Central Bank of Jordan Circular on COVID-19 Measures

CENTRAL BANK OF JORDAN

Circular regarding the measures to be taken in light of the spread of the Corona Virus (COVID-19) and its impact on the financial sector.

The Central Bank of Jordan has issued this circular to outline the necessary steps and guidelines for licensed financial institutions to mitigate the risks associated with the COVID-19 pandemic. This directive aims to ensure the stability of the financial system and protect the interests of depositors and borrowers.

Key provisions include:

1. Risk Management: Financial institutions are required to enhance their risk assessment frameworks to account for the uncertainties posed by the pandemic. This includes reviewing credit portfolios and identifying potential exposures.

2. Support for Borrowers: Institutions are encouraged to provide relief measures to borrowers affected by the crisis, such as loan restructuring or payment deferrals, in accordance with regulatory guidelines.

3. Operational Continuity: Banks and financial entities must ensure the continuity of essential services and implement business continuity plans to cope with potential disruptions.

4. Reporting: Regular updates on the impact of the pandemic and the measures taken by the institution must be submitted to the Central Bank as requested.

The Central Bank of Jordan remains committed to supporting the financial sector and the broader economy through this challenging period. All licensed institutions are expected to comply with these directives promptly.