulative impact of the application on the Retained Earnings item as follows:

Item	Impact on Retained Earnings
Retained Earnings balance as of 2017/12/31*
General banking risk reserve
Expected Credit Losses on Assets (ECL) resulting from applying International Financial Reporting Standard (IFRS 9)
Impact of applying International Financial Reporting Standard (IFRS 9) (Impact of reclassifying financial assets)
Impact of applying International Financial Reporting Standard (IFRS 9) on Deferred Tax Assets/Liabilities
Retained Earnings balance (Opening Balance) as of 2018/1/1
Balance at the beginning of the year 2018/1/1
Profits (losses) from sale of financial assets through other comprehensive income (transferred to reserves)
Distributed profits
Transferred to increase capital
Others
Balance at the end of the period/year

• Disclosure of the balance (remaining) change in the impact of the early application of the Standard which was reversed in the banks' financial statements dated 2011/1/1.

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CENTRAL BANK OF JORDAN 30

• Regarding the impact of applying International Financial Reporting Standard (IFRS 9) on Deferred Tax Assets/Liabilities, the bank must clarify the following:

Item	Deferred Tax Assets	Deferred Tax Liabilities
Increase (Decrease) Expected Credit Losses on Assets (ECL)
Reclassification of financial assets

• Fair Value Reserve:

Item	Financial assets at fair value through other comprehensive income	Hedge Derivatives	Total
Balance as of 2017/12/31
Impact of applying International Financial Reporting Standard (IFRS 9)
Impact of applying International Financial Reporting Standard (IFRS 9) on Deferred Tax Assets/Liabilities
Adjusted opening balance as of 2018/1/1
Unrealized profits (losses) on debt instruments
Net change in the volume of Expected Credit Loss provision for debt instruments
(Profits) losses on debt instruments at fair value through other comprehensive income transferred to retained earnings due to sale
Unrealized profits (losses) on shares
(Profits) losses on equity instruments at fair value through other comprehensive income transferred to retained earnings due to sale
Hedge derivative valuation differences
Deferred tax assets
Deferred tax liabilities
Balance at the end of the year *

The Fair Value Reserve is shown net of tax at an amount of .................... Dinars.

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CENTRAL BANK OF JORDAN 31

• Change in Equity:

Sections of the Year	Subscribed Capital (Paid-up)	Share Premium	Treasury Shares	Legal	Voluntary	Special	Cash Flow Hedge Reserve	Foreign Branch	General Banking Risk Reserve	Foreign Exchange Differences	Fair Value Reserve	Shareholders' Share of Bonds and Loans for Shares	Retained Earnings (Accumulated Losses)	Total	Non-controlling Interests	Total Equity
Balance at the end of the year 2017/12/31
Impact of applying International Financial Reporting Standard (IFRS 9)
Adjusted opening balance as of 2018/1/1
Net Profit for the Bank for the Period
Included in Financial Assets at Fair Value through Other Comprehensive Income
Realized profits / losses from sale of financial assets at fair value through other comprehensive income
Net change in the volume of Expected Credit Loss provision for Debt Instruments included in Financial Assets at Fair Value through Other Comprehensive Income
Realized profits / losses from cash flow hedge derivatives transferred to profit or loss
Foreign currency translation differences
Net change in fair value of Equity Instruments included in Financial Assets at Fair Value through Other Comprehensive Income
Total Comprehensive Income
Transferred to Reserves
Distributed Profits
Increase in Capital
Others
Balance at the end of the year

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CENTRAL BANK OF JORDAN 32

• Financial assets at fair value through profit or loss:

Item	As of the end of the period/year
Company shares
Treasury bills and bonds
Investment funds
Others (in detail)
Total

• Financial assets at fair value through other comprehensive income

Item	As of the end of the period/year
Financial assets with market prices available
Government treasury bills
Government financial bonds and guarantees
Corporate bonds and loan bonds
Company shares
Other investments
Total financial assets with market prices available
Financial assets without market prices available
Government treasury bills
Government financial bonds and guarantees
Corporate bonds and loan bonds
Company shares
Other investments
Total financial assets without market prices available
Less: Impairment Provision (ECL)
Total financial assets at fair value through other comprehensive income

Debt Instruments Analysis:

Item	As of the end of the period/year
Fixed rate
Variable rate
Total

• Financial assets at amortized cost:

