Central Bank of Jordan

Circular No. 2020-01

Date: 01/02/2020

Subject: Implementation of IFRS 9 "Financial Instruments"

To the CEOs of Banks and Financial Institutions,

Greetings,

In light of the adoption of International Financial Reporting Standard (IFRS) 9 "Financial Instruments" issued by the International Accounting Standards Board (IASB), and in accordance with the provisions of Article (18) of the Central Bank of Jordan Law No. (22) of 2018, and Article (17) of the Executive Bylaws of the Central Bank of Jordan, and in light of the need to update the regulatory framework to align with international standards, the Central Bank of Jordan has issued this circular to regulate the implementation of IFRS 9 by banks and financial institutions operating in Jordan.

This circular aims to clarify the regulatory requirements for the implementation of IFRS 9, including the transition rules, the impact on capital adequacy, and the disclosure requirements. It also outlines the timeline for implementation and the reporting obligations of banks and financial institutions.

The Central Bank of Jordan expects all banks and financial institutions to comply with the provisions of this circular and to take the necessary steps to ensure a smooth transition to IFRS 9. The Central Bank of Jordan will continue to monitor the implementation process and provide guidance as needed.

We appreciate your cooperation and commitment to maintaining the highest standards of financial reporting and regulatory compliance.

Sincerely,

The Governor Central Bank of Jordan

www.cbj.gov.jo

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