Regulatory Alerts2026-07-14
Added · Updated
Central Bank of Jordan: Capital Adequacy Instructions under Basel III Standard No. 67/2016
The Central Bank of Jordan mandates that all banks operating in the Kingdom comply with Basel III capital adequacy standards, requiring total regulatory capital to be at least 12% of risk-weighted assets. The instructions specify minimum ratios of 6% for Common Equity Tier 1, a maximum of 1.5% for Additional Tier 1, and a maximum of 2% for Tier 2, alongside a 2.5% conservation buffer composed of Common Equity Tier 1. Banks must consolidate affiliated financial companies and deduct investments in non-consolidated entities from their regulatory capital, while defining strict eligibility criteria for capital instruments and risk-weighting methodologies for credit, market, and operational risks.
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