Item	As of the end of the period/year
Financial assets with market prices available
Government treasury bills
Government financial bonds and guarantees
Corporate bonds and loan bonds
Other financial bonds
Total financial assets with market prices available
Financial assets without market prices available
Government treasury bills
Government financial bonds and guarantees
Corporate bonds and loan bonds
Other financial bonds
Total financial assets without market prices available
Less: Impairment Provision (ECL)
Total financial assets at amortized cost

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CENTRAL BANK OF JORDAN 33

Debt Instruments Analysis:

Item	As of the end of the period/year
Fixed rate
Variable rate
Total

• Provide us with a detailed statement showing the discussions on debt instruments between securities portfolios (Financial assets at fair value through profit or loss, Financial assets at fair value through other comprehensive income, and Financial assets at amortized cost) which took place during the period/year, showing at least (each instrument individually / the amount transferred / the ECL provision on each instrument / the portfolio it was in and the portfolio it moved to).

• Provide us with a statement showing debt instruments within the Financial Assets at Fair Value through Profit or Loss portfolio which were traded during the period/year.

• Provide us with a statement showing debt instruments sold before their maturity date.

• Provide us with the methods used to measure the fair value of financial assets for which no market price is available.

• Within the balance sheet, financial assets must be shown net of the Expected Credit Loss related to them, while the Expected Credit Loss related to other instruments and credit limits must be shown under Other Liabilities in a separate item, and provide us with a statement showing the details thereof.

• Expected Credit Losses ("Expected Credit Loss, ECL"):

1. Impairment Allowance for Due from Central Banks:
   The bank must disclose the amount of impairment loss by which the balance was reduced, and also disclose the distribution of exposure based on credit risk, relying on the bank's internal rating system, as follows:

• Disclosure of net balances with central banks:

Item	Balance (in Dinars)
Balances with central banks
Less: Impairment Loss
Net balances with central banks

• Disclosure of the distribution of total balances with central banks according to the bank's internal credit rating categories:

Item	2018	2017
	Stage 1 Individual	Stage 2 Individual	Stage 3	Total	Total
Credit Rating Categories based on the Bank's Internal System:
Total

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CENTRAL BANK OF JORDAN 34

• Disclosure of movement on balances with central banks:

Item	Stage 1 Individual	Stage 2 Individual	Stage 3	Total
Total balance as of the beginning of the period/year
New balances during the year (New)
Repaid balances (repaid/ derecognized)
Transferred to Stage 1
Transferred to Stage 2
Transferred to Stage 3
Changes resulting from adjustments
Written-off balances
Adjustments resulting from exchange rate changes
Total balance as of the end of the period/year

• Disclosure of movement on the impairment provision:

Item	Stage 1 Individual	Stage 2 Individual	Stage 3	Total
Opening balance of the period/year
Impairment loss on new balances during the year (New)
Recovered from impairment loss on repaid balances (repaid/ derecognized)
Transferred to Stage 1
Transferred to Stage 2
Transferred to Stage 3
Impact on the provision -as of the end of the period/year- resulting from reclassification between the three stages during the period/year
Changes resulting from adjustments
Written-off balances
Adjustments resulting from exchange rate changes
Total balance as of the end of the period/year

2. Impairment Allowance for Due from Banks and FIs:
   Within the items of balances and deposits with banks and financial institutions, the bank must disclose the amount of impairment loss by which the balance was reduced, and also disclose the distribution of exposure based on credit risk, relying on the bank's internal rating system, as follows:

• Disclosure of "Net Balances and Deposits with Banks and Financial Institutions":

Item	Balance (in Dinars)
Balances and deposits with banks and financial institutions
Less: Impairment Loss
Net balances and deposits with banks and financial institutions

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CENTRAL BANK OF JORDAN 35

• Disclosure of the distribution of total balances and deposits with banks and financial institutions according to the bank's internal credit rating categories:

Item	2018	2017
	Stage 1 Individual	Stage 2 Individual	Stage 3	Total	Total
Credit Rating Categories based on the Bank's Internal System:
Total

• Disclosure of movement on balances and deposits with banks and financial institutions:

Item	Stage 1 Individual	Stage 2 Individual	Stage 3	Total
Total balance as of the beginning of the period/year
New balances and deposits during the year (New)
Repaid balances and deposits (repaid/ derecognized)
Transferred to Stage 1
Transferred to Stage 2
Transferred to Stage 3
Changes resulting from adjustments
Written-off balances and deposits
Adjustments resulting from exchange rate changes
Total balance as of the end of the period/year

• Disclosure of movement on the impairment provision:

Item	Stage 1 Individual	Stage 2 Individual	Stage 3	Total
Opening balance of the period/year
Impairment loss on new balances and deposits during the year (New)
Recovered from impairment loss on repaid balances and deposits (repaid/ derecognized)
Transferred to Stage 1
Transferred to Stage 2
Transferred to Stage 3
Impact on the provision -as of the end of the period/year- resulting from reclassification between the three stages during the period/year
Changes resulting from adjustments
Written-off balances and deposits
Adjustments resulting from exchange rate changes
Total balance as of the end of the period/year

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CENTRAL BANK OF JORDAN 36

3. Impairment Allowance for Loans and Advances to Customers:

a. Regarding loans granted to corporations (Corporate Lending): The bank must disclose exposures within the three stages (Stage 1, Stage 2, Stage 3) based on the quality of the facilities relying on the bank's internal credit rating system.

Example of a hypothetical illustration:
(Performing, High Grade, Standard Grade, Sub-standard Grade, Past Due but not Impaired, Non-Performing). The bank must also disclose the movement on the total balance of facilities and the movement on the provision at the level of each stage - including written-off amounts and adjustments related to exchange rates - noting that the calculation of Expected Credit Loss will be at the individual level.

• Disclosure of the distribution of total facilities according to the bank's internal credit rating categories:

Item	2018	2017
	Stage 1 Individual	Stage 2 Individual	Stage 3	Total	Total
Credit Rating Categories based on the Bank's Internal System:
Total

• Disclosure of movement on facilities:

Item	Stage 1 Individual	Stage 2 Individual	Stage 3	Total
Total balance as of the beginning of the period/year
New facilities during the year (New)
Repaid facilities (repaid/ derecognized)
Transferred to Stage 1
Transferred to Stage 2
Transferred to Stage 3
Changes resulting from adjustments
Written-off facilities
Adjustments resulting from exchange rate changes
Total balance as of the end of the period/year

• Disclosure of movement on the impairment provision:

Item	Stage 1 Individual	Stage 2 Individual	Stage 3	Total
Opening balance of the period/year
Impairment loss on new facilities during the year (New)
Recovered from impairment loss on repaid facilities (repaid/ derecognized)
Transferred to Stage 1
Transferred to Stage 2
Transferred to Stage 3
Impact on the provision -as of the end of the period/year- resulting from reclassification between the three stages during the period/year
Changes resulting from adjustments
Written-off facilities
Adjustments resulting from exchange rate changes
Total balance as of the end of the period/year

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CENTRAL BANK OF JORDAN 37

b. Regarding loans granted to Small and Medium Enterprises (SMEs Lending): The bank must disclose exposures within the three stages (Stage 1, Stage 2, Stage 3) based on the quality of the facilities relying on the bank's internal credit rating system. The bank must also disclose the movement on the total balance of facilities and the movement on the provision at the level of each stage - including written-off amounts and adjustments related to exchange rates - noting that the calculation of Expected Credit Loss may be at the individual level or at the portfolio level.

• Disclosure of the distribution of total facilities according to the bank's internal credit rating categories:

Item	2018	2017
	Stage 1 Collective	Stage 1 Individual	Stage 2 Collective	Stage 2 Individual	Stage 3	Total	Total
Credit Rating Categories based on the Bank's Internal System:
Total

• Disclosure of movement on facilities:

Item	Stage 1 Collective	Stage 1 Individual	Stage 2 Collective	Stage 2 Individual	Stage 3	Total
Total balance as of the beginning of the period/year
New facilities during the year (New)
Repaid facilities (repaid/ derecognized)
Transferred to Stage 1
Transferred to Stage 2
Transferred to Stage 3
Changes resulting from adjustments
Written-off facilities
Adjustments resulting from exchange rate changes
Total balance as of the end of the period/year

• Disclosure of movement on the impairment provision:

Item	Stage 1 Collective	Stage 1 Individual	Stage 2 Collective	Stage 2 Individual	Stage 3	Total
Opening balance of the period/year
Impairment loss on new facilities during the year (New)
Recovered from impairment loss on repaid facilities (repaid/ derecognized)
Transferred to Stage 1
Transferred to Stage 2
Transferred to Stage 3
Impact on the provision -as of the end of the period/year- resulting from reclassification between the three stages during the period/year
Changes resulting from adjustments
Written-off facilities
Adjustments resulting from exchange rate changes
Total balance as of the end of the period/year

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CENTRAL BANK OF JORDAN 38

c. Regarding the retail portfolio (Consumer Lending): The bank must disclose in the same manner as used for the corporate and SME portfolios, except that the method of calculating Expected Credit Loss may be at the individual level or at the portfolio level.

• Disclosure of the distribution of total facilities according to the bank's internal credit rating categories:

Item	2018	2017
:---	:---	:---	:
	Stage 1 Collective	Stage 2 Collective	Stage 3	Total	Total
Credit Rating Categories based on the Bank's Internal System:
Total

• Disclosure of Movement in Facilities:

Item	Stage 1 Collective	Stage 2 Collective	Stage 3	Total
Total Balance as at the beginning of the period/year
New facilities during the year (New)
Repaid facilities (repaid/ derecognized)
Transferred to Stage 1
Transferred to Stage 2
Transferred to Stage 3
Changes resulting from adjustments
Write-offs
Adjustments due to exchange rate changes
Total Balance as at the end of the period/year

• Disclosure of Movement in Impairment Allowance:

Item	Stage 1 Collective	Stage 2 Collective	Stage 3	Total
Balance at the beginning of the period/year
Impairment loss on new facilities during the year (New)
Recovered from impairment loss on repaid facilities (repaid/ derecognized)
Transferred to Stage 1
Transferred to Stage 2
Transferred to Stage 3
Impact on the allowance - as at the end of the period/year - resulting from reclassification among the three stages during the period/year
Changes resulting from adjustments
Write-offs
Adjustments due to exchange rate changes
Total Balance as at the end of the period/year

D. With regard to the Residential Mortgages portfolio: the Bank must disclose in the same manner, except that the method for calculating Expected Credit Loss (ECL) may be on an individual (Individual) or portfolio (Collective) level.

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CENTRAL BANK OF JORDAN 39 Central Bank of Jordan

• Disclosure of distribution of total facilities by the Bank's internal credit rating categories:

Item	2018	2017
:---	:---	:---	:
	Stage 1 Collective	Stage 2 Collective	Stage 3	Total	Total
Credit Rating Categories based on the Bank's Internal System:
Total

• Disclosure of Movement in Facilities:

Item	Stage 1 Collective	Stage 2 Collective	Stage 3	Total
Total Balance as at the beginning of the period/year
New facilities during the year (New)
Repaid facilities (repaid/ derecognized)
Transferred to Stage 1
Transferred to Stage 2
Transferred to Stage 3
Changes resulting from adjustments
Write-offs
Adjustments due to exchange rate changes
Total Balance as at the end of the period/year

• Disclosure of Movement in Impairment Allowance:

Item	Stage 1 Collective	Stage 2 Collective	Stage 3	Total
Balance at the beginning of the period/year
Impairment loss on new facilities during the year (New)
Recovered from impairment loss on repaid facilities (repaid/ derecognized)
Transferred to Stage 1
Transferred to Stage 2
Transferred to Stage 3
Impact on the allowance - as at the end of the period/year - resulting from reclassification among the three stages during the period/year
Changes resulting from adjustments
Write-offs
Adjustments due to exchange rate changes
Total Balance as at the end of the period/year

E. With regard to facilities granted to the Government and the Public Sector: the Bank must disclose exposures within the three stages (Stage 1, Stage 2, Stage 3) based on facility quality depending on the Bank's internal credit rating system. The Bank must also disclose the movement in the total facility balance and the movement in the allowance at the level of each stage - including write-offs and adjustments related to exchange rates - noting that the calculation of Expected Credit Loss will be on an individual (Individual) level.

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CENTRAL BANK OF JORDAN 40 Central Bank of Jordan

• Disclosure of distribution of total facilities by the Bank's internal credit rating categories:

Item	2018	2017
:---	:---	:---	:
	Stage 1 Individual	Stage 2 Individual	Stage 3	Total	Total
Credit Rating Categories based on the Bank's Internal System:
Total

• Disclosure of Movement in Facilities:

Item	Stage 1 Individual	Stage 2 Individual	Stage 3	Total
Total Balance as at the beginning of the period/year
New facilities during the year (New)
Repaid facilities (repaid/ derecognized)
Transferred to Stage 1
Transferred to Stage 2
Transferred to Stage 3
Changes resulting from adjustments
Write-offs
Adjustments due to exchange rate changes
Total Balance as at the end of the period/year

• Disclosure of Movement in Impairment Allowance:

Item	Stage 1 Individual	Stage 2 Individual	Stage 3	Total
Balance at the beginning of the period/year
Impairment loss on new facilities during the year (New)
Recovered from impairment loss on repaid facilities (repaid/ derecognized)
Transferred to Stage 1
Transferred to Stage 2
Transferred to Stage 3
Impact on the allowance - as at the end of the period/year - resulting from reclassification among the three stages during the period/year
Changes resulting from adjustments
Write-offs
Adjustments due to exchange rate changes
Total Balance as at the end of the period/year

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CENTRAL BANK OF JORDAN 41 Central Bank of Jordan

• Disclosure of Movement in Facilities collectively as at the end of the period:

Item	Stage 1 Individual	Stage 1 Collective	Stage 2 Individual	Stage 2 Collective	Stage 3	Total
Total Balance as at the beginning of the period/year
New facilities during the year (New)
Repaid facilities (repaid/ derecognized)
Transferred to Stage 1
Transferred to Stage 2
Transferred to Stage 3
Changes resulting from adjustments
Write-offs
Adjustments due to exchange rate changes
Total Balance as at the end of the period/year

• Disclosure of Movement in Impairment Loss collectively as at the end of the period:

Item	Large Corporates	SMEs	Individuals	Residential Mortgages	Government and Public Sector	Total
Balance at the beginning of the period/year
Impairment loss on new facilities during the year (New)
Recovered from impairment loss on repaid facilities (repaid/ derecognized)
Transferred to Stage 1
Transferred to Stage 2
Transferred to Stage 3
Impact on the allowance - as at the end of the period/year - resulting from reclassification among the three stages during the period/year
Changes resulting from adjustments
Write-offs
Adjustments due to exchange rate changes
Total Balance as at the end of the period/year
Re-allocation:
Allowances at individual level
Allowances at collective level

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CENTRAL BANK OF JORDAN 42 Central Bank of Jordan

4. Impairment Losses on Financial Investments:
   A. Debt Instruments at Fair Value Through Other Comprehensive Income (Debt Instruments at FVOCI):
   The Bank will disclose credit risks related to these instruments (measured at fair value) depending on the Bank's internal credit rating system and the stage in which the exposure/instrument is classified as at the end of the year (Stage 1, Stage 2, Stage 3). The Bank must also disclose the movement in the total balance of facilities and the movement in the allowance at the level of each stage - including write-offs and adjustments related to exchange rates - noting that the calculation of the loss may be on an individual (Individual) or portfolio (Collective) level.

• Disclosure of distribution of total investments by the Bank's internal credit rating categories:

Item	2018	2017
:---	:---	:---	:
	Stage 1 Individual	Stage 2 Individual	Stage 3	Total	Total
Credit Rating Categories based on the Bank's Internal System:
Total

• Disclosure of Movement in Investments:

Item	Stage 1 Individual	Stage 2 Individual	Stage 3	Total
Fair Value as at the beginning of the period/year
New investments during the year (New)
Matured investments (matured/derecognized)
Change in Fair Value
Transferred to Stage 1
Transferred to Stage 2
Transferred to Stage 3
Changes resulting from adjustments
Write-offs
Adjustments due to exchange rate changes
Total Balance as at the end of the period/year

• Disclosure of Movement in Impairment Allowance:

Item	Stage 1 Individual	Stage 2 Individual	Stage 3	Total
Balance at the beginning of the period/year
Impairment loss on new investments during the year (New)
Recovered from impairment loss on matured investments (matured/derecognized)
Transferred to Stage 1
Transferred to Stage 2
Transferred to Stage 3
Impact on the allowance - as at the end of the period/year - resulting from reclassification among the three stages during the period/year
Changes resulting from adjustments
Write-offs
Adjustments due to exchange rate changes
Total Balance as at the end of the period/year

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CENTRAL BANK OF JORDAN 43 Central Bank of Jordan

B. Debt Instruments at Amortized Cost: The Bank will disclose in the same manner as for (Debt Instruments at FVOCI), such that the amounts disclosed will be gross of impairment allowances.

• Disclosure of distribution of total investments by the Bank's internal credit rating categories:

Item	2018	2017
:---	:---	:---	:
	Stage 1 Individual	Stage 2 Individual	Stage 3	Total	Total
Credit Rating Categories based on the Bank's Internal System:
Total

• Disclosure of Movement in Investments:

Item	Stage 1 Individual	Stage 2 Individual	Stage 3	Total
Fair Value as at the beginning of the period/year
New investments during the year (New)
Matured investments (matured/derecognized)
Change in Fair Value
Transferred to Stage 1
Transferred to Stage 2
Transferred to Stage 3
Changes resulting from adjustments
Write-offs
Adjustments due to exchange rate changes
Total Balance as at the end of the period/year

• Disclosure of Movement in Impairment Allowance:

Item	Stage 1 Individual	Stage 2 Individual	Stage 3	Total
Balance at the beginning of the period/year
Impairment loss on new investments during the year (New)
Recovered from impairment loss on matured investments (matured/derecognized)
Transferred to Stage 1
Transferred to Stage 2
Transferred to Stage 3
Impact on the allowance - as at the end of the period/year - resulting from reclassification among the three stages during the period/year
Changes resulting from adjustments
Write-offs
Adjustments due to exchange rate changes
Total Balance as at the end of the period/year

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CENTRAL BANK OF JORDAN 44 Central Bank of Jordan

• Disclosure of Movement in Investments collectively as at the end of the period:

Item	Stage 1 Individual	Stage 2 Individual	Stage 3	Total
Fair Value as at the beginning of the period/year
New investments during the year (New)
Matured investments (matured/derecognized)
Change in Fair Value
Transferred to Stage 1
Transferred to Stage 2
Transferred to Stage 3
Changes resulting from adjustments
Write-offs
Adjustments due to exchange rate changes
Total Balance as at the end of the period/year

• Disclosure of Movement in Impairment Allowance collectively as at the end of the period:

Item	Stage 1 Individual	Stage 2 Individual	Stage 3	Total
Balance at the beginning of the period/year
Impairment loss on new investments during the year (New)
Recovered from impairment loss on matured investments (matured/derecognized)
Transferred to Stage 1
Transferred to Stage 2
Transferred to Stage 3
Impact on the allowance - as at the end of the period/year - resulting from reclassification among the three stages during the period/year
Changes resulting from adjustments
Write-offs
Adjustments due to exchange rate changes
Total Balance as at the end of the period/year

C. Impairment Loss on Balances Receivable from Sales with Agreement to Repurchase and Other Receivables (Assets for Reverse Repo and Other Receivables):
These are disclosed according to (the same methodology) referred to above.

Form (09/01/1/1)

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CENTRAL BANK OF JORDAN 45 Central Bank of Jordan

6. Impairment Losses on Indirect Facilities
   (Impairment Losses on Guarantees and Other Commitments) The Bank will disclose the credit risks (maximum exposure) related to these facilities depending on the Bank's internal credit rating system and the stage in which the exposure/instrument is classified as at the end of the year (Stage 1, Stage 2, Stage 3). The Bank must also disclose the movement in the total facility balance and the movement in the allowance at the level of each stage - including write-offs and adjustments related to exchange rates - noting that the calculation of the loss may be on an individual (Individual) or portfolio (Collective) level. Disclosure will be at the level of each type of indirect facility separately (guarantees, letters of credit, others).

• Disclosure of distribution of total indirect facilities by the Bank's internal credit rating categories (for each type separately):

Item	2018	2017
:---	:---	:---	:	:	:	:
	Stage 1 Collective	Stage 1 Individual	Stage 2 Collective	Stage 2 Individual	Stage 3	Total	Total
Credit Rating Categories based on the Bank's Internal System:
Total

• Disclosure of Movement in Indirect Facilities (for each type separately):

Item	Stage 1 Collective	Stage 1 Individual	Stage 2 Collective	Stage 2 Individual	Stage 3	Total
Total Balance as at the beginning of the period/year
New exposures during the period/year (New)
Matured exposures (matured/derecognized)
Transferred to Stage 1
Transferred to Stage 2
Transferred to Stage 3
Changes resulting from adjustments
Write-offs
Adjustments due to exchange rate changes
Total Balance as at the end of the period/year

• Disclosure of Movement in Impairment Allowance (for each type separately):

Item	Stage 1 Collective	Stage 1 Individual	Stage 2 Collective	Stage 2 Individual	Stage 3	Total
Balance at the beginning of the period/year
Impairment loss on new exposures during the year (New)
Impairment loss on matured exposures (matured/derecognized)
Transferred to Stage 1
Transferred to Stage 2
Transferred to Stage 3
Impact on the allowance - as at the end of the period/year - resulting from reclassification among the three stages during the period/year
Changes resulting from adjustments
Write-offs
Adjustments due to exchange rate changes
Total Balance as at the end of the period/year

Form (09/01/1/1)

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CENTRAL BANK OF JORDAN 46 Central Bank of Jordan

• Disclosure of Movement in Indirect Facilities collectively as at the end of the period:

Item	Stage 1 Collective	Stage 1 Individual	Stage 2 Collective	Stage 2 Individual	Stage 3	Total
Total Balance as at the beginning of the period/year
New exposures during the period/year (New)
Matured exposures (matured/derecognized)
Transferred to Stage 1
Transferred to Stage 2
Transferred to Stage 3
Changes resulting from adjustments
Write-offs
Adjustments due to exchange rate changes
Total Balance as at the end of the period/year

• Disclosure of Movement in Impairment Loss for Indirect Facilities collectively as at the end of the period:

Item	Stage 1 Collective	Stage 1 Individual	Stage 2 Collective	Stage 2 Individual	Stage 3	Total
Balance at the beginning of the period/year
Impairment loss on new exposures during the year (New)
Impairment loss on matured exposures (matured/ derecognized)
Transferred to Stage 1
Transferred to Stage 2
Transferred to Stage 3
Impact on the allowance - as at the end of the period/year - resulting from reclassification among the three stages during the period/year
Changes resulting from adjustments
Write-offs
Adjustments due to exchange rate changes
Total Balance as at the end of the period/year

Form (09/01/1/1)

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CENTRAL BANK OF JORDAN 47 Central Bank of Jordan

• Risk Management Disclosures:

1. Distribution of Credit Exposures:

Bank Rating Grade	Rating Category per Instructions (47/2009)	Total Exposure Value	Expected Credit Losses (ECL)	Probability of Default (PD)	External Rating Agency Classification	Exposure at Default (EAD) in Million JOD	Loss Given Default (LGD) %
Performing exposures
Non-performing exposures

2. Distribution of Exposures by Economic Sectors:
   a. Total Distribution of Exposures by Financial Instruments:

	Financial	Industry	Trade	Real Estate	Agriculture	Shares	Individuals	Government and Public Sector	Others	Total
Balances with Central Banks
Balances with Banks and Financial Institutions
Deposits with Banks and Financial Institutions
Credit Facilities
Bonds and Treasury Bills:
Within Financial Assets at Fair Value Through Profit or Loss
Within Financial Assets at Fair Value Through Other Comprehensive Income
Within Financial Assets at Amortized Cost
Financial Derivatives
Pledged Financial Assets (Debt Instruments)
Other Assets
Total / For Current Year
Financial Guarantees
Letters of Credit
Other Commitments
Grand Total

b. Distribution of Exposures by Classification Stages per IFRS9 Standard:

Item	Stage 1 Individual	Stage 1 Collective	Stage 2 Individual	Stage 2 Collective	Stage 3	Total
Financial
Industrial
Trade
Real Estate
Agriculture
Shares
Individuals
Government and Public Sector
Others
Total

Form (09/01/1/1)

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CENTRAL BANK OF JORDAN 48 Central Bank of Jordan

3. Distribution of Exposures by Geographic Distribution:
   a. Total Distribution of Exposures by Geographic Regions:

	Within the Kingdom	Other Middle East Countries	Europe	Asia	Africa	America	Other Countries	Total
Balances with Banks

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